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- 🛒📦 DAY 3: Pricing For Profit 🛒📦
20 OCTOBER 2025
💰THE DIGITAL ECONOMY💰
"The E-Commerce Opportunities"
A weekly, action-driven resource designed to empower youth across South Africa and global readers to build wealth through online selling.
Delivered every Thursday, this newsletter acts as your personal roadmap to creating, launching, and scaling an online store, whether you’re in Durban, Polokwane, or anywhere in the world.
DAY 3: Pricing For Profit
The Money-Making Pricing System
Awe, E-Commerce Conqueror!
The R890 Secret: How to Price So LOW They Buy, So HIGH You Bank R50 000+
Today is the day that separates the R5 000 earners from the R50 000 earners.
Same products.
Same platform.
Same festive season.
But DIFFERENT pricing = DIFFERENT bank account.
Here's the brutal truth:
❌ Price too HIGH = 0 sales = R0 in your pocket
❌ Price too LOW = 100 sales = R0 in your pocket (after costs)
✅ Price it RIGHT = 50 sales = R22 500 in your pocket
Today, you learn the ONE skill that makes you RICH instead of just BUSY.
By 8 PM tonight, every product will have a price that:
💰 Makes customers say "YES!"
💰 Makes YOU say "YEBO YES!" when the money hits your account
💰 Makes your competitors wonder how you're making so much
Last year, one participant repriced her products on Day 3.
Same store.
Same products.
NEW PRICES.
Week 1 earnings: R1 200
Wala!
Week 2 earnings (after repricing): R8 900
That's R7 700 MORE in her pocket just from PRICING.
Today, we make sure every sale makes you RICH, not just tired.
Let's print money.
S'Phanda Sonke Nge E-Commerce - we PROFIT elke dag!
Part 1: The R44 500 Mindset Shift
🎯 Learning Objective: Understand that pricing shapes your lifestyle, not just your profits
THE HARSH TRUTH:
Most beginners underprice because they think:
- "Nobody will buy if it's too expensive"
- "I'm new, I can't charge that much"
- "Competition is cheaper"
- "I should be grateful for ANY sale"
What this thinking COSTS you:
SCENARIO: Beauty hamper business
BROKE PRICING (Undervalue yourself): Sell hamper for R350
Cost: R180
Delivery: R70
Packaging: R30
= R70 PROFIT per sale
To make R20 000/month: You need 286 sales
That's 10 sales EVERY DAY for 30 days
Burnout. Exhaustion. Quitting.
WEALTHY PRICING (Know your worth):
Sell hamper for R680
Cost: R180
Delivery: R70
Packaging: R50 (premium)
= R380 PROFIT per sale
To make R20 000/month: Need 53 sales
That's 2 sales per day for 30 days
Sustainable. Profitable. THRIVING.
THE R360 000 DIFFERENCE:
Over 12 months:
- Broke Pricing: R20K × 12 = R240 000 (if you don’t burn out)
- Wealthy Pricing: R50K × 12 = R600 000 (sustainable pace)
Same products. Same you. Different price. Different LIFE.
INTERACTIVE EXERCISE 1: "What's Your Time Worth?"
Use: "The True Cost Calculator"
Calculate YOUR hourly rate:
CURRENT PRICING:
Product price: R_____
Costs: R_____
= Profit: R_____
Time per sale:
Product sourcing: ___ mins
Photography: ___ mins
Posting/Marketing: ___ mins
Customer service: ___ mins
Packaging: ___ mins
Delivery arrangement: ___ mins
TOTAL TIME: ___ mins
YOUR HOURLY RATE: R_____ profit ÷ (___ mins ÷ 60) = R___/hour
IS THIS ACCEPTABLE?
☐ Yes, I'm happy with R___/hour
☐ No, I deserve MORE
If NO, you need to:
RAISE YOUR PRICES (Easiest solution)
Lower your costs (Harder)
Speed up your process (Takes time)
OPTION 1 = INSTANT R20 000+ more per month
REALITY CHECK:
R50/hour = R8 000/month (poverty wages)
R150/hour = R24 000/month (surviving)
R300/hour = R48 000/month (thriving)
R500/hour = R80 000/month (WEALTHY)
Your pricing decides which category you're in.
Part 2: The 5 Pricing Strategies That Print Money
STRATEGY #1: The Bundle Breakthrough (R890 profit per sale)
The Problem:
Selling individual items means low prices and low profits.
The Solution:
Bundle 3-5 items to create higher perceived value, allowing premium pricing and R890 profit.
REAL EXAMPLE:
BEFORE (Individual Sales):
Item 1: R150 (R50 profit)
Item 2: R120 (R40 profit) Item 3: R180 (R60 profit)
Total: R450 (R150 profit) for 3 separate sales
AFTER (Bundle):
"The Ultimate Glow Bundle"
All 3 items packaged beautifully
Price: R680 (R380 profit) for ONE sale
SAME ITEMS, BUNDLED:
Less work (1 sale vs 3)
Higher profit (R380 vs R150)
Better customer experience
More perceived value
DECEMBER IMPACT:
Individual sales: 90 items sold = 90 transactions = R13 500 profit
Bundle sales: 30 bundles sold = 30 transactions = R11 400 profit
WAIT, that's less?
