what does cost per item mean on shopify

all right this video I'm revealing the,full pricing strategy on how to price,your products for Shopify drop shipping,that way you can make the most money,possible with each individual product,over the last few years I've mentored so,many people and this is probably the,biggest mistake not only beginners make,but even people have been in the space,for a while the pricing of your product,is very very very important it's,something so many people overlook and so,many people miss I can't tell you how,many times I've gone on people's stores,and they literally have a winning,product they have got a solid store of,solid brand but because their pricing is,off they essentially miss if they have a,winning product they're spending all,this money on ads and just not getting,sales and it comes down to the price of,the product the price of your product is,very very very important and most people,aren't following any strategy at all so,today in this video you need to go ahead,and watch this whole video because,there's three parts of this in each one,of those is very very very important,first we're gonna talk about the main,mistake people make with pricing their,products and we're gonna jump in the,computer I'm going to show you the full,algorithm on how I price my products the,full strategy and then third I'm going,to show you how you can find the max,price so you can make the most profits,with each individual product so we're,gonna jump in the computer in just,second and get straight into it alright,so first before I go over the full,algorithm how to actually price your,products we first need to talk about the,big big mistake a lot of people make so,most people that get into drop shipping,essentially they just will go ahead and,throw up a price or they'll use the,suggested price from an app like uber,low or they'll even do research at bare,minimum do research off of something,like Amazon or Etsy or see where the the,product is selling in other marketplaces,and go off.that now that's definitely,better than most you wouldn't believe,how many times I go in people's stores,and they've just thrown up random prices,but that's still not good enough if you,have the price off even just too,expensive by dollar two dollars for what,the market deems valuable and it doesn't,just have to be the full market it could,be even what a Facebook audience if,you're running Facebook ads or Instagram,audience or Google Ads audience if you,run it just a dollar two dollars too,expensive then you literally could miss,that you have a winning product you'll,be running ads to it and you'll be,getting a lot less add to carts to where,essentially you could be negative you,could be losing money on your ads rather,than making money and if you go ahead,and you drop the price just a little bit,it could be enough to essentially have,it explode I've seen it happen with so,many people's stories that I go on their,store see that the prices are way off,help them fix it and literally almost,overnight they have a huge boom in sales,and then the profitable from then on so,you need to go ahead and make sure you,follow a very very proper pricing,strategy pricing algorithm and it'll,help you now when we get into this I'm,gonna show you exactly how I use this,algorithm how I've been doing it for,almost three years now I've been using,the same exact algorithm I'm going to,show you today how to do it in the very,beginning these prices might actually,seem pretty low you might actually be,you know only just above breakeven to,where your margins would be pretty small,you got to keep in mind that this is,what you do to test to make sure you've,got those decent and golden winning,products and then once you find out that,the products will actually sell that's,then when you go ahead and you find the,max price now the max price tends to be,a good bit higher sometimes it's only a,dollar higher than what we actually put,out in the algorithm the pricing,strategy but many times it can be a lot,more but if you're just going ahead and,you're guessing and you're putting out,some random price you might even miss in,the very beginning that you even have a,decent winning product from the start so,if you use this strategy you can go,ahead make sure you got it have a very,very clean look and then you can go,ahead and find the max price from there,so let's go ahead and jump to the,computer let's go through this full,algorithm alright so there's a couple,different factors that go into the,pricing strategy the main one obviously,is the full algorithm that you'll follow,essentially what the price is on L,Express this is what you should go ahead,and start with your price on on your,store in a second I'm gonna go ahead and,show you how to find the max price but,before we get into that I want to go,ahead and make a big point this is a,mistake I see on people's stores,literally on a weekly basis I've seen,multiple people doing this and this will,hurt you this will hurt you at least in,the number sells yeah you can still be,profitable if you make this mistake and,there are people that are profitable,doing that and there's people that do,this in droves,dropshipping but if you clean this up,and you actually organize this you will,make more cells one just because of the,psychology of it but then two because of,the branding and that's essentially the,ending of your price so many people