As you try to maximize sales in your print on demand stores, one of the most critical decisions you’ll make is how to price your items. Among consumers, price is of paramount concern; in fact, it’s one of the main factors that consumers will consider as they decide whether to buy from you or buy from one of your competitors. It’s also worth noting that price is often one of the first things an online shopper will see, even before they review the further details of the product in question. As such, misjudging the price can turn away buyers before they really give your products serious consideration.
There are a number of pricing strategies that print on demand companies might consider. Here are just a few of the primary options.
Pricing Strategies for On Demand Merch
1) Choosing a super-specific price.
Often, you’ll see products with nice, round prices, like $30 or $80. While these nice, round figures make it easy for consumers to do a little mental math, tabulating the total cost of their order in their head, some customers might greet these figures with suspicion. The concern that some consumers have is that these round numbers represent significant mark-up; in other words, they’re being charged way more than what the product is worth.
By contrast, giving a super-specific price like $29.34 may help consumers perceive the cost as more logical and reasonable. They may assume that these more precise numbers represent a more carefully rendered valuation of the product in question.
This strategy isn’t the best for all on demand merch, but has been proven to be effective among print on demand companies catering to “techies,” B2B customers, and to other consumers who are ruthlessly logic-driven.
2) Use a loss leader.
The loss leader approach has been found to be highly effective, not just among print on demand companies but among businesses in general. In fact, retail giants like Amazon use the loss leader method all the time.
What does this method look like, exactly? Basically, it’s all about using a super low-priced product to lure in customers, but then increasing profits with well-targeted upselling and cross-selling.
For example, you might entice customers to your store with the promise of a super bargain-priced tote bag, but then make up for it with custom T-shirts, hats, water bottles, or frisbees to fill that tote bag.
The general notion is to make customers think you’re losing money on a particular item, when in reality you’re just using that item to get them to your store to see the wares.
3) Place expensive items on the list.
Here’s a print on demand pricing strategy that relies on some basic human psychology. If you’re presenting a row of products, always put the most expensive one on the left. Ideally, there will be a pretty significant chasm between this product and the ones that come after it.
Simply put, starting with your most expensive offering will make all the products to the right of it seem like great bargains!
4) Bundle products.
Another tried-and-true method that print on demand companies can explore is bundling. Basically, provide ways for customers to save money when they place bigger orders.
You’ve doubtless seen this method employed by various online retailers. For example, Product A costs $50 by itself, and Product B costs $65 by itself… but if you buy them together, they cost just $100 total.
This is a great way to cross-sell while still helping your customers feel like they are saving money.
5) Offer similar products at slightly different prices.
Often, consumers shopping for on demand merch may experience analysis paralysis. Faced with, say, 10 different T-shirt options that are all the exact same price, they won’t be able to make up their mind. And often, that means they’ll just bail.
As such, you can actually help your customers make a decision by creating some price differentiation. Even variations of a few cents can be impactful.