Dropship Pricing 101- MSRP, The Product Price Override Tool, & Using Specials To Promote Your Product Discounts.
All major store platforms like Zen Cart, 3dCart, Big Commerce, Open Cart, PrestaShop, Volusion, and others are great website platforms for selling your wholesale dropship products. Besides being fully integrated with your Inventory Source Automation Solution, they also have tons of useful tools and features in the website administration menu.
One of the common features in the store platform is something called “Specials”. It is not for pricing a large number of your products, but if you are having a sale for 20-40 items, this can be a great store tool. For example, on Zen Cart websites, this control is in the admin menu under Catalog>>Specials. The Specials module allows you to take your normal store selling price for a product and add an additional discount. The product, depending on your template design, then displays with the old price, the new discounted price, and the savings between the two prices and Specials can be featured on your main page or their own page easily.
If you are already using this function on your store, that is great, but did you change the original price of the item before adding the discount?
The bigger the discount you show, the better the sale will look to your customers, so utilize your Inventory Source Product price Override Tool.
Here is how:
*Let’s say you have an item with the default MSRP and cost below-
MSRP: $90
Cost: $50
*You might use your default price setting controls to price the item at $70.49. So this would be the retail price on your store.
*Next you go to the Specials function on your store and put it on a 20% sale so it now shows the 20% savings and sells for $56.39
Using Specials on your store like this looks great. The customers see the old price and the savings and the new lower price for this item, but is there a better way to promote this sale?
Before pricing your Specials, first go to your Inventory Source Product Price Override Tool. Take the items you want to put on special and first mark those SKU’s up to a higher selling price like their original MSRP. You can set the price to MSRP or use the Static Price Override to set it to the specific price you want. When your store updates you will then have the original selling price at $90, instead of $70.49.
If you now go to Specials and sell it for the exact same sale price of $56.39, since it is calculating off the $90, your savings on the website now shows a 37.34% discount!
Your ending markup and profit margin on the cost is the same, but when the customer is looking on your site for a great deal, because you updated the product back to the original MSRP before putting it on sale on your site, your customers have much more savings to get excited about by showing a discounted price savings which has almost doubled.
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