out,there essentially will have just random,prices on their store it could be you,know nine sixty seven you know 1433 just,all these random endings and so right,off the bat bat with your branding it's,not gonna look as clean it's not gonna,look as organized and if you've gone,ahead and you've done the right things,and you've branded your store right and,really really made a,professional-looking store really really,clean you've got the clean logo the,clean name all of that but then you have,random endings to your prices it's,instantly gonna throw up,so this is where me personally I suggest,you either ending all your prices in 99,or 95 now you might not want to do that,you might want to essentially have you,know whole numbers and then you use,ninety nine ninety five for you know,maybe your your more high selling,products to give that more effect of you,know it's on sale and that's where the,psychology of this comes in but having,clean endings to your prices does make a,big difference right off the bat with,the organization but this is where me,personally I always end almost all my,products in ninety nine or ninety five,and that's where I would suggest to you,to do that as well so with the pricing,strategy I'm gonna lay this out to where,what the prices on al Express for that,product it's what you should start the,product on your store now this is not,some you know hard and stone rule that,you have to fall every single time for,every single product there's a couple,times when I won't follow this but I'd,say eighteen and ninety percent of the,time this is what I follow to start my,prices on my store now though time that,you'd want to deviate from this is you,know if it will hurt you know the,overall perception for the products a,good example of this is let's say you've,got a watch store you know you might be,wanting to use this pricing strategy if,you're going for more of you know a,budget strategy you might want to have a,store that you're really trying to be,the go-to store for budget watches but,many times you won't want to do that,many times you want to have,more exclusive prices you've got more,higher-end type products you wouldn't,want to do this so even if you know,watch might be $4 on Aliexpress you,might want to go ahead and really really,bump up the price to essentially have it,deemed as more valuable from the,customers point of view now that's only,in a couple circumstances and I'd,caution you away from having that,mindset alot that's what most people,have the mind mindset of most people are,like you know if they price it too cheap,customers are gonna deem the product is,cheap that's not always the case and,you've got to keep in mind the power of,drop shipping is that we can sell around,the whole world and around the whole,world especially when you get outside,the big five customers aren't wanting to,spend a lot of money they want those,budget products they might not want the,the super high-end stuff so keep that in,mind so right getting into this so with,the product on al Express if the product,is priced from one cent to two dollars,this is where are you should go ahead,and pricing on your store between 795,799 so depending on what ending you're,wanting to do that's where I would go,ahead and start it sometimes with this,I'll bump this up a little bit might be,eight ninety five nine ninety five but,typically if it's between one cent two,dollars I started at seven ninety five,now keep in mind that might sound low,right off the bat might sound like,you're gonna have to do a crap-ton of,cells to you know really make money,that's where I'm gonna show you how to,find the max price if you don't do this,in the beginning and you price it too,high you could completely miss winning,products and I've seen it time and time,and time again beginners all the time,are missing that they've got winning,products on their store because they're,getting too eager in pricing it too high,you can find the max price and we'll do,that in just second it doesn't take long,at all but you need to go ahead and,start typically with the right pricing,strategy so between 1 cent 2 dollars 795,or $7.99 depending on the ending you,like is between two dollars from one,cent to $4.99 that's where 995 999 keep,in mind you're gonna be able to raise,this price the next one is between five,dollars and thirty dollars this is where,it starts ramping up this is where,you'll essentially double the price so,you know if the price on Ally,express is $10 you could go ahead and,have it at 1995 or 2095 but essentially,you'll use a factor of x - and then the,last one is you know if it's greater,than $30 you could go ahead and use a,factor of 1.5 to 1.75 essentially just,multiply that price on out expressed by,1.5 1.75 now this pricing strategy right,here this is what I've been using on 80,to 90% of the time for almost the last,three years now this is something that,me and a couple of mentors of mine when,I was starting way back in the day we,came up with this algorithm and this,algorithm still works and this is still,what I use this is a very very powerful,algorithm and it's almost foolproof like,I said it doesn't work for every single,product every single store if you've got,a store that's branded as you know very,very high-end store for high-end,products all that you're gonna need to,go ahead and do do a different strategy,and I would caution you on just guessing,what you deem