Driving Print on demand Sales Through Marketing
One of the major benefits of print on demand (POD) is that retailers get to set their own product pricing structures. There are some key factors that should be considered when developing pricing for maximum profitability.
The wholesale print costs or what the print on demand supplier is charging to manufacture each product is the base cost that you must cover. Your ideal profit margin on top of production costs should also be decided. Markups of 30-50%+ are common for print on demand products. What you’ll pay for shipping should be accounted for and built into the price so it doesn’t diminish your margins. Calculated shipping rates can be offered.
Amazon, eBay, or Etsy commissions taken from each product sale should also be factored in. Competitor pricing for similar custom print on demand products in your niche should be researched. Larger print on demand orders may qualify for tiered quantity discounts, allowing prices to be lowered while maintaining profit margins as sales increase.
One should start by determining the print on demand supplier’s per-unit production costs. The minimum acceptable profit margin should then be added on top. The price should be padded to absorb additional expenses like shipping fees and platform commissions so those don’t cut into margins. Competitor benchmarking provides clues for optimal pricing.
By considering the wholesale print costs, desired profit margins, shipping expenses, selling fees, competitor pricing, and volume discounts, retailers can develop profitable pricing structures for their print on demand products and maximize their earnings on each sale.