FYI: Setting Royalty - Squeeze every penny out of it.

[PacifierCity]

Lets say you create a product that you want to sell for $19.95.  To do so you put ... say 12% for your royalty.  And for that you earn $1.23.

If you go in and change your royalty to 12.1%, 12.2%, 12.3% etc... at some point, before the price goes up to $20.00's your earning will tick to $1.24 and the price will stay the same, $19.95.

Those numbers are completely made up, but I've found that I have many products set to sell at a certain price, but by changing the royalty by a .1 or .2, etc, I can keep that price and earn an extra penny.  So I thought I'd share as every penny counts for so many these days.

Happy selling!

PC

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[WBartworks]

Dear Pacifier City,

I always enjoy your posts and valuable insights. 😊

[Fiorenzo]

Exact the same approach I'm having on my new products. I go even further:

I've started to play with royalties on a product-by-product basis. There are products that make nice gifts and are worth a higher price tag (and higher %) with unique designs on them, and there are products that are pretty expensive and that you may want to publish at lower %. I'm also aiming at nice-looking price tags for that little "psychological" bonus that may make the difference between a sale gained or lost. You know, the famous 99.98 (not 99.99 to fool the ones who think they get fooled) instead of horrible looking 100.03 - 5 cents "lost" for a good cause.

Yep, there is a big drawback - changing prices. Still trying to recover from the actual large-scale price increase...

[PacifierCity]

I had to roll back my royalty on many products to keep them at the price points I think are fair.  I'll take the loss if sales continue...

I always price individual items.  I've never been one for having the same royalty across the board.

I will note that with the base price change, new prices are kind of funny.  We used to be able to hit .05 increments on most product I design on, but not so much in my first round of price adjustments.  I've pretty much finished 1 store.  Tomorrow I'll tackle another.  Although the next one has 5 times as many products.  We shall see how much I can change in the next 9 days... I just hope all these changes stick.

PC

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[Fiorenzo]

We are similar in our approaches in many ways. I'm also aiming at fair prices both for customers and for me as the designer. Simpler designs I offer at lower % but for the artworks that take even days to create and are unique, I ask more. I took a lot of time to tweak out the royalties last month before the 20th, first they stuck only a few days ago, and yesterday I found myself in a big mess, so I have to redo it all again. And like you, I will take the price increases mostly on my shoulders with low % and will stop spending my time on products that aren't really worth the effort, such as stationery paper - no one will pay 2$ for one sheet of USL stationery. Other products that are insanely high priced I will promote on my other POD, even if I hate to do so. Such as Puzzles. The large ones are unpayable now, and I'm not willing to make 5 bucks on a 80+$ product, sorry.

[ColsCreations]

I'm always surprised at what people are willing to pay. The best seller in my little store is tissue paper. You can get a pack of 12 sheets at the dollar store for, well, a dollar. But looking at my royalty history, people are paying an average of $2 per sheet for it and that's after whatever discounts were applied to their orders. A customer from Australia bought two sheets at $4.08 each in US dollars! That's just crazy to me. I believe though that the overwhelming majority of tissue paper sales in general are for decoupage use rather than as gift-bag filler. People are willing to pay more for something for their arts & craft DIY project than they would if they wanted just gift-bag filler. So I agree that while $2 for one sheet of stationery paper is nuts, if it has an alternative use, such as maybe for scrapbooking, people would pay it for that use.

[ColsCreations]

Yes. I set my royalty on a per-product basis as I publish them. I put in the list price I want (say $19.95) and then tick up the royalty by .1 until the price rolls over to $20.00. Then I go back one, to the highest % before the list price rolled over. This way, just as you said, you're getting the most royalty you can with no effect on the shopper's price paid.

[NPL]

Hi Pacifier City,

I have been using the same strategy since i've started out here on Zazzle. But now with all prices going up and my store has grown so much, it seems like an almost impossible job to change them all. I started yesterday, but a loooooot of work still to do.😧

Cheers and greetz from Holland

[JulieV]

Hi there, I've just found this commmunity and am in awe of you all. I've spent the last few years learning how to use various software. Have to say Zazzle has been the most challenging to learn when it comes to POD platforms, but love that there is a place to exchange ideas and give feedback. I have not even looked at pricing when it comes strategies. Thank you to everyone who shares their experience, tips and tricks. I hope to be able to do that someday! Cheers from Australia.