How To Price Your Products For Profit in 2024💰[Dropshipping]
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- Опубликовано: 25 авг 2024
- How To Price Your Products For Profit When Dropshipping 🚀 Free Training Webinar + 500 Product Ideas: dsl.life/BJCX2... ⚠️ Subscribe now for dropshipping training: dsl.life/yt-su...
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In this video, I explain how to price your products to ensure profitability when dropshipping.
I also share the equation that I use to determine how profitable my products are BEFORE adding them to my stores.
Here is the profit margin example from the video:
MAP = $1,000
*.97 = $970
- COGS ($500) = $470
- AVG Shipping ($150) = $320
We then factor in if we're going to spend money on ads, and how much we can spend while still maintaining our profitability.
If you got value from this video please give it a like and comment "PROFIT" below!
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Anton Kraly is a serial entrepreneur with over a decade of experience building online businesses, including Drop Ship Lifestyle, the “Best eCommerce Course” as voted by Shopify. He’s helped over 10,000 students find freedom through entrepreneurship.
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Nice vid Anton. Im currently running a high ticket store and needed this badly
Glad I could help!
Profit. Thanks Anton - fav tip was the negotiation of wholesale cost. I’ll do that 👍
Awesome! This is a great time do it too (going into the busiest shopping season of the year). Check out this podcast I just recorded that shares some tips for how/when to negotiate: www.ecommercelifestyle.com/sales-strategy/
@@dropshiplifestyle thanks again Anton, I will check that out!
profit! thank you for this, I wrote everything down in my notes
You're so welcome!
Profit!!
Great advice Anton as usual! Thank you and please keep doing these videos- invaluable!
A realistic video talking about the margins
Thank you. I learn a lot by just watching this short video. Learning more about dropshipping!.
Dear sir your video is very interested thanks you so much You are doing a good job
Thanks and welcome to Drop Ship Lifestyle
Thank you Anton. I really appreciate your videos. I hope you make billions of dollars in return from your splendid generosity!
Profit !! Thanks Anton ! Definitely needed this video for the holiday season !
That was really helpful thank you
Glad it helped
I am thankful for this video. Out of fear of undercharging I end up overpricing.
Profit!! Thank you
You bet
You are so good. Please for dropshipping from China, how to one calculate cost of shipping?
Profit! Building my first niche store
Thank you so much you help a lot with confusion and you explain things very well
Thanks for this video. Thanks for all your hard work.
My pleasure!
Profits profits profits. Thanks 🙏
You're welcome, Jean! 📈📈📈
Profit, really helpful.
Glad you think so!
thank you antonny
from morocco
Profit baby Profit!
Thank you very much Anton!!!
Profit! Thanks Anton. Do you have a video on an actual order process? For example, order comes to you from your website (notified by email?, then what?)
Thanks a lot.
Loved this video! Thank you!!!
thank you for the informative video
subscribed
Thanks Anton. I got tons of value from the video.
Great to hear!
PROFIT!!!!! (and SUBSCRIBED).
of ti...cheers!
The problem is my supplier raise my dropship product price without I notice! When a customer order that product! I lose money!
Great Information Anthon!
Glad it was helpful! And just and FYI, it's Anton 😎
How much of your profit do you reinvest back into your business ? Like what percentage is the normal range for dropshipping ?
Thanks to u sir am a new person here.
Profit. I only have one supplier and I want to open the products but I want to get this right first. I'm listing all my products and their % to see what I can up sell. Need more suppliers.
Hi Anton, I am still waiting for a Video covering a B to B dropshiping from outside the USA
Thanks so much. I actually started running a store and the product actually costs $19 and I set it on the store for 39.99 but was just getting add to carts but no sales and then I'm considering reducing the price to 29.99. CPA around $8 what's your take on this... Thanks in advance
Profit-Thank You
Thanks Anton !
You're welcome, Courtney! 🙌
Profit
You have gained a new subscriber 😁😁
Welcome aboard!
Profit +++ Thx for your dead easy Math to calculate shipping costs within the EU, all across Europe and anywhere in the world.
Anton, what if my supplier doesn't give MAP prices for certain products? How would I price products with just the wholesale price? Double the wholesale cost?
