Samiksha Hiwase | 15 min read | July 22, 2020
1. Quickread
Setting prices for your products sometimes can be easy or difficult. Setting prices is a very high cost, and you will miss out on valuable sales. Setting prices is a very low cost, and you will miss out on valuable revenue. That means you have to set prices accurately. Pricing your products is one of the foundation decisions you will make because it impacts every aspect of your business.
Your pricing is a deciding factor in everything from your cash flow, to your profit margins, and also covers your all expenses. There are many pricing models and strategies that can help you to a better understanding of how to set the right prices for your customers and revenue goals.
That’s why in this blog, you will get a detailed guide for points to be considered before pricing your products, how to price your product, the reason behind a pricing approach, know about pricing strategies and types of pricing strategies.
2. Points to be Consider Before Pricing Your Products
Before pricing your products, you must know about what are your business expenses. You required the layout of what are your expenses will be for the next few months. You should also take any unexpected costs into the calculation of expenses, so feel free to increase your total expense number by an extra 10%
Here are some costs to consider:
- Wholesale product cost
- Shipping costs
- Advertising/Marketing costs
- Recurring monthly fees (Shopify, Shopify apps)
- Website fees (store theme, logo design)
When you set the price of your products you should take the number of what percentage of discounts you want to offer. How much money do you plan to make? If you are dropshipping products there will be no benefit.
You should make a profit. So, consider an industry standard for the products you are selling.