 Hey, what's up guys, welcome to a new video. So in this one, as you can see, I'm gonna show you how to price your products for maximum profit on your Shopify stores. I've got a quick presentation that I'm gonna be running through with you. So make sure you stay tuned for the whole thing because by the time you finish watching this video, it doesn't matter what products you pick, you will know exactly what to price that product for. Now, before we jump into it, just a quick message. As always, in every single video, I give away a free one-to-one consultation call with me. So a chance for me and you then to have a chat on Skype just about your drop-shipping business and I can offer you advice however you need it. For your chance to win that then, it's dead easy to do. All you have to do is hit the like button just below this video, subscribe to my channel and leave a comment down below as well. In terms of the comment, it can be whatever you want. Just leave a question, comment the word e-com, it could be a video suggestion. As long as you leave a comment then, that'll be enough to guarantee your entry into the draw. Once you've done that then, just make sure you tune in to my next video which will be Wednesday or Thursday where the winner will be announced. And with that being said then guys, thanks for tuning in, I hope you enjoy it and let's get straight into it. So, slide number one then, what I wanna say first before jumping to the three points I'm gonna be going through is that there's no one rule to suit all when it comes to pricing a product. It's a combination of all the following things. Rule number one then is make sure you allow for 10 pound Facebook cost per purchase and that's as a minimum of course. The more you can allow then the better because then your profit margins will be higher. And the reason being then to give you an example, here's a screenshot from some recent campaigns in my Facebook ad account. I'll also show you the live data as well so that you can see the results are legit. And if you base these results on the average which down here is eight pounds 84, when you do the mass, if I've done it correctly then it works out at one pound 16 profit per sale approximately. Now that is a prox. Obviously that doesn't count other expenses such as up sales, Shopify fees, app fees, et cetera. So as long as you leave 10 pound room in there then you should be okay depending obviously on how your results go. You can work on 10 pound cost per purchase in my opinion, if you maximize all other avenues for example your average order values and you can do that then by as I've mentioned using up sales, email marketing, messenger box, et cetera. And there's loads of other different ways of things you can do behind the scenes just to increase your average order value. When it comes now to drop shipping, in fact not drop shipping, just any business then profit is king obviously. Whatever you make on your bottom line you obviously wanna increase that as much as possible. And just a side note, this is the reason why some people say drop shipping is dead but it's not in my opinion, it's just more competitive and therefore more expensive. What you've gotta remember is Facebook is a bidding platform and the more people advertising on it to your audience, the more expensive your cost per purchase is gonna be, the more expensive your CPM is gonna be. And just to prove this then, again I'll show you the live results in a second. This is a snapshot then from 2016 and back then when I first started, so going back almost three and a half years now is that it was easy to get purchases for three to four pounds but now there are more advertisers and therefore higher costs. And just to point it out to you if we go back to this ad manager here, again I can refresh the results for you guys and the stats are still the same. It's still on average three pounds 63. So that is kind of just like a clear night and day illustration of how the Facebook costs have increased over the years. And that's rule number one then guys, allow for a minimum of 10 pound Facebook cost per purchase if you can more then more the better in my opinion. Number two then is perceived value. What perceived value is then is essentially it's unique to each customer and it's the value of the product to the customer. So how valuable that product is to the customer slash how expensive a customer may think a product should be. To give you some examples then just to kind of make this as clear as possible. Here's a particular product as you can see it's a drone and everybody knows drones are expensive because there's a lot of technology involved. There's a lot of software, et cetera. And it would be fair to say that most people would expect to pay over a hundred pounds for a drone. So when they see a drone like this for 80 pounds as an example you can advertise it retail at 80 pounds. It seems really good value even though the cost to you as a buyer from Aliexpress which we can see there is only $28. And that's a good example then of the perceived value in terms of how expensive a customer may think a product should be. I've also got another product example for you then is this LED walking stick. It does multiple things like grab things off top shelves. It helps elderly people stand up and this is perceived value but in a completely different kind of way. So a product like this then isn't just about the material and manufacturing costs. I would say the average person would look at a product like this and say, I don't know, say 15 pounds to make in terms of material and manufacturing. However, the actual value of this product to somebody is potentially life changing. It can greatly