Hi thanks for the explanation, I’m building a store but really confused on the pricing I will be importing to store from Ali express Zopi I don’t have any products of my own to sell but I’m already paying £40 a month for the store and I haven’t sold anything because it’s not up and running yet , if I’m importing a product that they got for £10.99 what would be the best equation to break it down for profit as in this video, any advice would be appreciated thanks 🙏
Pure Gold!
One concern I have NOT seen ANY Dropship 'expert' comment on : since Amazon will penalize / suspend a seller for not being able to fulfill an order or delivery within a specific time frame - it is VERY easy to have an issue with the supplier (who is fulfilling the order for you) if they run our of inventory or do not delivery on time. How do you get over this major hurdle?
Don't sell on Amazon. Pretty easy.
Profit, Thank you for the tip
Well presented. Thanks. If MAP is $1,000, this means we can’t sell below this? and we can not sell above MSRP? So our price should be between MSRP & MAP, is it correct understanding? Kindly advise. Thanks.
So you wouldn't be able to advertise the product below $1000, but you can list it for as much as you'd like.
Profit, thanks for the information
Profits!
Hey Anton, I’m a new sub to your channel, I also finished watching your webinar. Thanks for all the info.
Quick question. I’m sure it obviously helps to have some familiarity and knowledge about a niche to create a store in, but would it be unwise to open a store in a niche that you may not be as well versed in, using your criteria, if there was an opportunity and interest in that niche?
Yes.
Passion doesn’t equal profit
Profit! Thanks Anton🤓
Super Great Video I have a question what if I can't get approved by one of the main suppliers, should I move on to another Niche, or keep trying?
Keep trying! One of the reasons I recommend finding at least 20 suppliers for your first store is because they will not all approve you from Day 1. You can start with what you get, then circle back and get approved with the others as you grow. I talk more about this in a training I put together here: www.dropshiplifestyle.com/webinar/ I hope that helps!
so u have to contact suppliers in multiple niches before buidliding a store. Asking what best selling products are. So u can have 1 high ticket prod minimum and others to up-sell. Or must u have a store 1st
Hey Alex! You can check out our free training webinar for more info www.dropshiplifestyle.com/watch 😀
3:00 Why is there an expense for wholesale? I thought with dropshipping you don’t hold or buy physical inventory, so you don’t have a wholesale fee. Is that not the case?
This is the price you pay for the product AFTER you get the sale. Hope that helps!
Hey thanks for the video. you estimated advertising cost to be 10% of selling price. That would mean our ROAS has to be 10x. That’s a very unlikely scenario and a rare occurrence. Not sure if I’d pick a product and bank on 10x ROAS to be profitable.
You're welcome, Zohaib! To clarify, 10X ROAS is not unlikely with our business model. We run very targeted shopping ads that only appear to people who are searching for the products we sell. The searchers see an image of the product we're selling, the price, and any discounts/offers that we're promoting before they click through to our site. If we were just running direct response ads to cold audiences on FB and going for 10X ROAS then yes, that would be hard to achieve, but that's not our model.
Nice info
Glad you think so!
Do you ever use shipping services that supplier offers? Or is it always cheaper to get a quote with freight?
Hi, Earthly Comfort Home! Anton discusses shipping in his training. Join us today and don't miss the chance to learn more! Click here to register: www.dropshiplifestyle.com/learn/.
- Myra
I am a product developer and I just paid a guy around $300 for a marketing report on Fiverr, and his numbers are way off lol, the only accurate part seems to be the estimated units sold per year.
For example I have fridge/freezer specifically designed for camping in minivans and Sprinter vans. He said the manufacturing costs could be $600, and his suggested retail price was $1000
But if a rooftop camping tent for cars, jeeps ect can cost...........$3000, then what could be the manufacturing cost this product? $1500?
Then how the heck could my product, which is more involved, cost only $600 to produce?
So is the markup for these type of products 50%.....%100.....or what? Please give some insight I'm very confused!
Can we sell for more than the Minimum Advertised Price, afterall it's just the minimum price, or does that out price us from the market?
Market research!
When you say wholesale cost?
They might want the buyer to buy it bulk in order to get the wholesale cost right!?
I notice also that a lot of companies charge extra to dropship! What can you advice about that?!
