High-ticket sales involve selling high-price items that can bring in a lot more money per sale than selling smaller items. With high-ticket sales, you can get more out of each sale but the tradeoff is that it will take longer to make a sale. Examples include selling jewelry, luxury cars, and designer apparel.
In the context of dropshipping, high-ticket sales are a good way to increase your profit margins as long as you have a solid strategy for reaching customers with the means and motivation to afford them.
As you start dropshipping on eBay, Shopify, or any other platform, you should be aware of these client profiles so that you can choose the one that suits you. If you choose high-end dropshipping, you’ll be specializing in expensive items, which generate high-ticket sales. This article offers you important details about high-ticket sales so you can have a clear picture of what to expect from your business.
A high-ticket sale is the sale of a high-value or high-priced item–high-ticket products cost a lot of money and offer consumers high value. Basically, a high-ticket sale involves selling expensive items like jewelry, automobiles, etc. Under normal circumstances, high-ticket products or services should cost $1,000 or more and give clients high value.
As you price your high-ticket products, don’t fall into the trap of wanting to make more profit than is reasonable. Beyond adhering to some basic ethics of dropshipping, adding high profit margins to an already pricey product is going to make it that much more difficult to sell.
Traditionally, retailers doing dropshipping focused more on low-ticket products like pet toys, clothes, and other more affordable products. However, this tradition has changed as more dropshipping businesses want to sell high-ticket items because of their high margins. High-ticket dropshipping has introduced the luxury factor with items like diamond engagement rings, high-end cars, sports bikes, 3D printers, etc.
With high-ticket dropshipping, there isn’t an official price of the product–you are at liberty to set your preferred price. However, don’t set the prices too high because they might scare away potential customers. Keep your prices reasonable to improve your chances of making more high-ticket sales.
Generally, products that go for between $200 and $15,000 are considered to be high-ticket items in dropshipping. High-ticket dropshippers usually source their items from local manufacturers or suppliers and sell them under the manufacturer’s brand name. Low-ticket dropshippers, on the other hand, tend to rebrand their cheap items and sell them under their brands.
The benefit of high-ticket dropshipping is the fact that it offers a higher profit margin and it’s not dependent on high sales volumes. You can make enough profits from a single high-ticket sale. Furthermore, this type of dropshipping allows you to trade on the manufacturer’s reputation, especially if they’re well-established in the industry.
Before you set up your high-ticket dropshipping business on eBay or any other platform, be sure you have the right products. This means researching extensively and comparing various high-ticket products to determine which ones are likely to perform better.
The first area of research should be the price point so that you don’t choose products that are extremely expensive or too cheap; the best high-ticket price should be between expensive and economical. Additionally, you may want to consider working with multiple brands so that when one fails, you can easily get the same product from another brand.
Lastly, be sure to offer various products to meet the needs of every client, and choose products that are in high demand and that have limited competition to improve your chances of making more high-ticket sales.