improve somebody's standard of living as something at all they're gonna be using every single day and therefore in the eyes of the ideal customer it becomes a lot more valuable. To illustrate this in a better or clearer way then if you try to sell this product to a 25 year old you probably couldn't give them away for free because a 25 year old just wouldn't have a use for this whereas if you try to sell it to say 60 plus then there's a lot more use for a product like this. It's gonna affect their life a lot more in a lot better way and therefore to that person to people over 60 then a product like this is more valuable and therefore they're gonna pay more for it. The third product option example I wanna show you these poor necklaces here. Now a product like this can roughly, people can roughly guess what product like this would cost especially if you're listing the material on your product page which you should. And if it's an alloy people know alloys are cheap because it's not a proper metal. If you were to ask the average person then what an expensive metal is, some examples then the number one metal they would probably say would be gold, if not it would be silver. If they certainly wouldn't say alloy. So if you were to sell an alloy piece of jewelry like this then people can roughly guess or something like this would cost to make because the cost of this is all in the material. So that makes it more difficult then to sell the product like this for a premium price because people can roughly guess and ultimately nobody wants to be ripped off. So if you try and sell a product like this for 30 pounds people are gonna feel like they're getting ripped off and they're just not going to pay that because they can guess roughly what the cost would be to manufacture something like this. However then there is a flip side to this because if you find the right customer who is really passionate about a certain product so for example somebody who loves dogs and this was a pug necklace then they might pay that 20% more. They might pay that premium because they're so passionate about it. It's like when you go to say Harry Potter world and you go in the gift shop afterwards all the stuff in there is just crazy, crazy expensive but they know people will pay it because the only people who go to Harry Potter world are people who are mega passionate about it. Therefore they don't mind paying that bit extra. So that's point number two. Moving on to the third and final point then is market research. So if at this point you're still unsure what price to sell your products for then the best thing to do is just use other stores to base your prices on. To find stores use it, selling the same products as you or selling that product you want to sell. It's really easy to do a simple Facebook search and you'll be able to find in most cases pretty much every product and now they express somebody. Chances are somebody will be advertising it. So give an example then here's a couple of screenshots you can see a Facebook search of poor necklace and then it's one of these stores that was listed and they taught me straight to their site and I can see they're selling it for $10 and just to show you this in real effect so poor necklace, we can open up that. So this can be a really good way of actually finding ads to copy or replicate or use for inspiration. We can go straight to their site and we can see these guys are selling it for $10. So it's, and it's dead easy to do. So if you are really stuck and not sure what to price your products for then you can always use other stores as inspiration. Now what I recommend just some kind of general advice is that always start more expensive rather than too cheap because it's a lot easier to bring your price down than it is to put your price up. So just keep that in mind then when you're pricing your products. And with that being said then guys, thanks for watching. Don't forget to comment, like and subscribe. Releasing on average five to six videos a week. So if you do enjoy my videos, please make sure you hit that subscribe button. And of course you'll get those daily chances to win a one to one call with me as well. I'll post it a lot more on Instagram too lately. So make sure you follow me on Instagram. There are some free eBooks in the video description too. So make sure you check those out. The feedback on them has been great. There's, I think there's five different ones. So head over there, download them for 100% free. And with that being said then guys, thanks for tuning in. And I'm going to announce the winner then of the previous video and see who wins this one to one call. So this is my previous video, three products to sell now for Q4. It's got 143 likes. So you guys must have enjoyed it. I'm going to start making this a weekly thing. If you do need product ideas to sell this Q4 then obviously please do go check that video out. Anyway, we're here to announce the winner of the call. I'm going to put the URL in there. Get YouTube comments, get rid of that. 39 unique comments, that's absolutely brilliant. So thank you very much. The support on the channel has been absolutely awesome. I have no doubt we're going to hit 10,000 subs before Christmas, which would just be amazing. And anyway, the winner then is that person there. Thank you very much for your comment. Hit me up on Instagram and we can get that call arranged. And guys, if you just want to get straight down to business and book a call right away, you can do so. Make sure you check out the links in the video description below. And with that being said guys, thanks again for tuning in to one of my videos. I hope you're enjoying them and I'll see you in the next one.