NO! Because bundles sell BETTER:
50 bundles × R380 = R19 000 profit
Same effort, R5 500 MORE in your pocket!
🎯 ACTIVITY 1: Create Your First Bundle
Use: "The Profit Bundle Builder"
STEP 1: Choose 3-5 complementary products
Example (Beauty products):
- Face cream (Cost: R45)
- Lipgloss (Cost: R35)
- Body butter (Cost: R55)
- Face mask (Cost: R25)
- Bath salts (Cost: R20)
Total Cost: R180
STEP 2: Calculate individual vs bundle pricing
INDIVIDUAL PRICING:
Face cream: R120
Lipgloss: R90
Body butter: R150
Face mask: R65
Bath salts: R55
TOTAL if sold separately: R480
Your profit: R150
BUNDLE PRICING:
"The Self-Care Sunday Bundle"
All 5 items + premium box + ribbon
Price: R680
Cost: R180 + R50 (packaging)
PROFIT: R450 (3 x MORE)
STEP 3: Create urgency and scarcity
"Self-Care Sunday Bundle"
R680 (Worth R890 if bought separately - SAVE R210!)
Limited Edition:
✅ Only 20 bundles available
✅ December delivery guaranteed
✅ Gift-wrapped FREE
✅ Personal thank-you card included
Price after Nov 30: R890
Order now: R680 (SAVE R210!)
COST YOUR BUNDLE:
Product 1: __________ (Cost: R___)
Product 2: __________ (Cost: R___)
Product 3: __________ (Cost: R___)
Product 4: __________ (Cost: R___)
Product 5: __________ (Cost: R___)
Total Cost: R____
Packaging: R____
Delivery: R____
Bundle Price: R____
PROFIT PER BUNDLE: R____
If you sell 50 bundles: R____ × 50 = R_______ PROFIT! 💰
STRATEGY #2: The Anchor Price Psychology (Makes R680 Feel Like a Steal)
The Psychology:
When customers see R1 200 then R680, their brain shouts, "BARGAIN!"
PRICING PRESENTATION:
❌ WRONG WAY:
"Beauty Bundle - R680"
(Customer thinks: "Is it worth it?")
✅ RIGHT WAY:
"Beauty Bundle
Regular Price: R1,200
BLACK FRIDAY PRICE: R680
YOU SAVE: R520! (43% OFF!)"
(Customer thinks: "OMG I'M SAVING R520!")
The Secret:
That R1 200 "anchor" price makes R680 feel like a total steal, even though your cost is just R230.
REAL RESULTS:
WITHOUT ANCHOR PRICING:
Conversion rate: 2% (2 sales per 100 views)
100 people see your R680 product
2 buy = R1 360 revenue = R760 profit
WITH ANCHOR PRICING:
Conversion rate: 6% (6 sales per 100 views)
100 people see "R1 200 NOW R680!"
6 buy = R4,080 revenue = R2,280 profit
SAME PRODUCT, SAME PRICE
3 x MORE SALES = R1 520 MORE PROFIT
Just from showing the "before" price!
🎯 ACTIVITY 2: Set Your Anchor Prices
For each product/bundle:
YOUR PRODUCT: ___________
STEP 1: Calculate your MINIMUM price
Cost + Delivery + Packaging = R____
Add 50% margin = R____ (Break-even acceptable price)
STEP 2: Set your ANCHOR price (2-3X your selling price)
Your selling price: R____
Anchor price: R____ (2.5X)
STEP 3: Create the pricing presentation
"[Product Name]
Worth R____ (anchor)
Festive Season Special: R____
YOU SAVE: R____!"
EXAMPLE:
"Glow Goddess Bundle
Worth R1,200
Black Friday: R680
YOU SAVE R520! (43% off!)"
STRATEGY #3: The Tiered Pricing Ladder (R450, R890, or R1 580 - You Choose)
The Strategy:
Offer 3 price points. Most customers pick the MIDDLE option.
THE LADDER:
BASIC Bundle: R450
- 3 items
- Standard packaging
- Regular delivery
PROFIT: R200
PREMIUM Bundle: R890 ⭐ MOST POPULAR!
- 5 items
- Premium gift box
- Priority delivery
- Personal note
PROFIT: R450
LUXURY Bundle: R1 580
- 8 items
- Luxury hamper basket
- Same-day delivery (JHB/PTA)
- Personal video message
- Free gift wrapping
PROFIT: R890!
Why This Works:
WITHOUT TIERS:
100 customers
All buy R450 bundle
= R20 000 profit
WITH TIERS:
100 customers
- 20 buy BASIC (R450) = R4 000 profit
- 65 buy PREMIUM (R890) = R29 250 profit
- 15 buy LUXURY (R1,580) = R13 350 profit
TOTAL: R46 600 profit
THAT'S R26 600 MORE FROM THE SAME 100 CUSTOMERS WITHOUT THE TIERS!
