Healthy margin per product

If you will have at least 30% net profit then i think it will be the healthy profit margin. And others may vary.
Thanks

Depends on the price and your market. For $2 items sold in US for example I would go for 400-500%. Over $10 I would go for 100%. You have to find a balance between:

-what's worth to you processing an order. This comes with the risk of item being out of stock, finding another supplier, refunds, package lost etc.
-the item also has to sell, people will impulse buy until specific price

Check your competition and split test. There is no one size fits all but if you automate the price you have to come up with a formula.

Your product is not dumb.

It's not inert, in terms of a market and therefore margin. It should be alive and kicking and moving around. Move your price (therefore margin) up and down, create a thoughtful pricing strategy (a strategy meaning a plan to achieve different margin objectives that react to different market changes).

Pricing, of course, will largely determine your margin. So to answer your question directly:

20%

50%

100%

Why?

Because at different times of the year, against ever changing competition i will move my prices up and down (and thus margins).

At times a 20% margin is terrific for me (eg when I am running promotions in order to aggressively take market share).

At other times a 100% margin may be appropriate (and doable) as I take advantage of a market share that has been built around good reviews.

There are even times when I have a negative margin (deliberately) and extremely happy, it meets my objectives and builds market share.

Think of margins as dynamic and not dumb. They are not ends in themselves. They serve your business objectives and should move to fit with them as they change.

Hope this helps.

Good luck with your venture.

It depends on where your business is at. If you're dropshipping, 15% profit is a good level, however by no means is any lower acceptable.

You'll encounter cost of goods sold. Just look at the total cost to you and compare it to what you're marketing for. There is a good guideline.

Your competition will tell you a lot. If you get an average of what your competition is selling the same product for, including price and shipping, you'll get a good idea of what you should be selling it for.

You can adjust this slightly to get a better profit margin, however with drop shipping at 15% minimum profit margin (assuming that you're selling products for between $50 and $250), you won't want to adjust it too drastically.

There will usually be minimum prices that you can sell for. Use this to your advantage, as this will mean you're dealing with a quality supplier, and also that neither you or your competition will be engaging in price dropping.

Sincerely,

Mark Weisse

Understanding how to run a business to make a profit is an essential skill for anyone who wants to succeed.

Providing advice about profit margins and what you should charge for products you sell would only be misdirecting you.

The best advice is to understand what returns you need to make to have a business that rewards you adequately.

Many people end up in business and don't have a clue.

Advice about looking at what the competition charges is poor advice because you don't know what overheads or expenses the competition has.

You may not understand their competitive advantages nor their business model.

Much like Zany Zebra pointed out there are different situations where they would charge different prices for the same products to either generate more reviews, leads, customers or to maximise profits.

There was something I learned early on when I went into business in 1992 and that was "there is always someone whether smarter or dumber than you able to sell cheaper"

Don't fall into the trap of basing "YOUR" prices on what other people are doing.

One simple thing you can do is workout how many hours you are putting into generating an income.

If you work X number of hours and you want to have Y amount of income it becomes easy to work out on an annual basis how much you need to be paid for the time you invest.

Once you know this number you can work out how much profit you need in "all the sales"

Then you work back to what you need to generate from any specific sale.

If you don't understand what you really need to make then how can you determine your prices?

If you have a regular wage and you are just seeking to add an additional income stream then you may be happy to accept "sub-par" profits because you already cover your living expenses from you trading time for money.

When you don't have an "employer" paying you regularly you need to think differently.

You must think of making adequate profits otherwise why would you waste your time when you could just get remunerated for trading your time for money.

You need to decide if you are going to have a real business that provides an income for you to improve your life or if you just want a hobby.

I've always earned my own money since I was 22 and I'm now nearly pushing 50 but I have a home, a boat, a 4wd, take vacations, have businesses that support my lifestyle.

It is not all milk and honey.

You need to manage your efforts whether it be online as a retailer doing drop shipping, FBA, direct retail or offline...it doesn't matter what the model or the business is.

To succeed you must understand what your metrics are...not someone else's.

This is why looking at competitors is really a flawed method because in many cases they are just looking at everyone else and doing the same.

Change your point of view and look at what it takes to grow your business profitably.

Learn how to do that and then expand and succeed.

Best regards,

Ozi

When I was running my importing business that I franchised in 4 countries, I would not bother with sales that didn't give me a return of at least $150 per hour. I passed on this advice to my franchisees, and most followed it, but some tried to compete based on what competitors were doing.

Before long they realized that they should only go after sales with big margins as my company's operations manual taught them, otherwise they were just working for the business instead of the business working for them.

I agree with Oziboomer that it is not a good idea to offer advice about what profit margins you should aim for because that would only misdirect you. He's also right about understanding your own business metrics, not someone else's.

Find a market where you know what you can sell, how much you can sell it for, and what all of your costs will be. Don't just jump on someone else's bandwagon.

Profit starts with buying, because if you don't buy at a good price, you are pushing a rock uphill trying to generate a decent profit and a good living.

I have taught hundreds how to safely source and import small (and large) quantities direct from the manufacturers in China and other countries with margins of 300% to 500%. Some of them have posted details on this forum.

Walter Hay.

As for me, it is the main question what is the quality of this product! I think that a price it is only a numbers! That is why, be more attention and choose only the best for you!))

I always shoot for around 30%, but I have some items that are a little less and some more. Overall though I feel 30% is a solid margin.

It depends on what you sell. If you have some good channels and you are selling some goods that many people need but few people offer, and you are buying them for a fraction from the retail price other people offer the product for, you can have a greater margin, so you can make more money. But if you are selling things that can be find very easy on online and you are not a wholesaler you will have to be satisfied with the market's more common margin and that is 30 percent. Also, that is not so bad, if you are selling a product for 100 dollars you will earn 30 dollars from a sale.