How To Price Your Products For More Profits

How To Price Your Products For More Profits

Pricing products has one method per businessman, and since it can be quite confusing, I’ll show you several approaches that you can apply today.

Pricing your products isn’t to be taken lightly. I always say it’s part of your marketing, and there’s little to gain from paying ads if your prices can’t afford them or if people don’t want to buy them.

Pricing low might seem ideal, but remember you need to cover your products, business expenses, and still yield a profit. That’s why you need to experiment and find the sweet spot.

Imagine you find a product for $4. Pricing it at $10 might get you lots of sales, and it’s a $6 profit on every sale, over 100% It may sound good, but imagine you have to spend an average of $5 to get a conversion (depending on your ad expenses and conversions ratio). That means you’re actually getting $1 in profits.

Not so good, now? Well, let’s see how you can change that.

The basics

You can find countless products that yield huge profit margins on AliExpress, but you always need to consider how much your customers can and want to pay.

Yes, you can find products for a couple of bucks that you could price above $30. It’s a lot of money to invest in paid ads and still yield a profit, but that doesn’t mean it’s your ideal price.

You want to look for items around $10 since it makes it easier to run the math on your expenses. Ideally, you should spend about the same amount per conversion and base your profit margin around that.

The golden rule

Depending on your niche and product, you want your price to be about double (or a bit more) than the production cost. That price should cover the product, marketing, and yield you a profit, so base your budget around it.

Of course, you also want to optimize your marketing methods so that you can spend less without killing your conversions.

Pricing methods

Let’s go into the different strategies now.


You can offer different products to your customers at single prices. You’ve probably stumbled upon this method while buying yourself, especially with clothing stores.

However, there’s not a better example than gaming companies. You can always see different games under the same title being bundled – even under the same genre.

This is great because you can boost your product’s perceived value, this increasing your sales and general profits (even if you reduce your profits per item). However, you might find it harder to products individually.

Free + shipping

This has been a dropshipping staple. It’s basically offering an item for free as long as your customer pays shipping. Then, you inflate your shipping price and profit from that.

It’s a great strategies for products under $10, but try not to use it for more expensive products. It look sketchy if you offer a free scooter or a drone and charge hundreds just for shipping.

The good thing about this strategy is that “free” is a very attractive word for people. Someone browsing their social media without thinking about shopping might even change their minds if they see something offered for free. Just make sure you use it on the right products.


This is as traditional as commerce itself. You should stay away from round numbers and price your products a few cents lower.

You’ve seen this already; it’s when stores price their products at $4.99 instead of $5. Even if you have prices around the hundreds, you can price your a drone at $97 instead of $100 and so on.

However, if you sell more luxurious items – which actually benefit from high prices – you might not want to visually reduce the price.


Another traditional strategy, you can use discounts to sell more products for cheaper. It’s similar to bundling: you reduce your profits per single item but increase your sales overall.

It’s great because it gives you a nice traffic (and sales) boost. You can even use the strategy to offer special promotions to loyal clients.

Below/above competitors

You should always look at your competitors when pricing. While pricing lower might be an obvious way to attract more customers, you don’t want to cut your profit margins. However, if it’s possible to lower your costs (and thus prices), then it’s a worthwhile approach.

On the other hand, pricing your products higher can actually make you seem like a premium store if done correctly. You’ll give the impression that your products have better quality, but you need to be careful not to appear as overpriced.


Pricing is as important as other marketing strategies, and it’s all about hitting a sweet spot where you can profit noticeably without appearing “overpriced”.

Make sure to run all the calculations necessary and keep an eye on how your competitors are doing until you find that range.

If your needing more help or are new to dropshipping I highly suggest you get a proper course. Honestly, if you go out there and try to run paid ads without knowing anything you will most likely end up losing a lot money and time. That’s why I recommend eCom Elites which is basically one of the cheapest courses out there with a TON of content inside it. You will not find as much content inside with the same price as eCom Elites.

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