You want to make money. That’s why you run a business. Whether you’re selling a product or a service—you’ll have to put a price on what you’re selling at some point.
It isn’t easy to price something. It’s where a lot of business owners get stuck and put an arbitrary number on their product that just barely turns a profit.
But did you know you can build a pricing strategy for your business that not only increases profits and also helps you sell more?
That’s why we wrote this post. We’ll lay the foundation for an effective pricing strategy by using psychological pricing tactics—your golden ticket to selling more.
I would advise not to bother with Chinavasion, just from personal experience. I did it for a few months and after you take into account the comparatively high eBay fees (which don’t take drop shipping into account and believe you’re selling the product directly), as well as returns from broken and lost items, you don’t actually end up making any money and can actually end up losing it, its really all in Chinavasions favour. If you really want to make some money and get into drop shipping, go to Alibaba and buy the items you were going to drop ship from Chinavasion and sell them yourself through eBay / shopify etc. That way you can go and buy 100 or so iPhone cases (just as an example) at dirt cheap prices and sell them for 100%-300% of what you paid for them and keep all the profit rather than just keeping the tiny difference between chinavasions prices and eBay’s market price. It may cost you a little bit in the beginning but if you find a popular product you’ll turn over your stock and make your money back plus much much more in no time at all.
It’s very good article as a marketer psychological pricing is only playing with the psyche of the people to lower the price for 1$ only is example.But if you offer the warranty and return back offer in case of technical fault or offering free repairs in case of minor defects then people will prefer you more than others because they think they are on the safe side.If you want to become the best seller keep your customers at the safe side,they will keep you at the safe side.
Great article! When I launched my design shop, I priced my products to $30.99. Now, since I rebranded the business and changed the way I work, I priced them to $30. It’s not really working out. Probably the platform I’m using is not working for me either. Back in 2013 when I was 17, I first launched the shop with Shopify, but when I moved to WordPress things got a little but tougher and sales never grew. I have a live site with Shopify and probably I will end up moving here.
Anyways, I think that pricing depends mostly on what you are selling. Is not the same selling a service than a product. I offer my services excluding the two digits since it gives a clear price for both of us ($150 for example). However, when it comes to products I usually do add two digits such as $30.99 or $30.50.
I have read dozens of books on pricing, pricing strategy, and pricing placement. I think you have summarized them here in your article in one page. I will be sharing this with our staff along with various other business owners who are struggling with the pricing issue.
Psychological Pricing Is Your Golden Ticket to Selling More | Shopify.