how do you price your dropshipping products?

PBNSurprise

Elite Member

Jul 22, 2015

2,682

1,780

• May 4, 2020

• #1

i'm looking for replies from advanced members only please. only people that are running profitable dropship stores.

how do you price your products? do you have a general rule like 3x mark up? or do you try to aim for a certain break even cost per purchase or ROAS? or do you just select the sales price based on your feeling of how high you can price it?

thanks

 

uncutu

Elite Member

Aug 6, 2010

3,506

3,374

• May 4, 2020

• #2

minimum 3x markup

 

IG Professor

BANNED

Feb 22, 2017

4,855

4,567

• May 4, 2020

• #3

10-15% For break-even to cover fees + 20% profit.

 

Monzani

BANNED

Jun 3, 2019

1,509

2,082

• May 4, 2020

• #4

3x

 

PBNSurprise

Elite Member

Jul 22, 2015

2,682

1,780

• May 4, 2020
• Thread Starter Thread Starter

• #5

uncutu said:

minimum 3x markup

Click to expand...

i've heard 2.5x markup is acceptable. 3x sounds good, what's your thoughts on 3-3.5x markup, or is it too much?

IG Professor said:

10-15% For break-even to cover fees + 20% profit.

Click to expand...

can you explain this? how much mark up do you do?

 

uncutu

Elite Member

Aug 6, 2010

3,506

3,374

• May 4, 2020

• #6

something you need to personally play around with
one day set to 3.5x+
or rotate 50% traffic to a landing page that has the item priced at 3.5x+
and compare that to the revenue accrued from the initial price point
decide from there....
experimentation is the name of the game

 

PBNSurprise

Elite Member

Jul 22, 2015

2,682

1,780

• May 4, 2020
• Thread Starter Thread Starter

• #7

uncutu said:

something you need to personally play around with
one day set to 3.5x+
or rotate 50% traffic to a landing page that has the item priced at 3.5x+
and compare that to the revenue accrued from the initial price point
decide from there....
experimentation is the name of the game

Click to expand...

yeah i guess. really want an easy answer. but the only way to get an accurate answer is to test it. try with 3.5x mark up one day, and 2.5-3x mark up another day. then compare, whichever one has higher profit margins is the answer

are you pricing all of your products at least 3x? i guess that's a decent baseline. for really expensive products that could backfire though. anything that costs more than $20, it may be hard to justify over $60 sales price, depending on what it is