In today’s, video, I’m gonna, be giving you guys the best strategy to price products in 2019. So I’m gonna be giving you a formula that I use on how to price my products and some of some other key metrics that I’ve got gathered over the three years.
I’ve, been doing e-commerce guys so, like I said this, video is all gonna, be all about how to price products. Now. This is something that I truly do believe. A lot of people overlook in the dropship in an e-commerce world.
They don’t want us on how to price products. They just guess, and the estimate – and this is a massive mistake – it will cost you thousands, if not tens, of thousands of dollars, and this is a mistake that I made when I started now.
I don’t want you guys to make the same mistakes. I’m gonna be giving away everything you’re gonna need to know today on how to price your products, so the person that will in the giveaway for the 15 minute consultation call was Nicolas so mmm.
This is the person that won. You should be able to see the car here on the profile once a Nicolas you’ve won. All you need to do is just message me on Facebook or Instagram, and what we’ll do. Is we’ll, arrange a time to schedule that free consultation 15 minute call now guys if you want to win a 15 minute consultation call me we can talk about Facebook cards, your website, your email, marketing list, it doesn’t matter Over 15 minutes, you can ask me whatever you want, and I can help you do whatever you want in that 15 minutes now, if you want to win a consultation call me all you need to do is comment.
Takeover 2019 subscribe to the YouTube channel like this video and comment to take over 2019, that’s. All you need to do to enter the giveaway guys and I will be announcing and the next winner of the giveaway on my next YouTube video so guys you don’t miss out on that opportunity.
So let’s, dive straight into the content on how to price your products for your drop shipping business so guys we’re on my computer now, so we can dive straight into the content, which is how to price your drop shipping Products now, like I said this is such an important topic that people overlook, so let’s, dive straight into the content guys.
So before I move on to how to price your products, I just want to talk a little bit about the importance of how the products or products now. This is something that people overlook, and this is something that other people, when they teach don ‘
T mention now this is really important when people learn things they don’t understand the important see now when you don’t understand the importance of what you’re learning. You don’t, treat it to the same expectation when you understand the importance e.
So if this is why, in every video, I always highlight the importance of sort of a certain topic now that’s, because I want you to understand the importance of this topic, so you approach it in the highest manner.
So let’s. Move on so to maximize profit margins is one of the most important things you need to understand that you can maximize your profit margins, so your business remains profitable. So if your profit margins ain’t up to strap scratch, you’re, actually going to be unprofitable, your return on adspend, so your robbaz is not going to be it’s not going to be high enough.
It’s out way how much you’re buying your products for, and your expenses, which means you’re, going to be left on profitable there’s, no point in a business. If you’re, not profitable, it just doesn’t, make sense and again, even if you’re profitable.
This is another mistake. So, even if you are profitable, some people could make an extra dollar two dollars, but they would never know because then they’ve, never used these tactics. I’m going to give you today so that’s.
One of the most important reasons: the next one is you position yourself correctly in your marketplace now. This is another big mistake: if you don’t position yourself correctly in your marketplace, when people come to your product page, if you’re charging too much or too less, then people will get red flags in their head.
Saying: okay, this guy’s. Trying to overprice me I don’t like the look of it. Let me go to another website or if you under charge them somebody might say this is too good to be true. So you need to understand that you need to position yourself correctly and obviously this will differentiate depending on your niche now to pay for costs.
So you need to understand that the importancy of product pricing is because, if you don’t price, your products correctly, then again it comes back to the top bullet point. You won’t be profitable because you will not be making enough money to pay for your ad spends, which is euro as your taxes, your apps, your website, hosting your suppliers, your VA s, so if you’re, not purchasing your products Correctly, when you’re selling them, you will not have enough money to pay for these expenses, which means you’re unprofitable and, like I said there’s, no point having a business if you’re unprofitable.
So there, the main reasons why guys, I’m, not going to spend too much time talking about these, but I wanted to highlight these are the main reasons why enterprise your products accordingly to what I’ve, just said so.
The easiest pricing method – I can imagine to give you guys now – I’ve – made this so simple for you guys that it doesn’t. Take it’s, not that hard to work this stuff out, guys like it’s, the easiest stuff I’ve ever seen.
So again, this will various while the pricing that I’m going to give you now is going to vary depending on the knees you’re in and the products you’re silent. But this is just a general rule of thumb.
This is the pricing strategy. You should try and use, but, like I said it will vary depending on your niche, so I recommend having a profit margin of 40 to 70 percent. So in an overall forum, I want you to at least have 40 to 70 percent.
