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Think Savvy when pricing your products and services

Oct 28, 2024

Whether you're selling artisan coffee, trendy sneakers, or digital services, getting your pricing right is the secret sauce to making your online business thrive. We've seen entrepreneurs from every corner of the market turn their dreams into reality, and we know that pricing can make or break your success.

Why pricing matters more than you think

Pricing isn't just about slapping a number on your product. It's about telling a story, understanding your worth, and creating a sustainable business that keeps money flowing into your pocket. Whether you're a drop shipper, a wholesale supplier, or a service provider, your price tag speaks volumes about your brand.

Savvy three-step pricing strategy

1. Know your costs inside out

Before you decide on a price, you need to understand every single cent that goes into creating your product or service.

This means:

  • Materials

  • Your time

  • Packaging

  • Shipping

  • Any additional expenses

Don't undervalue your time!

Your expertise is worth money, so factor in what your hour is really worth.

2. Add your profit margin

This is where you turn your costs into actual earnings. A good rule of thumb is to aim for a 20-30% profit margin.

Here's a simple way to calculate:

Total your costs, then divide by 0.8 (for a 20% margin). So if your total costs are R14.28, your base price would be around R17.85.

3. Check the market

Your price needs to make sense in your market. If you're selling handmade bracelets and everyone else is charging R50, pricing at R200 might scare away customers. Similarly, pricing too low can make people question your quality.

Materials – Know your costs
Materials – Know your costs

Real-world pricing strategies

  • Coffee Sellers: Consider your beans, brewing time, packaging, and local café prices.

  • Sneaker sellers: Factor in wholesale costs, platform fees, and shipping.

  • Service providers: Think about your expertise, time investment, and market rates.

The Savvy Secret: Flexibility is Key

The beauty of an online business is that you can adjust. Start with a price, watch how customers respond, and be ready to tweak. Your first price isn't set in stone – it's a starting point.

Sales help determine a price point your customers are more likely to spend money on
Sales help determine a price point your customers are more likely to spend money on

Extra tips

  • Use our built-in price values in product cards

  • Test different price points

  • Ask your early customers for feedback on social media

  • Don't be afraid to adjust

Your pricing, your power

Remember, pricing is an art and a science. With a Savvy Site, you're not just building a website – you're building a business that can adapt, grow, and succeed from anywhere in the world.

Ready to price like a pro? Your pricing journey starts now.

Sign up/sign in to your Savvy Site.