title: "Pricing Strategy" created: 2026-04-06T00:00:00.000Z modified: 2026-04-06T18:10:00.000Z tags: [product, pricing, finance, strategy] order: 2
Pricing Strategy
"Price it so they feel clever for buying it, not guilty."
Our pricing isn't just about margins — it's about positioning. Every price point tells the customer something about the product, the experience, and how special they should feel about owning it. George built this framework after he caught Fred pricing everything at "whatever feels fun."
Pricing Tiers
| Tier | Price Range (Galleons) | Positioning | Target Customer | Margin |
|---|---|---|---|---|
| Budget | 1 - 3G | Impulse buy, pocket money friendly | Students, first-timers | 60-65% |
| Standard | 3 - 7G | Core product line, best value | Repeat customers, gift buyers | 55-60% |
| Premium | 7 - 15G | Luxury experience, special occasions | Date night, collectors | 65-70% |
| Collector | 15G+ | Limited edition, signed, numbered | Superfans, Slytherins | 70-80% |
Tier Philosophy
Budget (1-3G)
The gateway. Every customer's first Weasley purchase should be in this tier. Low commitment, high delight. If someone walks in with 2 Galleons, they should leave with a product AND a story. Patronus Pop Rocks sits here at 3G — affordable enough to buy on impulse, magical enough to bring friends back.
Standard (3-7G)
The workhorse. This is where most revenue lives. Products here need to feel like a treat, not a splurge. Canary Cream Supremes at 5G is the benchmark — premium enough to feel special, accessible enough for a birthday gift.
Premium (7-15G)
The experience tier. Moonbeam Meltdrops at 7G is the entry point. These products aren't just candy — they're moments. Packaging matters here. Unboxing experience matters. The customer should feel like they bought something from a jeweller, not a sweet shop.
Collector (15G+)
The flex tier. Limited runs, numbered editions, occasionally signed by Fred and George. These exist for superfans and status buyers. Low volume, extraordinary margins. Example: Holiday Gift Box (signed, numbered, 25G) sold out in 3 hours last Christmas.
Pricing Rules
- Never discount below tier floor. A 3G product never drops below 1G. It devalues the brand.
- Bundles can cross tiers. A Budget + Standard bundle at a combined discount is encouraged — it moves customers up.
- Seasonal pricing is temporary. Holiday markups revert after the season. No permanent price increases from seasonal demand.
- Wholesale is always 30% off retail. Non-negotiable. Honeydukes tried for 35%. We held firm. They came back anyway.
- New products launch at full price. No introductory discounts. If the product is good enough to launch, it's good enough to charge for.
Margin Targets by Category
| Category | Target Margin | Current Margin | Notes |
|---|---|---|---|
| Candy (standard) | 60% | 58% | Stardust costs are rising |
| Candy (premium) | 68% | 66% | Gold foil packaging adds 0.5G/unit |
| Pranks (consumable) | 55% | 57% | Ahead of target |
| Pranks (reusable) | 45% | 44% | Extendable Ears margin is tight |
| Bundles | 52% | 51% | Acceptable — bundles drive volume |
See [[Product]] for the full product roadmap. See [[Finance]] for revenue tracking. See [[Candy Catalog]] for current pricing by product.