Setting prices that work.
WHAT TO INCLUDE
Cost of goods Delivery, if you offer it free or at a loss Payment gateway fees Packaging
A share of fixed costs: hosting, software, your time
Margin
WHAT PEOPLE FORGET
Gateway fees, which on a thin margin are significant Failed deliveries Exchange rate movement on imported goods Their own time
DISPLAYING PRICES
Inclusive of any applicable tax is simpler for consumers, who expect to see what they will pay.
State delivery cost before checkout, not at the final step.
PRICE CHANGES
Exchange rate movement affects imported goods continuously. Review prices regularly rather than discovering you have been selling below cost.
DISCOUNTING
Check the margin at the discounted price before running an offer. A twenty per cent discount on a thin margin can make a sale unprofitable.
COMPETING ON PRICE
There will always be someone cheaper, frequently someone who has not calculated properly and will not last.
Compete on reliability, service and delivery instead.
