{"id":13136,"date":"2019-09-10T10:42:35","date_gmt":"2019-09-10T09:42:35","guid":{"rendered":"http:\/\/www.repricerexpress.com\/?p=13136"},"modified":"2024-12-20T13:22:52","modified_gmt":"2024-12-20T13:22:52","slug":"reprice-on-amazon","status":"publish","type":"post","link":"https:\/\/www.repricerexpress.com\/reprice-on-amazon\/","title":{"rendered":"5 Ways to Reprice on Amazon For More Profits"},"content":{"rendered":"

Guest post by Josh Morris<\/em><\/p>\n

Hey there, it’s Josh from Azon-University<\/a> here. Chris Dunne from RepricerExpress<\/a> asked me to share a few pricing strategies for this blog and I’m so excited to share. So, here are the top five strategies that we apply to increase our profits and conversions. You can do these strategies manually but they’re much easier to implement with repricing software like RepricerExpress. Let’s start with a basic price strategy of price ceilings and discounts.<\/strong><\/p>\n

1. Price Ceilings & Discounts<\/h2>\n

Why does $49.99 sound so much cheaper than $51.68? Even though it’s only .67c more, it feels like you\u2019re spending an arm and a leg more than the lovely sounding cheaper price of $49.99.<\/p>\n

This is because of the psychological trick of ‘price ceilings’. You should always price your products at these ceilings to maximise profits while keeping your conversion rates soaring.<\/p>\n

Examples of price ceilings: 14.99, 19.95, 24.99, 29.95 – You get the idea\u2026<\/p>\n

Examples of NOT price ceilings: 15.45, 22.50, 33, etc. Don\u2019t do this.. it doesn\u2019t look good, and doesn\u2019t work.<\/p>\n

Now let’s talk about discounts.<\/p>\n

Even if your price is 19.99, you can still have a retail price of 24.99, or 29.99. This way there is always a perceived sale on your products, and the visitor thinks like they are getting a bargain.<\/p>\n

You\u2019ll see this combination of discounts and price ceilings in every high street retailer and most internet sites because it WORKS. It\u2019s worked for hundreds of years and it’s tied into human psychology.<\/p>\n

We are always hunting for a bargain, and a product priced at 29.99 discounted from 39.99 will ALWAYS sound better than a product priced at 30 with no discount, even though there is only one cent difference in price.<\/p>\n

Let\u2019s move on\u2026<\/p>\n

2. Minimum & Maximum Prices for Safety & Profit<\/h2>\n

You should set minimum prices for your products so they can\u2019t go below a fixed threshold no matter what.<\/p>\n

To figure this out, calculate your break-even price or at the very least, minimum profit objectives.<\/p>\n

If you’ve tracked what your break-even price is, then you can never go below that price or you\u2019re losing money.<\/p>\n

You should have a minimum profit objective (i.e. minimum 20% profit margin) so you’re certain you\u2019re making a profit even at this low price.<\/p>\n

You should set maximum prices as well, which reflect how much profit you truly want to make and how much value your product and brand brings. The more value, the greater your price can be.<\/p>\n

We like to shoot for 40-50% profit margins, with 20-30% being a minimum\/break even, and 60-70% being a maximum as we increase the product value.<\/p>\n

So how can you increase the product value and charge more? Well, that\u2019s step 3\u2026<\/p>\n

Related:\u00a0<\/strong>Setting Your Min and Max Prices in RepricerExpress<\/a><\/p>\n

3. Increase Value, Increase Price<\/h2>\n

People pay more for more value, it\u2019s as simple as that. We use money as an exchange of value. If you want to charge more, become more valuable.<\/p>\n

Here are two ways we have become more valuable, and how you can too. I\u2019ve split up value giving into two categories, Perceived Value and Actual Value<\/strong>.<\/p>\n

Perceived Value<\/h3>\n