If you are wondering how you can make a profit by using Printrove's on-demand printing and drop shipping services, you've come to the right place! When running a business, profitability is one of the critical factors to consider. Continue reading to understand how you may add your profit margins to the products by setting a retail price at Printrove.
What is the payment flow for an order?
There are 2 types of orders; Prepaid and Cash on Delivery (COD). The payment flow for each would be as follows.
- The customer pays the Retail Price of the order placed on your store/ website.
- You place the order with Printrove and pay the order value.
- You place the COD order received with Printrove and pay the order value.
- Printrove transfers the Retail Price collected at the time of delivery to you.
What is the order value you pay to Printrove?
The order value is the amount charged by Printrove for processing the order. It consists of four basic pricing components. They are as follows.
- Base Price
- Printing Charges
- Shipping charges
Printrove offers startup-friendly, B2B pricing for its products, allowing you to offer competitive pricing to your customers without compromising on quality.
What is the retail price the customer pays you?
The retail price is the amount you set
for your products on your website/ store. In the case of Prepaid orders, you can collect the retail price from the customers by setting up a payment gateway
on your store/ website. A payment gateway is a technology used to securely accept payments from your customers and transfer it to your Bank Account. Following are a few options for payment gateways.
In the case of COD orders, the retail price will be collected from the customer at the time of delivery and transferred to you through the COD Remittance process. You can refer to the following article to know more. How does Cash on Delivery Remittance Work?
How can you make a profit by setting the retail price?
You need to follow the most basic rule of pricing; Product Cost < Retail Price. The difference between the product cost and the retail price will be your profit.
How to set a retail price for a product?
You can calculate the product cost by following the steps below.
- Design the product in the Printrove Product Library. You can refer to the product price, excluding shipping, in the live preview design window.
- Add the shipping charges, general costs and other miscellaneous costs incurred
- Define the profit margin and add the percentage to the cost
And done! You have your Retail Price. You can now upload the products with the Retail Price on your websites. You can set it on Printrove in following ways.
- When manually placing an order on Printrove, you can add the Retail Price as part of the shipping details. You can refer to the image below.
- While syncing or pushing the product to your store, you can set the Retail Price for each variant.
The retail price will be printed on the shipping label to determine the value of the order.
Let's finish this off with an example.
In case of prepaid order:
- A customer places an order and pays the Retail Price of Rs. 700, through the payment gateway on your store, to you.
- You place the order on Printrove and pay only the order value of, lets say, Rs. 300, including shipping.
- The difference of Rs. 400 makes up for other costs and your profit on the order.
In case of a COD order:
- A customer places a COD order on your store with the Retail Price as Rs. 700.
- You place the order on Printrove and pay only the order value of, lets say, Rs. 350, including shipping.
- The retail price is collected from the customer at the time of delivery and is transferred to your bank account through the COD Remittance process.
- The difference of Rs. 350 makes up for other costs and your profit on the order.