how to adjust margins in shopify

what's up guys welcome back to a brand,new video my name is lui cook and I want,to thank you very much for stopping by,for another video on my channel today,I'm gonna be going over profit margins,something I talked you a lot in the DMS,about guys a lot of you are coming to me,free plus shipping kind of methods,selling cheap product not getting good,responses and you want to ask me what,kind of profit you should be looking for,per product so I thought would be the,best thing to do would be to cover that,in a video so I'm gonna put this video,together just a quick short video,talking about the psychology behind the,profit margins and what you're going to,see if you up your profit margins as,opposed to having them at real small,numbers so let's jump straight into the,video guys we're going to go through it,and as always guys if you did get any,value from this video make sure to hit,that like button leave me a comment and,if you aren't already make sure you,subscribe to the channel is with a 2,000,subscriber giveaway will be coming up,soon,I ain't messing with the flow you ain't,messing with my vision messing with the,money you ain't messing with decisions,yeah you messin with the team,with the squad profit margins guys,everyone comes to me asking the same,question what kind of profit are you,making how much profit should I be,making what happens if I try to make $10,profit as opposed to 5 so I thought I'd,cover it now guys in a video and for,today's video I'm gonna be using the,watch as an example so the watch niche a,lot of you guys are in it so I think,it's quite a good one to go off because,obviously I want to be helping as many,of you at the same time as I can be in,the watch niche there's a lot of,products and the product cost is so,minimal guys you're gonna be selling,watches that cost one two three maybe up,to five dollars per watch now like I say,in my videos branding is extremely,important so how does profit margin,affect your brand now for every brand I,create and for everyone that creates,brands beneath me in my mentorship,programs and stuff like that I always,say premium go with a premium feel now,what does premium mean guys so a premium,brand is where you actually push the,premium feel across to your customers so,you make them believe that your products,are premium therefore the price tag is,premium and it's worth it so you can,sell a watch for $40 as opposed to 10,okay so how to actually push that,premium image across to your followers,to your consumers and to your market so,essentially it's down to branding so,it's down to a logo sounds your name and,it stands with content that you actually,use on your Instagram page so like I've,done on my previous video guys I did a,three part Instagram brand building,series if you go over there and look at,that blank time pieces watch company,that I actually formed just for that,video you'll see that there's quite an,edgy modern kind of urban look and feel,on the Instagram page now if you can,replicate that,that's a premium feel okay now you don't,need to be putting up pictures of,Ferraris you don't need to be putting up,pictures of big mansions that's more of,an in spoke page but if you actually put,across this urban dark kind of feel,that's a premium feel therefore I can,sell these watches at thirty to forty,dollars as opposed to ten so imagine,making $30 profit as opposed to five,okay I want to go over some of the main,reasons I up my profits as opposed to,having them lower and potentially making,more sales okay so the reasons I have my,profits is there's nothing worse than,finally getting your first sale finally,getting your first 10 sales and only,making three to $5 profit per sale if,you look at that after Shopify take,their cut after you eight seven days to,receive the money the chance of one of,them charge,back returning the items obviously quite,high because your dropshipping guys and,it happens therefore you're gonna get a,$15 charge back fee or a 10 pound charge,back fee and then you're gonna lose,profit from the other five orders that,you made so half the orders you made are,going to be lost profit wise straight,off the bat because one product has been,returned so to minimize the chance of,this happening guys to minimize your,losses up your profits that means you're,covered if someone does a charge back,you've made enough profit with your,products to actually get through that,charge back and still be profiting,afterwards now what else does it mean,guys it means that they're more likely,to order and I'm gonna tell you why,everyone thinks that if you're gonna,sell a five-dollar watch that the,consumers gonna go mad they're going to,be buzzing they're gonna buy they're,going to buy 50 of the watches just,because they're five dollars and it's,the opposite to how it works guys if you,look at a five dollar product guys if,you look at something that costs five,dollars,what do you instantly think when you see,that product from that brand I'll tell,you I think I think cheap no quality I,don't want it if it's cheap if it's five,bucks it means no one wants it they're,trying to sell at a low price to,actually get it out there because,they're they're not they're struggling,to sell it so they're literally giving,it away for free it means there's a no,quality because it's impossible to make,something of high quality for five,dollars and the third reasons obviously,no one wants it so therefore I won't,wants it so that's a simple psychology,behind what happens when you see a,five-dollar product so for all of you,that come to me that are under selling,each other