•Pricing Strategies For Your Private Label Products On Amazon•

Pricing your private label products will be some of the most important decisions you’ll make in your business. In this episode of the AM/PM Podcast I go over a few different pricing strategies I’ve used in the past and I go over different pricing experiments conducted by well renowned universities.

We’ve seen prices ending in 9 for several years now, but a recent study conducted by MIT students determined there is a significant benefit to pricing items with numbers ending on 9. These prices even outperformed lower prices ending in 4.

A clothing catalogue agreed to publish multiple variations and distributed them amongst their subscribers. The control had a dress priced with a number ending in 9, one variation had a price that was 5 dollars cheaper, and the other variation had a price 5 dollars more expensive than the control. The control, the item priced ending in 9, outperformed both others.

Another experiment wanted to prove the effectiveness of a discount. In this case they had a product priced at $40 and the same product priced at $39. By split testing these two price points they showed that, as expected, the product priced at $39 produced more sales. Later they introduced a variable. The product that was priced at $40 was presented as a deal by showing a $48 regular price and a $40 sales price. By having that comparison the $40 product outsold the $39 product. This doesn’t contradict the great power of a price ending on 9, after finding the power of the deal the experimenters tried another variation of a $48 regular price and a $39 sales price. This last variation outperformed all others.

~Download the transcript for this episode: https://www.ampmpodcast.com//pricing-strategies-private-label-products-amazon-ep16/

*Outline of this episode of the AM/PM Podcast:

00:46 Episode Introduction

01:22 Why Episode 15 Took So Long…

01:58 How to Join Our Facebook Group

02:12 Why I Lost Over $144K According To Amazon

02:33 Why I Ran Out of Inventory In December

03:20 What I’m Doing to Prevent Running Out In the Future

04:22 What Happened to My BSRs After I Ran Out Of Inventory

06:38 How I Miscalculated On My Sales Forecasts (Again…)

11:32 To Run Out Of Inventory Or To Raise Prices… That is The Question!

15:19 What Net Profit Should You Look For?

16:30 Update On My “Secret Weird Product”

19:22 An Special Announcement Of Something Really Cool (Coming Soon)

҉ Links mentioned in this episode:

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Study conducted by MIT students: http://web.mit.edu/simester/Public/Papers/Effectsof$9.pdf