🎯 ACTIVITY 3: Build Your Pricing Ladder
YOUR PRODUCT CATEGORY: ___________
TIER 1 - BASIC (Entry level, R200-R300 profit):
Items included: ___________
Price: R____
Profit: R____
TIER 2 - PREMIUM (Middle, R400-R600 profit): ⭐
Items included: ___________
Price: R____
Profit: R____
Why it's popular: ___________
TIER 3 - LUXURY (High-end, R800-R1 200 profit):
Items included: ___________
Price: R____
Profit: R____
Special touches: ___________
PROJECTED MONTHLY SALES:
- 15 BASIC × R____ = R____
- 35 PREMIUM × R____ = R____
- 10 LUXURY × R____ = R____
TOTAL MONTHLY PROFIT: R______!
STRATEGY #4: The Festive Season Markup (December = 30-50% Higher Prices)
The Reality:
December desperation means customers pay MORE.
SEASONAL PRICING:
OCTOBER PRICE:
"Early Bird Special: R450"
(Building customer base)
NOVEMBER PRICE:
"Pre-Black Friday: R580"
(Creating urgency)
BLACK FRIDAY PRICE:
"24 Hours Only: R480!"
(Volume sales day)
DECEMBER 1-15 PRICE:
"Last Chance Christmas: R680"
(Premium for guaranteed delivery)
DECEMBER 16-24 PRICE:
"Emergency Gift Rush: R890!"
(Charging for speed and stress)
Real Example:
PARTICIPANT: Gift hampers
October: R450/hamper, sold 12 = R5 400 profit
November: R580/hamper, sold 23 = R13 340 profit
Black Friday: R480/hamper, sold 31 = R14 880 profit
December 1-15: R680/hamper, sold 45 = R30 600 profit
December 16-24: R890/hamper, sold 18 = R16 020 profit
TOTAL: R80 240 profit in 3 months
SAME HAMPER, STRATEGIC PRICING!
💸 YOUR DECEMBER GOLD MINE:
If you sell 100 items in December at R450 = R25 000 profit
If you sell 80 items in December at R680 = R36 800 profit
SELL LESS, EARN MORE
Work less, bank MORE!
🎯 ACTIVITY 4: Map Your Festive Pricing Calendar
YOUR PRODUCT: ___________
OCTOBER (Building Phase):
Price: R____
Goal: ___ sales
Profit: R____
NOVEMBER 1-27 (Momentum):
Price: R____
Goal: ___ sales
Profit: R____
BLACK FRIDAY (Nov 28):
Special Price: R____
Goal: ___ sales
Profit: R____
DECEMBER 1-15 (Prime Time):
Premium Price: R____
Goal: ___ sales
Profit: R____
DECEMBER 16-24 (Emergency Rush):
Maximum Price: R____
Goal: ___ sales
Profit: R____
PROJECTED QUARTER TOTAL: R______!
STRATEGY #5: The R890 Add-On Strategy (Increase Average Order Value)
The Power:
Once someone’s buying, they'll often add more for "just R150 extra."
THE ADD-ON FORMULA:
BASE PURCHASE: R680
"Add this for ONLY R150 more?" (Extra R100 profit)
Customer thinks: "Why not!"
NEW TOTAL: R830
YOUR PROFIT: R580 (instead of R480)
That's R100 EXTRA per customer!
50 customers × R100 = R5 000 extra/month
Real Add-On Examples:
BEAUTY PRODUCTS:
Base: Face cream bundle R680
Add-on: "Add lip gloss for R120?" (Cost R35, R85 profit)
FASHION:
Base: Dress R580
Add-on: "Matching headwrap R150?" (Cost R45, R105 profit)
GIFT HAMPERS:
Base: Standard hamper R680
Add-on: "Add chocolate & wine R280?" (Cost R120, R160 profit)
🎯 ACTIVITY 5: Create Your Add-Ons
YOUR MAIN PRODUCT: ___________
Price: R____
Profit: R____
ADD-ON 1:
Product: ___________
Price: R____
Cost: R____
Profit: R____
ADD-ON 2:
Product: ___________
Price: R____
Cost: R____
Profit: R____
BUNDLE OFFER:
"Buy [Main Product] + Both Add-Ons
Regular: R____ + R____ + R____ = R____
Bundle Deal: R____ (Save R____!)
YOUR PROFIT: R____
If 30% of customers add both extras:
30 customers × R____ extra profit = R____ MORE!
PRICE COMPARISON TABLE:
PRICING STRATEGY | MONTHLY INCOME | ANNUAL INCOME | LIFESTYLE |
|---|---|---|---|
Low (Charity) | R8 000 | R96 000 | Poverty |
Low-Mid (Survive) | R20 000 | R240 000 | Struggling |
Smart (Thrive) | R50 000 | R600 000 | Comfortable |
Premium (Wealth) | R100 000 | R1 200 000 | FREEDOM |