how to setup mark up ranges in shopify

20 50 100,or more how much should you mark up your,wholesale prices when,drop shipping that's the question i'm,going to answer in this video,so you don't just do a bunch of sales,and have a lot of top line revenue,but so that you're actually left with a,real profit at the end of the day,if you have been around for a while,you're probably aware,that in my e-commerce businesses we,always aim,to maintain at least a 30 net profit,margin,meaning if we sell a product for one,thousand dollars that's what our,customer pays us,we want to be able to keep at least 300,after all expenses so does this mean if,a supplier,sends us a price list and says here's,your wholesale prices,we simply mark prices up by 30 percent,no absolutely not we need to factor in,all of our other expenses so we have,cost of goods sold that's the product,cost the wholesale cost,we have shipping because we offer free,shipping to our customers,meaning we pay for that we need to,factor in our merchant fees,to pay the credit card processors we,need to factor in,our ad costs so with all that being,known,how much do we actually mark up our,wholesale costs i'm going to tell you,that in just a minute,but first it's important to note that we,almost always,sell at map map stands for minimum,advertised price and this should have,our markups,already built into it and these markups,should always be,at least one hundred percent so if,your wholesale cost to your supplier for,a product,was five hundred dollars then map,minimum advertised price,the price you would sell it to your,customers for should be at least,one thousand dollars but then the,question is well what if it's,not let's just say a supplier sent you,their price list,and the wholesale cost was seven hundred,dollars,and map minimum advertised price was one,thousand dollars,there's not much room there for you to,make a profit after you pay,all your expenses so then the question,becomes can i just,list these products for more than map,can i sell them to my customers,for more money than minimum advertised,price the short answer is you can,but it's most likely going to make,things a lot more difficult,let's just take a product for example,that everybody knows,and use in iphone now specifically let's,use the,newer iphone 12 pro max,this phone with the base level of,storage 128 gigabytes,that phone sells for 1099,on apple.com on target.com on amazon.com,and on bestbuy.com 1099,that is the map price that's what,everybody's selling at,minimum advertised price now i have no,idea what the markup is,but let's just say tomorrow apple got,really greedy,and they said guess what retailers your,wholesale cost,is now one thousand dollars that would,leave them with a 99,profit on a thousand ninety nine dollar,sale,and let's just say amazon said you know,what that is unacceptable,we are going to raise the price on our,website to two thousand dollars because,we want a 100,markup now they could do that but are,people going to spend,two thousand dollars for a phone that's,1099,everywhere else no of course not right,so,yes you can sell for more than map but,it's almost,never worth it unless there is a caveat,here,unless you sell for a supplier with,little to no,brand recognition meaning that for this,brand you sell for,almost no one is searching for their,products anyway,in that scenario what i have done and,what i'd recommend at least considering,is creating your own brand name and your,own product names,for that suppliers products and private,labeling them,basically selling their products and,drop shipping them but turning them into,your own product,names so when people find them on your,store and eventually as a brand is built,up around this,they are your products that way if map,is a thousand dollars and your wholesale,cost is seven hundred dollars,it doesn't matter anymore because the,products that you're selling under your,private label brand,you can sell for fifteen hundred you,could sell for two thousand dollars,because nobody's gonna comparison shop,they are now your products,because you are private labeling them i,will say just so you're aware,doing things this way is more work but,there is money to be made there so,something to consider so that's gonna do,it for this episode guys as always i,hope you got value if you did give the,video a like,if you are not subscribed yet click that,button and click the bell,so you get notified every monday and,thursday when a new video goes live,and if you want a free copy of this my,report with 237,profitable products updated for 2021,i'll put a link on the screen you can,click it goes to dropshipwebinar.com,which looks like that when you get there,register for a free training,get the report for free get a free three,hour training,and a special offer on the dropship,blueprint which is my e-commerce company,that won best ecommerce course by,shopify so,check that out as well so thank you,everybody appreciate you and i'll talk,to you in the next episode on thursday,for the ecommerce lifestyle podcast see,everybody

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