Princing rules discussion

[Doug]

Hey guys, I opened this thread so we can discuss about product prices strategies..

Is there somebody using the rules below and working good? Did you adapt it?
$0<Supplier Price<$1= Your Price: $7.95
$1<Supplier Price<$5= Your Price: $9.95
$5<Supplier Price<$30= Your Price: Supplier Price x 2
$30<Supplier Price<$50= Your Price: Supplier Price x 1.75
$50<Supplier Price<$100= Your Price: Supplier Price x 1.5
Price>$100= Your Price: Supplier Price x 1.35

Is there somebody doing defferent and having good results?

 

[hunybuny2]

I've not yet launched my store yet but I am in online business for quite some time. Here is how I suggest that you should do it.
Almost all the products which are available on Aliexpress are also available in some form on Amazon and ebay. So, before you set your price formula, determine the price difference between all the product.
For example, I saw a knife on Aliexpress for 5$, same knife was available on Amazon for 30$ and on ebay for 25$. So, now if you set your price to be 50$ for that knife, definitely no one is going to buy that once they are getting cheap items from such a huge store with 1-2 days delivery time. So, I've kept my thumb rule that whatever profit margin I get, I'll keep my prices half to what Amazon and ebay etc offer. This way, once I advertise on different platforms, people will know that they are actually getting a cheap product that too with free delivery. So, talking about same knife, I can keep my price for this knife to be around 12-15$ max.

This was just an example, just visit all 3 sites and check out the difference and then make your own formula. There may be chances where you may be earning very less profit on some small items, but you can compensate same on costly items.

 

[Doug]

I've not yet launched my store yet but I am in online business for quite some time. Here is how I suggest that you should do it.
Almost all the products which are available on Aliexpress are also available in some form on Amazon and ebay. So, before you set your price formula, determine the price difference between all the product.
For example, I saw a knife on Aliexpress for 5$, same knife was available on Amazon for 30$ and on ebay for 25$. So, now if you set your price to be 50$ for that knife, definitely no one is going to buy that once they are getting cheap items from such a huge store with 1-2 days delivery time. So, I've kept my thumb rule that whatever profit margin I get, I'll keep my prices half to what Amazon and ebay etc offer. This way, once I advertise on different platforms, people will know that they are actually getting a cheap product that too with free delivery. So, talking about same knife, I can keep my price for this knife to be around 12-15$ max.

This was just an example, just visit all 3 sites and check out the difference and then make your own formula. There may be chances where you may be earning very less profit on some small items, but you can compensate same on costly items.

Thanks it sounds good hunybuny2.
So, investigate and put the price for each product is the best way to have a competitive price and get the best profit possible.
Problem is that it just add more effort and take more time to upload the products, but I am thinking about to follow your advice.

I also think about to use the automatic pricing for fast upload, and then set the price and description one by one when the store is running.

 

[Doug]

I am doing like this right now, trying to keep around $10+ markup for product.

 

[hunybuny2]

That is also good enough. However, you have kept a lot of profit margin in small items. Like items sold for 1-1.5$ on Ali express are sold for almost 10$ on your site. However, same products may be available on Amazon and ebay for may be 5$.

Also you need not to visit all the products which you import. You just need to check 10-15 products. This way you will have idea of the general price difference. Then you can make your formula.

For small items like 1-2$, my advice is keeping a profit margin to not more than 5$. So, then it will be $1(actual price)+2$(delivery charges)+3$ profit = 6$ final price.
But once again, its your store, you can set whatever price you feel is feasible.

 

[Thirsty Storm]

That is also good enough. However, you have kept a lot of profit margin in small items. Like items sold for 1-1.5$ on Ali express are sold for almost 10$ on your site. However, same products may be available on Amazon and ebay for may be 5$.

Also you need not to visit all the products which you import. You just need to check 10-15 products. This way you will have idea of the general price difference. Then you can make your formula.

For small items like 1-2$, my advice is keeping a profit margin to not more than 5$. So, then it will be $1(actual price)+2$(delivery charges)+3$ profit = 6$ final price.
But once again, its your store, you can set whatever price you feel is feasible.

Following your advice i've checked couple of items (make up) to compare prices between Amazon, Ebay and Aliexpress and i was surprised that items in Aliexpress is more expensive (x3) than the other two stores! i guess in Aliexpress most of the stores reselling each other items...