Want to know what holds people back from having a successful online store? Often, it’s that their prices aren’t right.
When we start working with online store owners, the first thing we do is look at their numbers to determine if they are running a business… or if they just got themselves a hobby.
Unfortunately, most of our students and clients realise that they aren’t charging enough and that they fall into the “hobby” category.
In this episode we talk about why you absolutely must know your numbers, what metrics you should be measuring and the benchmarks we like to aim for and how to make sure that your prices are set so that you are running a profitable business. We let you in on a few secrets around pricing including value perception, why a bargain hunter will never become a loyal customer and how to work out what your prices should be.
If this is your first time listening to our podcast, welcome! On our podcast we share practical and actionable information around how you can sell more on your online store. We also interview some eCommerce powerhouses and take you behind the scenes of some of the most successful online stores.
If you’re ready to sell more on your online store, this is the podcast for you.
- The mistake of not knowing how low your margins are [02:10]
- Price perception: selling a brand vs selling a commodity [03:24]
- Calculate your expenses, both variable and fixed costs [06:36]
- Aim for an 80% gross profit margin [09:00]
- Putting discounts and shipping fees into consideration [11:46]
- Including the year-end tax and the GST to your prices [14:20]
- Never adjust your price according to the bargain hunter’s needs [16:51]
- Stop asking people to put a price on your products and services [18:42]
- What makes pre-selling a great pricing strategy? [20:58]
- Always follow through with excellent customer service [23:22]
- Own your price! [24:24]