it valued as because it,typically doesn't work that way,this works most of the time then to find,the max price so this this is going to,get you to where you then you can test,the products you can go ahead and if you,have this and you've got a winning,product on your store you're gonna know,it you're gonna get the sales coming in,with these prices but this is where you,could be just above break-even when,you're running ads and everything I mean,you've got a winning product you know,you might just be just above breakeven,with these prices because your margins,are gonna be smaller but this is where,you want to go ahead and find the max,price so to find the max price,essentially once you start making sales,even if it's just a decent product but,if you've got a winning product you're,gonna have sales coming in so after 2 to,3 days you're gonna know essentially the,potential of the product now if you,haven't seen my Facebook Ads strategy,videos you need to check that out I,talked about when you know you've got a,decent or winning product but really,after 2 to 3 days you'll know and you're,gonna have at least some level of,consistency in those sales so what you,want to do is the next day go ahead and,raise the price of the product by $1,essentially during this time you might,be scaling up the ads a bit but this is,where I would caution you on how much,you're actually changing with your,Facebook Ads if you are using Facebook,Ads,really right now what you're wanting to,do is go ahead and find the max price,and then you can go ahead,really start you know putting all your,efforts into scaling so if you've got,the price say at you know 1795 now go,ahead and raise it to 1895 most likely,you're not gonna have a drop-off in,sales next day riot raise it to 1995,most likely you're not gonna have a,drop-off in sales essentially you're,gonna keep doing that keep raising up,the price and only step it up in small,increments cuz you're looking for a,drop-off what's gonna happen is you're,gonna have the sales go and you're gonna,find two we're essentially Peaks and,then all of a sudden you're gonna raise,it by one more dollar and you're gonna,have a pretty drastic decrease in sales,now as you're doing this you might see a,little bit of a decrease in the number,of sales as long as your profits or,going up your profit margins are,increasing because you're raising the,price at the same time as long as your,profit margins are increasing you're,good to go it's once you go ahead and,you raise it by that next amount whether,it's $1 $2 however much you're raising,it by because if it's a higher priced,product let's say you know if you have a,product that's $40 you might not want to,increment it by $1 it might be you know,a few dollars at a time but once you go,ahead and do that you're gonna see a,drastic drop off pull it back to the,last amount that's your max price this,is how you can go ahead and have the,healthiest margins for each individual,product I've seen this to where you know,even people that are making good sells,they could go ahead and find you know,even better max price if they do this,the right way this is where you're gonna,have to know your sales you're gonna,have to really really make sure you're,doing everything right with Facebook Ads,and all that and keeping things,consistent that way you can really track,when it drops off but this is the most,efficient way to do it so with the,pricing strategy make sure you've got,the clean endings make sure you're,following the strategy at the right time,which is most of the time but there are,times when you don't want to do it,follow this strategy to make sure you,can go ahead and test the products in,the most efficient way,while not missing that you have a decent,winning product and then from there go,ahead and find your max price once you,actually start getting sales I mean if,you do this and you've got everything,else in place like you've got the clean,store the branding all of that you've,done the product research you will be,making sales like I said if I had to pin,down you know,the biggest mistake beginners make this,would at bare minimum being the top,three biggest mistakes I see if not the,top mistake pricing is something that so,many people in ecommerce have wrong and,if you do this this can completely,change the game for you so definitely go,ahead check this out start applying this,to your store to your brand keep in mind,that I'm still offering free one-on-one,coaching calls for all new members of,the dropship fortune program so if you,want the full a-to-z guide showing you,not only how to start a successful,e-commerce brand but then scale it up,you know advance Facebook ad strategies,all of that plus get private ongoing,mentorship through a private course,email that's unlimited you'll also get a,free one-on-one coaching call with,myself I'll get on the phone or on skype,with you in I can give you full,customized game plan for your brand help,you scale up ads whatever you need keep,that in mind,check that in the description box below,I hope you guys enjoyed this video I,hope you got value out of it if you did,please go ahead and smash that like,button hit subscribe if you haven't,ready to leave any comments or questions,down below I love going ahead and,connecting with all of you,be happy be positive be powerful and,have a great rest your day

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