Drop shippers will provide you 2 types of prices with each of their products
HOW CAN I CONFIGURE MY SELLING PRICES COMPETITIVELY?
A) RETAIL PRICE
This is the price that that supplier is suggesting that you sell the product for. This is only a recommendation and you are certainly not forced to sell the products at those prices.
B) WHOLESALE PRICE
This is the price that that the supplier will charge you after you made a sale. Of course this means that you must sell the products above your wholesale cost to make a profit.
HOW DO I CONFIGURE MY SELLING PRICES
Since the list prices are usually a bit too high, most sellers decide to sell below those prices.
When you work with wholesale2b.com, you can change your selling prices very easily by applying a general markup on your wholesale costs.
For example if you configure a flat percentage markup of 30% then your selling prices will automatically be set to your wholesale prices + 30% which will be applied to all items, however with wholesale2b you can also configure different markups per supplier to give you better control over how you want prices to be handled.
Members of wholesale2b will have access to several markup methods.
- Flat percentage markup
- Flat dollar amount markup
- Tier percentage markup
- Tier dollar amount markup
I would recommend that you use a Tier Percentage Markup because your wholesale prices for each item can vary from low prices to high prices, and as you know a 30% markup is much different when applied to a $10 item compared to when its applied to a $400 item.
With the tiered markup option you can set different markups on price ranges of your choice. This means that you can apply larger markups on low priced items and smaller markups on high priced items to help you keep an evenly spread profit across all your products.
Here is an example of a Tier Percentage Markup setup:
$0 - $10 = 120% markup
$10.01 - $30 = 90% markup
$30.01 - $50 = 51% markup
$50.01 - $60 = 45.5% markup
$60.01 - $70 = 44% markup
$70.01 - $80 = 43% markup
$80.01 - $90 = 41% markup
$90.01 - $100 = 40% markup
$100.01 - $99999 = 35% markup
Of course the numbers above are examples only and you are free to set the price ranges of your choice to meet your requirements.
IMPORTANT NOTE: if you are not sure how to configure your markups, then you can request a price review service from wholesale2b. This price review will involve having the Wholesale2b team manually set the prices of each item on your list to yield a profits based on a profit range of your choice. The price of a price review is only $5.