![]() ![]() profit margin: the percentage of profit you want to make.cost price: how much you pay to make or supply the product. ![]() The basic selling price for your product is calculated with three numbers: Basic calculation for your product prices Think about how you want your pricing strategy to reflect your brand. A good luxury brand makes people say: “It’s expensive, but it feels worth it.” For a good bargain hunter brand, that would be: “I can count on the lowest price.” How you live up to those expectations influences how people see your brand. Start Now What does your price say about your brand? The ideal price point is where your customers think they get slightly more value than what they pay for. If your prices are exceptionally low, raising your prices might actually help you sell more. If your store uses much higher prices, customers might expect a quality level they are not willing to pay for. When customers compare different stores, they get a feel for the price range they can expect. Would you buy a pair of shoes for $2? Would you expect to get good quality? What about a pair of shoes for $200? If customers are willing to buy your product at 40 euros, will they also buy it at 45 euros? The value of a good deal Once your store is up and running, you can still experiment with different prices. You may not know how they have calculated their prices, but you can be certain that a successful store uses pricing that customers are generally willing to pay. Pay extra attention to competitors that have been in business for a long time. When you set your prices, have a look at what competitors are charging. How much are your customers willing to pay? It also means customers feel confident spending that amount. This sweet spot means every sale brings in enough margin to make it worth the cost of processing, packaging and shipping the order. Many successful online stores work in a price range between 40 and 200 dollars. The right price has to be high enough for you to make enough profit, but low enough that customers are willing to pay it. Start Now A comfortable price point for customers ![]()
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