Now, of course, depending on the niche you’re in and what purchase silence. Some are more profitable than others, but 40 to 70 percent is a good area to stand between now. Another thing before I move on a lot of people get like a lot of people in facebook groups bought and anywhere it is on in on the internet.
Instagram people like blow about it’s where they take their screenshots of their dashboard on how much revenue they’ve made in a day, and they glow about it. Now guys you don’t understand that’s, not actually net profit.
Now net profit means your profit. After all, your expenses like ads and whatnot. So a lot of people brag about how much money they’ve made, but they will never tell you what that print net profit margin is and that’s because normally it’s less than 30 percent or it’s 30 or less so guys, don’t hug before I know it’s a little bit off topic, but I see all the time and it really does piss me off when people put their little she snippets of how Much they’ve made like at the end of the day.
Nobody gives a I don’t care because I’ve, been in the games for so long now. I know how it works. It’s. Not your net profit. If it’s, not your net profit. I don’t, give a revenue don’t mean revenue is just revenue.
This company is that I’m, making a million dollars and they’re, still, not profitable, so guys, just something that I wanted to give you a heads up. Don’t fall for that trap, where people glow on how much them money they make and try and buy it and try and get you into buying things and whatnot.
Just all I’d, say that so the next thing is supplier price. So if your product, if the product that you’re buying from your supplier, is either zero dollars or two dollars, then price your product that $ 14.
99. Now I never price my products anywhere less than 14.99. This is my personal opinion. All the people have their own opinion, but I don’t, my price on my products anywhere under $ 14.99, and the reason why that is because, like I said all the expenses that I’ve just covered now, if your supplier, if The proffer, if, if your product costs $ 2 to $ 5 from your supplier, then price your product between $ 14.
99 and $ 19.99, that’s the bracket. You should go between now if you supply a price for that product as $ 5 to 30 days. All you need to do is times your suppliers price by 2. So, for example, if the product like again from your supplier is $ 10, then charge $ 20 or $ 19.
99 or twenty or twenty nine or 2099 mmm. The next one is supplier price. If your product that you’re buying from your supply of ranges from 30 to 50 dollars, then all you need to do is times that supplier price by a 1.
75. So, for example, if your product is $ 45 from your supplier, then you would just go into your calculator times by 1.75 and round up to the nearest number. So if it’s, for example, forty four point: nine something or forty four points.
Something then just round it up. The next one is supplier price. If it’s $ 50, but if it’s between $ 50 for $ 100, if that product you’re buying from your supplier, then all you need to do is times that price by one point, five again, if It’s $ 60 and you’re, going to your calculator type in 60 times it by one point: five and then just round up to the nearest one and, like I said guys, this isn’t an exact pricing Formula, this is just a broad one that I use, which really helps people out a lot now like I said this does vary dependent on the niche you’re in and how much perceived value those parks have got, and this is something that I’ll talk about in another video perceived value your product, so you could basically follow this form formula here.
But if your products got a higher perceived value than other products, then you could add a maybe an extra $ 5 $ 10 $ 3. But, like I said perceived, value is important. Now, how you find out perceived value is by asking the target market is by looking around and seeing how much other people are charging for it.
But that guys is the pricing formula that I really do recommend you use and, like I said it will vary, but that will get you off to a good start and it will make sure that you can pay for your expenses now.
Some bonus tips, like I said I’ll, give you some metrics that I’ll. Give you, in my opinion, and this stuff that I’m going to give you now, is what I’ve received through my whole journey, and he now certainly percent of my winners are priced between $ 14.
99 and $ 29.99. Now, the reason why is such a high percentage is because people don’t mind buying things online that cheap that 14 to 30 dollars. That is what we call cheap products: people don’t really people don’t, get upset if they buy a product for $ 20 and it’s, not as good as they thought it was they can get over.
If that makes sense, they don’t mind going on the internet and and because a lot of people are still worried if the internet scam, so people are more reluctant to okay, I can take a risk paying $ 14.99.
So there’s, a lot of reasons why why so, maybe some of my winners come from this kind of profit? Sorry if this kind of price range, like I said it’s because it’s cheaper and then 20 20 percent of my winners are priced between $ 30 and $ 69.
Point 99. Now guys. The reason why it’s 99 is because every time I priced my products always do 99 or, but I’m, going against that at the end of how I priced my products in terms of the numbers on how like is it $ 9.
