Selling print-on-demand products can be exciting—but to make your store profitable, you need a smart pricing strategy. Your goal isn’t just to cover costs—it’s also to appeal to customers and maximize order value.
Understand the Costs Behind Each Product
When setting prices, it’s important to remember there are several costs that affect your profit (full price you’ll be charged by Printful after receiving order to your store):
- Printful fulfillment cost: this is the base cost to produce and ship the product. You pay this after a customer places an order.
- Additional fees: some products may have extra costs, such as:
- VAT or sales tax depending on your location and your customers’ locations.
- File digitalization or setup fees for designs that need formatting or vectorization.
- Customer-facing shipping: this is the shipping price you set for your customers in Hostinger Website Builder. It can be free, flat-rate, or variable based on location. Check out Shipping Strategies You Can Use.
⚠️ Important: All these costs add up. To keep your margins healthy, factor in every cost before deciding on the final product price.
Pricing Strategies for POD Products
- Cost-Plus Pricing:
- Add up all costs: product base price, extra fees, and your desired profit margin.
- Set the retail price to cover all costs while leaving room for profit.
- Market-Based Pricing:
- Check what competitors charge for similar products.
- Make sure your prices are competitive while covering your costs.
- Value-Based Pricing:
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- Price according to the perceived value of your product.
- If your design is unique or highly appealing, customers may pay more than just the cost of production.
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Practical Tips
- Always factor in VAT, shipping, and extra fees to avoid surprises.
- Consider offering free shipping by including fulfillment costs in the product price—it can boost sales.
- Re-evaluate your prices periodically as Printful rates or tax regulations change.
Next Steps
- Check Printful’s product prices and shipping costs: Printful Pricing
- Calculate additional costs like VAT or file setup fees.
- Decide on a pricing strategy that fits your business goals and customer expectations.
By understanding all costs and setting prices strategically, you can ensure your POD store is profitable while remaining attractive to your customers.