Understanding how pricing works on Crowdmade is essential for managing your store effectively. Here’s a simple breakdown of how it works:
How Do I Set the Price for My Products?
When you create a product on Crowdmade, you have the opportunity to set the amount of earnings you want to make per item. This is your profit margin. The retail price that buyers see is the cost of the product plus your desired earnings.
Example:
- Cost of the Product: $10
- Your Desired Earnings: $5
- Retail Price for Buyers: $15
You can adjust your desired earnings at any time in the product editor, allowing you to change the retail price as needed.
Do I Need to Pay the Cost of the Product Upfront?
No, you don’t need to pay anything out of pocket. The "cost" number represents the base cost of producing the item, but with on-demand products, you don’t have to pay this upfront. Instead, the cost is covered by the buyer when they purchase the product, and you simply receive your earnings from the sale.
Key Points:
- No Upfront Costs: You don’t need to pay the cost of the product before it’s sold.
- Earnings on Each Sale: Your earnings are the difference between the retail price and the cost, and you make this profit on each sale.
What Happens When I Sell a Product?
When a buyer purchases your product, they pay the full retail price. The cost of producing the item is deducted, and you receive the remaining amount as your earnings. This process is automatic, so you can focus on creating and promoting your products.
Recap: How Pricing Works
- Set Your Earnings: Choose how much profit you want to make per item when you create your product.
- Retail Price = Cost + Earnings: The retail price is automatically calculated based on the cost of the product and your desired earnings.
- No Upfront Costs: You don’t need to pay the cost upfront; you simply earn your profit on each sale.