How to Set Product Prices?

Well, you want to set prices in a way that it minimizes the way it looks…

Of course, we all know products priced at $9.95 is the same cheaper than a product priced at $10. That’s just a psychological price point. If you don’t know, the eyes need to look that up, that’s fairly simple.

There are also some numbers that just seem to work better than others. I haven’t personally tested this but people like 27, they like numbers with 9, 7, and 4. It’s what I’ve read, what I use myself. There’s a price of $23 which seem a lot weird. A price of $24 just seems normal.

I really encourage you to try Free + Shipping as much as you can. Anything that’s priced under $10, I don’t have a normal offer.

I have a Free + Shipping offer. Of course, if you’re selling a lot of products, then you’ll want to test this. until then, I will just follow the best practice, I’ll go with Free + Shipping.

Again, you’re not trying to compete on price.

You can’t compete with Amazon or whoever the big cheap suppliers in your niche. You just can’t.

You’re trying to compete with marketing, you’re promoting your products better, you’re selling them better, you’re running better ads, you’re focusing more time on selling each individual products because you’re only promoting 2 or 3 at a time, unlike Amazon which is selling thousands and thousands of products. They don’t have the time to really pour their energy to promoting whatever stuff or cool gadget you’re selling on your dropshipping store.

Of course, when you’re talking about product pricing, we also have to talk about margin.

So, I like to set margins at $7 per product. So, that’s just the minimum. Sometimes I’ll have more for selling a product for $25, $35, $45 then I usually have a slowly increasing profit margin on that as well. But in percentages, the product margin actually is not as big.

There’s one thing you have to keep in mind, people who want to move away from Free + Shipping to high ticket items, you have to remember that often in percentages, your profit margin will be higher on Free + Shipping. So you might have a 5x mark up when you’re selling a $2 Aliexpress item for $9.95 Free + Shipping. That’s a 400% or 500% of profit margin.

I am not quite sure of what you based on but that is more anyway than a $12 profit margin if you’re selling a product for $37.

So if you buy it for $25,  selling for $37, you might think that’s a higher profit margin but actually, in percentages, it isn’t and honestly, the percentages are what’s relevant and not the actual dollar amount because it’s harder to sell because it’s a high ticket item.

So, keep that in mind. Profit margins on Free + Shipping are actually not that bad.