When I say wholesale cost I am referring to the actual Cost of Goods Sold (COGS). This is the price you pay for a specific item from your supplier(s). With the suppliers we work with (that are drop ship friendly) there is no order minimum as they expect to drop ship for us. Regarding suppliers that charge extra fees, I consider these Bronze Suppliers and I typically do not recommend working with them. I cover this in more detail here: www.dropshiplifestyle.com/webinar/
I hope that helps!
@@dropshiplifestyle thank you so much!! It did help! I’ll be watching the webinar
What if the MAP and WHOLESALE is in the same amount how would u price the product
Hello! Can I ask you which is the best platform for building a website? Thank you!
For eCommerce, we recommend Shopify. 😀
@@dropshiplifestyle Thanks for your recommendation!
If your Listing Price is $12 and Retail Price is $90, then what should be my Final Price for the end Customer ? Pls explain. What Formula should I be using ?
Profit a lot of insight.
We're happy to hear that!
- Myra
PROFIT!
Thanks for the video! I am looking to get into ecom. But if I am not mistaken this equation does not count in that one has to spent the product price for the next sold item. So if one gets $200 in net profit, but the cogs is $500, he is left to pay $300 upfront, just to cover the cogs for the next item. Which he ultimately does not make back in profit at any point. Or am I missing something? (it is late so excuse me if I did lol)
Makes sense if ur buying upfront...but in dropshipping u pay for product only after u get a sale so there it's not required
I think how it goes is :
1st round : cogs 500, profit 200
2nd round : cogs 300 (reinvesting 200 from round 1) hence utilizing all capital from round 1
3rd round we get MORE profit in equation as our cogs went down to 300 instead of 500 with pretty much no out of pocket money (since the remaining 200 was profit and was gained in round 1)
So round 3 will have profit at 200 (savings after reinvesting the original 200) + 200 (profit for this round) = 400
Round 4 : cogs go down to 100 as we reinvest 400 entirely from previous rounds. So we get 400 for free (previous rounds profit) + 200 profit
Profit is 200 from round 1 (original equation) as well as regaining 400 (as it's never from our pocket)
Round 5 : cogs is -100 since now 400+200 is reinvested entirely from previous round and so our profit increases by 100 every round so on n so forth
This is the best i could come up with 😅
Profit ♥️
Are shipping costs always that high??
Question: Do you find that suppliers are willing to provide wholesale cost and MAP prior to you building the website and committing to sell their product? If not, how do you find this information in advance to make an educated decision?
No they’re not willing..they guard those prices pretty well
im running a dropshipping store with sourcing products for dser but i have no idea, how to look at the profit ill earn per product, this is very confusing i need help
Anton's approach emphasizes working directly with domestic suppliers rather than using third-party services like DSers. Sourcing products locally ensures faster shipping times, better product quality, and more reliable inventory management. He covers this strategy extensively in his free training, so don't miss out! Click here: www.dropshiplifestyle.com/learn/.
- Myra
Can you do a video on how to find sellers that aren't on shopify?
Hey Tchaikovski, when we do our research we're not looking only looking for Shopify stores. We look for all online retailers. If you're a member of Drop Ship Lifestyle you should check out Module 2 of the Drop Ship Blueprint: courses.dropshiplifestyle.com/. If you're not a member, you can check out a free presentation that I put together here: www.dropshiplifestyle.com/webinar/ I hope that helps!
I think you missed the shopify fee. 20 bucks I guess
Profit 👍🏽
Profits
Profit!
Hi Anton, I'm a DSL member I don't believe there is any mention of this formula anywhere in the blueprint? It would have been helpful to know this before uploading suppliers that don't meet the criteria in this video. I spent a lot of time uploading supplier and $ on ads that I thought was a 'gold' supplier. They are roughly 65% of MAP not 100%. Really frustrating.
Hi Michael, Sorry to hear that! This is covered in detail in lesson 0.1 of the Blueprint: blueprint.dropshiplifestyle.com/topic/foundations-of-ecommerce/
@@dropshiplifestyle
Thanks for the reply Anton. The module 0.1 covers a lot but I don't see your suggestion of MAP price should = 2x wholesale cost. I could be missing it.
If the suppliers are suppliers are unwilling to to give a better wholesale price (MAP = 2x wholesale) should I stop using paid PLA for those suppliers?
