ROI Calculator
💰 Product Import Price is calculated using this formula:
(CN Product price + CN Shipping price) + 20% VAT
‼️ Prices need to be written in RON!
💰 Product Selling Price is composed from Product Selling Price + Domestic Shipping Price which we usually set as 7 RON (even tho we pay ~15 to the courier company)
💡 When pricing your products, you want the first piece to make you at least 100% ROI.
❗ 2nd and 3rd piece should offer the client a substantial DISCOUNT, following a pricing strategy such as this one:
1st piece → 99 RON (Product Cost is by example 15)
2nd piece = 99 + 60% more → 159 (so 40% discount of the 2nd piece)
3rd piece = 2*1st piece → 199 (so 2+1 FREE)
In this case, maybe you make 20 RON profit on the 1st piece, but on the second piece you have 45 RON added profit and on the 3rd you will have 24 added profit.
If a customer buys 1-2-3 pieces from you, you will have the SAME AD, shipping and fulfillment COST, so your ROAS will go up.