Now that you have a supplier in mind, compare your supplier’s base price to the product prices advertised by other online sellers. Can you offer a similar price and still make a healthy profit? With Spocket, you can easily calculate potential profit by entering your expected selling price. You’ll then see the profit margin you have left after paying the manufacturer and can adjust your price accordingly.
Remember, when setting product prices, you need to take into chinese overseas canada database account the wholesale product price, shipping costs, taxes, and marketing expenses. So, with these figures in mind, profit margin.
It goes without saying that if you set the prices of your products too low, profits will be negligible. Also, new customers may wonder why your products are so cheap and avoid them in case they are of low quality. However, if you make the mistake of pricing your products too high, you will lose customers to your competitors.
Before setting your prices, calculate your minimum retail price based on how much your wholesale, shipping, tax, and marketing costs are. Then evaluate your competitor's prices to guide your pricing strategy.
It's also important to understand your buyer market. For example, how much are they likely to spend? What are their browsing habits? And so on.
You can gain this information through advanced website analytics or by researching your competitors. You could even conduct a survey with your target audience and talk to potential customers through Facebook groups and forums.