Price Guidance

How much markup should I take?

  • Compared to a traditional boutique, your overhead costs with a Bloom Drop Ship account are low. This lends the opportunity to price at a more competitive rate which in turn increases your sales.

  • Lower prices means out-competing other boutiques in your market and being at under market prices.
  • With that said, a fundamental rule of business is that you charge what you can get away with. Thus, if the market is at $45 for a hot trending top then its best to charge the same even though you can make it lower.
  • It's a balance that you will have to find between being financially competitive making and making the most money from your efforts.

With that said, we think the best formula for setting a price is doubling the cost + shipping price combined with offering free shipping to the customer.

Played out it looks like this:

You purchase an item at $15 dollars, you double that to get $30 dollars and add $3.99 for shipping to get a total retail price of $33.99 or $33.95.

Since your cost for shipping is a flat $3.99 ($9.99 if the order is 3-10 items), by adding $3.99 to the price of the item you increase the chance of a sale without actually loosing any profit.

After the customer pays for the item, and you purchase it from our website and have it shipped, in this example you will make a $15.00 dollar net profit.


Also advisable are the two following prices (with a purchase price of $15.00):

  1. $29.95 dollars and charge the customer $3.99 for shipping.
  2. $29.95 dollars and don't charge for the $3.99 shipping. You will make less profit but perhaps sell 2x-3x more then at the price of $33.95 (prices like $19.95 or $29.95 can potentially double sales volume versus items priced at $30.95).
  3. $39.95 dollars on an item that you feel is ultra-trending, which will sell no matter the price.


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