It’s no secret that the merchandising industry is a competitive field. With the masses of merch shops out there, pricing can essentially make or break your business. You know better than anyone else the time and effort it’s taken to launch your shop. It’s understandable that you’d want to put a hefty price tag on your favorite designs. However, starting with high prices isn’t always the best practice. We’re here to show you the ropes and benefits of starting off with low prices in your merchandise shop.
Winning over your customers
No matter the business, it’s important to do your homework. Check out what your competitors are doing and how their products are priced. Be sure to pay attention to how their prices vary between simple designs and complex designs.
Once you have a solid understanding of the pricing structure of your competitors, you’ll have more of a clear vision on how your products should be priced.
Remember, you have nothing to lose
One of the greatest benefits of selling merchandise with Spreadshop is that it’s 100% free. You’ll never have to invest any money, ever. You won’t have to think about pricing margins because you’ll never be at a loss. Starting with low prices will still guarantee you a profit with affiliate commission (20% of the revenue consisting of product price plus print price), independently of your design price.
Test it out
Starting with low prices will excite your customers from the get-go. Plus, they’ll be even happier when you have a shop promotion! Once you have a strong customer base and a following, this is the time to consider adjusting your prices. This is something you’ll have to do very carefully.
Start by observing the best-selling designs in your shop. Listen to customer feedback to recognize where there’s room for a price increase. We’re not saying to stack on an extra $10, but to simply add a small amount to your design price. If you’re still making sales and there’s no negative feedback resulting from the price change, then you’re good to go! On the other hand, if you notice a drop in sales, it may not have been the best time to make a change. Luckily, it’s an easy fix, and your sales should go back to normal!
While driving traffic to your website is one of the most important things to focus on, you don’t want your customers doing a complete 180 once they look at your prices. Start low and keep promoting your shop. Your customers won’t be able to resist amazing merch at a great price. Happy creating!
What is your pricing strategy and how has it won over your customers? Share your experience with us in the comments below. We love to hear about your success!