PRICING THE ITEMS ON YOUR STORE – Shopify Drop Shipping Tutorial
How should you price the items on your store? Is there a few rules of thumbs you should follow? What about psychological pricing? I’m going to talk about this in this post.
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Pricing the items on your store, the right way
Is there a rule of thumb when it comes to pricing the items on my store? The answer to that is no. Not in my case anyway. In my opinion It really comes down to your market. What are the products that you’re selling? Is it low end, high end? Are you trying to position yourself as the best in your category, or are you trying to be seen as the cheap version?
In the end, you just need to test this stuff because each market is different.
Let’s say that you sell necklaces for example and you sell them $70. Now imagine that all the competitors in your market are selling the exact same thing for $20. Well, I mean, chances are high that people are going to buy these necklaces from your competitors and not from you unless you do your marketing in a way that the products, the pictures of the product, are better on your website. You could try to market these necklaces as the originals, something like that. You would want to add some perceived value to your products…
If you do that, you’re going to be able to sell your products for much higher… But what I’m trying to say is that it depends of what your competitors are doing. So there are no rule of thumbs because even if I tell you, “Oh. You have the product on Ali Express, multiply that number by five, and that’s how you should sell your product.” IT DOESN’T WORK THIS WAY. You have to be aware of your market also.
If you are the only one in your market selling your products, then just test different price point and you will see soon enough what works the best. Test different things until you find the sweet spot, the price where it clearly sells the best. I usually like to start with a high price, and then lower the price until I find something that works well!
Again, there are no simple rules of thumb for this. Even if I told you : ¨ take the Aliexpress price and multiply it by two¨, it might be true most of the time but in some situation this won’t work because your competitors will be doing something completely different.
And another question that I get asked often is: What about psychological pricing? And my answer to that is you need to test it too. Psychological pricing is stuff like, let’s say you want to sell your product for $30 dollars. Is it better to sell it $27? $29.99? $29.95? These are the kind of little details that make a little bit of difference, but doesn’t make a huge difference. Don’t expect that if you sell your product $29.99, you’re not going to make any sale. And then if you put it at $29.95, you’re going to make thousands of sales. It really doesn’t work like that.
In the end, people want a good offer. If what you’re offering to people is good, if you bring value to the table and you market the product in a way that, when people see their product page it’s a no brainer to them, they’re like “Oh yeah. I’m going to buy it¨, then you are going to sell a lot of units.
I know that there are a few marketing blogs out there that want sell you the idea that just by changing from $29.99 to $29.95 or $29.97, you’re going to increase a conversion rate by 5,000 percent, but that’s a lot of crap. I’ve tested a lot of stuff and it doesn’t make a big difference. It makes a difference but it’s not that big.
So to recap, you want to be aware of what is going on inside of your market. How much are they selling their products? Why would someone buy from you and not the other people? Also, don’t focus too much on psychological pricing…If you really want to sell a lot of units, focus on putting a high quality product in front of the right audience and you will sell a lot of units. Also, make sure to give them a great offer!
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Please leave a comment below or let me know any questions you have. I’d love to hear what you think!