While selling physical products, I typically add a profit margin of $2-$5, or not more than 20 percent. When setting the selling price, I also take into consideration of my competitors' prices to stay competitive. Whether I sell through dropshipping, print on demand or from my inventory, this is the pricing strategy I use. I set a little higher margin for niche product and lower margin for general product. How do you price your products?
Pricing Strategy For Selling Physical Product
- Thread starter nomad
- Start date
When setting price for a product, you need to consider several factors. The cost of producing the product, the price set by your competitors, and how you would like your customers to perceive the product. In the latter case, do not think that very low price may attract customers. They may worry about the quality of your product if the price is too low.
When pricing a physical product, it is wholly about the cost of production to be able to determine a profitable point.