Hi Anton. I have a company in the UK. Do you think that I would have any trouble with getting US suppliers without a company in the US? As I am a Hungarian citizen, forming a company in the US is not ideal for tax purposes. I would like to know the answer to this before enrolling to your course. Thanks.
Hey Mihaly, we'd love to help you with this! Please send us an email at support@dropshiplifestyle.com, so we can discuss your concerns. :)
I have seen the Super Tan brothers conference talk on dropshipping, they are very successful dropshippers selling 8 figures store, it seems there are still many dropshippers sourcing from China still don't offer free shipping. So I'm not sure how true is your claim that everyone is offering free shipping these days.
Hey @Jeremy, I've spoken with them at a couple different meetups and I believe they sell inexpensive products and sell to many different countries. We sell expensive products (AOV of $1,000+) and only ship to the countries in which the products are warehoused. It may be that they and their competitors charge for shipping, but with our model that is not the case.
How do you find the map on a product, by contacting?
Yes..if accepted as a wholesaler they’ll usually list the map pricing on the brochure
Profit
So not paying tax then?
profit
Profit for sure.
💰💰💰
Don't forget, you still have to account for sales tax!
Yes, but customers pay that and you just pass it along :)
Hi Anton. Just set up a business using the dropship lifestyle blueprint but google permanently suspended my merchant center account for misrepresentation when I attempted to list supplier's products. Is this a new development in google's crackdown on dropshipping?
Sorry to hear that happened to you! Here are some tips for how to avoid this and how to get it back: ruclips.net/video/tbqpG1mY4kE/видео.html
Hey Anton, i have a few suppliers that do not enforce MAP. Should i even list their products on my site? I'm in DSL so im dealing with high ticket items here.
Send us an email at support@dropshiplifestyle.com, and we'll help you out!
🤙🏾
Can you not just increase the MSRP or MAP?
You can... But the reason you don't is because if you have 1,000 dollar MAP and raise it to 1200. While all your competition is selling it at MAP no one will buy from you...
@@theman6910 but if you are in a country where your competitors are not selling from the same supplier?
@@face-in-the-crowd I mean you can try. If you are the only one selling that product... But generally you will be under cut.
@@theman6910 ok I'll try and see, it's the only way I can do it as I have to account for freight costs and customs charges
Thanks
@@face-in-the-crowd to put it simply if someone is selling the same product... They are using the same supplier otherwise it's not the same product...
And that supplier will enforce you both the same.
You are losing out on trying to profit from this., because people are not going to pay $50 for a tee.. and that’s the only way you can see a profit., and that’s only making $8… so it’s like going backwards..you’re losing more than you’re making.. printful charge customers shipping and they are charging me to for them buying from my store..
Given the fact that advertising requires $33/day roughly then this business model your teaching will only work if you are selling products that are quite expensive because the cheaper the product your selling the greater the percentage of your profit margin goes to advertising. e.g. if I sell a product at $100 and I'm left with 32% profit, i.e. $32 then after advertising ($100) I'm at a loss for $68. I mean just because a product is cheaper to sell the advertising of the product still remains roughly the same, i.e. $33/day. It seems that any product under $500 wouldn't give you a profit if roughly $100 goes towards advertising. Have I misunderstood something here because your business model seems to only work for products which sell for over $500...
Hi there! We recommend selling high ticket products, and Anton covers this in detail in our free training: www.dropshiplifestyle.com/watch. We look forward to seeing you soon. 😃
Our average order value is >$1k. You can check this video for more info: m.ruclips.net/video/n3HVrAe1j6A/видео.html
@@dropshiplifestyle I watched the video high ticket items vs low ticket dropshipping. In video Anton says high ticket products are those over $200. Is it possible to make a profit with his business model with products over $200 because I'm more comfortable selling items $300 or $400.
i am the 1,100 liker lol
Hi Anton, your contents are really good and I hope we can talk I sent you an email last November 14 please check :)
So are drop shippers supposed to be putting a 100% margin on all products and still be able to keep up with Amazon and other suppliers or is this just for mapped Products from Suppliers? And does Ali Express have mapped suppliers? Or is this for when we go out on our own looking for direct suppliers?
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