you're trying to get the,lowest price you're trying to be the,cheapest watch on the marketplace for,three to five dollars per watch $10,maybe then you're doing it wrong guys,because profit is key here there's no,point putting all that time in to make,your first sale and not make any money a,lot of you always look at revenue you,never look at profit now profit is the,only thing that you're gonna see after,you've paid for the order to pay for the,shipping you risk that chance of a,charge back the only thing you're gonna,see is profit so you need to work at,maximizing that so that when you do see,it it's high and it's actually going to,make an impact to your income unless,you're able to sell thousands and,thousands and thousands of these watches,for five dollars you need to up your,margin by about 10 to 20 dollars so,you're making at least 15 to 20 pounds,per product which is about $25 that's,what I aim for at least 15 to 20 pounds,profit because it covers the time to,make the order it covers the risk of the,charge back and it also means that I'm,actually going to get a good amount of,profit in my pock,when I do make those sales every day,okay so that's what happens guys so now,let's imagine I'm looking at a $30.00,watch okay guys now that's still a cheap,watch if you look at the watch,marketplace in general you got high-end,watches worth thousands and thousands,you've got a lot of mediocre watches,that cost hundreds of pounds so even a,thirty to forty pound watch is still a,reasonably priced watch is still quite a,cheap watch in my eyes so you need to,look at that and ensure that your thirty,to forty dollar watch looks like a,thirty to forty dollar watch so with the,branding you need to ensure the websites,nice the website is extremely key guys,because if they click onto your Shopify,debut theme website there's a big watch,on the front with a couple of Chinese,logos in the corner it's going to be a,nose straight away guys the amount of,you that have like a free category on,your website so I'll click on your,website because I get a lot of you ask,me to check your websites every day so I,see a ton of them but if I click on your,website and there's a category for free,products,that's straight off the bat ruins any,credibility your website has traffic,will disappear and you'll just look like,a low-quality kind of cheap store and,unless the opposite you want the premium,feel okay so I need you to tell an to,consideration when you're planning your,branding when you're planning your,website build you're planning your niche,look at the premium aspect that you can,bring to that niche because if you can,nail down premium if you can make your,brand look premium feel premium then,you're gonna make a lot more money for,yourself if you sold one thing with $40,profit you would need to sell 10 to 20,of those if you're only making 2 to 4,dollars profit before so you need to,look at that compare the time it's going,to take you to sell 20 to 40 with a,couple of bucks profit and compare that,to the time it will take to sell one,product for $40 profit now it's not a,high ticket product but it's just,putting that small kind of premium feel,against it allows you to maximize your,profits maximize your earnings and,actually make a difference to your,income it's all about being efficient,with your time guys and ensuring that,your time is worth the money that you're,making because at the end of the day you,can't do it forever you need to be,ensuring that the time you're putting in,is making you money so there's no point,doing it if you're re making a couple,bucks per product so ensure that your,profit margins are high try and go,through the whole premium aspect with,whatever your insurance or there's a way,you can twist it to add a premium aspect,I do it to everything I do guys so,ensure that you've added that premium,twist you take more time into creating,your website,to creating your Instagram pages and,really solidifying the logo the name and,the brand and then you're gonna be able,to maximize the profits and a lot more,money for yourselves and actually find,it worthwhile as opposed to kind of,messaging me three months down the road,saying you made a hundred orders but,you've only made a couple hundred bucks,so so you need to put the time in now,maximize your profits solidify your,branding and then move on guys into,scaling and automating that okay so,that's just a short video guys I wanted,to go to the psychology of what happens,when I look at a four dollar watch and a,forty dollar watch and why you should be,selling a forty dollar and you'd,probably be able to sell more of them,than the four dollar okay so take that,into consideration put that into your,brand and get to work guys I'll see you,on the next video as always if you,gained value guys hit that like button,and leave a comment and if you aren't,subscribed already please ensure your,subscribe to being with the chance of,winning the 2000 subscriber giveaway,okay thank you so much for watching guys,I'll see you on the next one peace,you ain't messing with the flow you,ain't messing with my vision messing,with the money you ain't messing with,decisions yeah you messin with the team,with the squad Monsieur one of us you,messing with the ball yeah yeah yeah,staying up late making the right living,it up to my name focused on doing it,better you just be doing the same you're,doing a name I'm doing like everything

Congratulation! You bave finally finished reading how to adjust margins in shopify and believe you bave enougb understending how to adjust margins in shopify

Come on and read the rest of the article!