Selling items online and how you should price them

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Selling items online and how you should price them

When you're selling something online it's always hard to figure out an exact price of what you should list your items at. It's hard because there is so much competition out there trying to fight for the sales that if you price your items too low you won't make money and if you price it too high you won't make a sale. Getting that sweet spot is what you're targeting and it's not always easy. People selling something they made themselves have it even harder because you can't really compare your brand to something another person made because there are so many variables.

Research Research Research.
Whenever I'm planning on making something I always do research on my competitors prior to diving in. Soon I'll be having another physical product coming out and before I started making them I did my competitor research for around 3 months. You'll need to figure out various things about your competitors as well as your own system.

A few things you need to research

  1. Are your competitors a major company or a mom and pop shop.
  2. Do your competitors pay for ads on Adwords, BingAds or facebook ads.
  3. Are your competitors paying websites to have their banners placed on all the pages.
  4. Can you increase the quality of the competitors item.
  5. Can you get high quality material for a cheap amount by purchasing in bulk (if you need material).
  6. Can you purchase something you're already making, but for cheaper and then rebrand the item and sell it.

The above points will help you identify if you have a competitive market, if it's worth it to get into the niche, if you can invest a little bit of money to produce one item at a time or if it's easier to just buy a premade item and rebrand it. These are some simple bullet points that I go over anytime I plan on making a product and selling it online.

How to price an item
After you get an idea of what you should be pricing an item, you now have to get in the minds of your buyers and figure out what will work best. Some people swear on charging $XX.99 for their items but I've seen a log of people doing $XX.97 or $XX.95 and even $XX.93. I personally like selling everything for $XX.95 because I just like that number better, but you can play around with this and figure out exactly what works best for your audience. Now the only downside about this is that you'll need loads of data because you could have a good week in sales when at $XX.99 and a bad week when at $XX.97 but it could just be because of the amount of traffic you were getting. What you would need to do is focus on the conversion rates, if your traffic is steady everyday then it's easier to track, but that's not always the case. If you're converting at 5% when at $XX.99 but converting at 7% when at $XX.95 then obviously the $XX.95 would be better. If you focus on how many sales you're getting when at a specific number then you won't get the best one and you could just be leaving money on the table.

In conclusion, you need to do your research prior to launching to ensure you're in a good niche. If you don't do your research then you might be disappointed when the sales don't start rolling in. You'll need to price your items the right way to increase your conversions and it takes time to do this right, so be patient.

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XX.8 always seems like a better deal for me, I know how to spot the nines and I immediately think to myself, well this is a marketing technique, I'm not going to fall for it. So basically anything that doesn't contains nines is fine with me.

Anyways, I really like you guide Razzy and I agree, research is everything, you can't stay a step in front of your competitors if you don't do a proper research first.

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The numbers are always evolving, maybe the people who are convincing you with 8's are the new trend Selling items online and how you should price them I may just start selling something at $XX.88 to see what happens Selling items online and how you should price them

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When I was in grade school, my mother would bring me along when she goes to Manila to buy clothing or shoes during the Christmas season. I had noticed that the tag prices of such items always ended in .95 as in 12.95 or 24.95. When I asked my mother why so, she couldn’t give me a clear answer. When I went to college, our professor in salesmanship explained the psychological effect of such digits as ending for tag price. Well, 12.95 is definitely cheaper than 13, right? And I had to agree to that.

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before you price your products, you should always check what your competitors are pricing for the similar products. Your price should be always less than your competitors' price. having a decimal in your selling price is a great attraction. Having product priced at 9.88 or 9.95 is always better than pricing it to $10. If the customers buy a single product, he might not save much, however, think this in bulk sale. If the customers buy 10 products, he will be saving more.

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Pricing a product to me always depend on the market forces of demand and supply and the competitor's price.The product owners should take into users buying power and how much his or her competitors is willing to sell and peg the price within that range so as to compete favorably with the market price.

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For me, pricing a product depends on the competition on the certain market or online platform you use, I really look at other competitors products and see how those same products are priced and I will lower my prices so that people will buy my items more than the other competitors.

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