99, or is it to $ 5.99? So I’m gonna be talking about that at the end of the video guys but, like I said, 20 %, my winners of price between 30 days and $ 69.99. Now the reason why that’s gone dramatically down is because I’m now asking for people for a lot more money, and if you’re, not a recognized brand like Nike or Apple or Microsoft or Jim shark, then People are going to question your authority.
People are going to question your pricing. People are going to question if you’re legit. So this is why it dips down. When you start to ask for more money. 10 % of my winners are price $ 70 or, more again, the reason why it’s such a small numbers, because once you start diving into high ticket items that are above $ 100, then again is it takes a lot more effort and it Takes a it takes a lot more work and it takes a lot more marketing efforts and it takes a lot more of building rapport with customers, so you can get them to buy online, so it’s really important that the reason why 10 % Of my winners are from certain does is because I have to spend more time building rapport and sometimes it’s.
Not enough now price points I always use are $ 14.99 or $ 19.99 or $ 24.99 or $ 29.99 and etc. They’re. The kind of pricing points that I use guys and they’re, the ones I do recommend. I know people are trying like $ 21.
99. They’re okay, but these are the ones that I’ve, seen the best results from when I priced my products. That kind of for me that I’ve, just given you there now. Sometimes I’ll. Raise my price after 20 sales or 30 sales.
Now, if I’m, if I’m, if I’m selling a product and I’ve got 20 sales to 30 sales, and the conversion rate is is good. I’ll, see if the conversion rate is at least 3 percent, then I will raise my price by $ 1 now guys.
This is so important, and this goes back to the first slide. Now you could be getting more money than what you’re already charging, and you would never know if you don’t use this tactic. So I only do this if I get 20 to 30 sells, because that means people are okay.
With my price, so people are buying twenty to thirty sales and my conversion rates at least three percent. I just basically means customers are okay. With with the pricing that I’ve, given them they can pay for it.
There’s, not an issue and, depending on how many abandoned carts you’ve got it all factors this equation. But if the evaluation looks good to me, I’ll, raise my price by one dollar because guys you don’t understand if you’ve not been there before when you scale, and you do thousands and thousands a week.
One dollar makes such a difference, and I just can’t express this enough. One dollar can make such a difference and if you increase so, for example, if you’ve got to buy $ 24.99 to $ 25.99 trust me the difference.
It can make when you ‘ Re scaling is ridiculous. So again, vivarium. If I’m, not getting those high sales or not getting a good conversion rate or I’m, getting a lot of abandoned carts. Then, while there was, I’ll decrease my product by one dollar and again going back to this again.
If I’ve increased my product by one dollar and I’m still getting twenty to thirty sells my conversion rates. Good my abandon cart rates. Good then I increase it by another dollar again now. Normally, when I do this, I can normally get about the most I’ve ever got out doing this formula is four dollars now guys four dollars extra per product? Oh, my god, the amount of them the amount of money it can make in terms of difference between the foreign and not charging the $ 4.
Oh, my god guys you don’t understand until you ‘ Ve done it so guys that’s, why? I really wanted to nail down on this key point here and again it’s. Vice-Versa, if you’ve still dropped the price and you’re, still, not getting sales drop it again by a dollar and obviously keep dropping it till it becomes a good amount.
You don’t, have drop your price too low, where you’re not going to be profitable and you can’t pay for the first. You can’t pay for the things I mentioned on the first five guys so again. This is a strategy that I use.
This is only a short video today, guys it’s, not a long video, but I’ve. Given you what you need to know on how to price your products, how to increase your prices to get more profit margins? So okay, said guys.
That is the end of the video today. If you talk value from this common value bombs or something, let me know, you’ve stopped value from this. Let me know in the comment section what you want to see next on my youtube channel, if you’ve, not already subscribed to my youtube channel for more content like this guys and like I said, if you want to enter the giveaway all you Need to do is comment.
Takeover 20:19 subscribe to the YouTube channel and like this video, thank you for watching my thank you for watching my video today guys and I’ll, see you on the next one.
DON’T make this MISTAKE that cost me THOUSANDS of DOLLARS because I didn’t know how to price my products
In this video, I go over how to price your e-commerce & Dropshipping products so you remain profitable and highly profitable.
A question I get frequently asked about in e-commerce and dropshipping is how much should my profit margins be.
Make sure to watch the video till the end to learn about how to price your products correctly and the bonus tips that I made with over 3 years of my experience in e-commerce & dropshipping.
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