Making $2,500.18 with one product in two days. Specifically, the reason is because of price elasticity tests. : Entrepreneur

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Hey all; I’ll cut straight to the chase and not waste your time with some guru BS and instead give a small case study.The specific lesson is: you know a hit product when you see one, but you should also run a test of price elasticity with it. A true hit product can make a super huge difference to your revenue and margins, as evidenced by this one I stumbled upon.I tested a product which I initially sold for $27.75, but I had done something which most dropshippers don’t do – to order the product in bulk – and so had a bunch I was waiting to ship my local stock to Amazon FBA yesterday.However, because the product was selling so crazily with the SAME amount of ad spend as I’d always done, I’d increased the price because I had too many orders to handle and ended up spending my spare day at home packing for hours.So I increased it to $37. People kept buying. I physically kept trying to leave the house but every time I tried a new order would come in.So I increased it to $67. Surely by now people would stop and I could leave to deliver my packages? …but nope, this turned out also not to be true.Therefore I increased it to $87. The sales finally stopped and I could go to bed (yeah, it took me my whole spare day).Or so I thought.Just waking up at 3am in the morning and had a look, and instead of purchasing less, people purchased more in bulk. So I woke up to $675.87 in sales…for $50 worth of product and with $30.61 worth of ads (I don’t use Facebook ads as much as others but my own multi-channel strategies instead which include Google Ads and email remarketing). That’s a blended ROAS of 22.1 including retargeting.So, there’s a lot of things that went right with this particular product in order to do this, and it was pretty specific to the product. I typically do local shipping (and had bought these in bulk right before coronavirus) so am not impacted by the coronavirus thing. The product description serves facts rather than excessive sales hype copy. The pricing is one thing. But most of all, the product fulfils a need which people are happy to pay $87 for, for a specific use case that I actually used it myself for.Other sellers sell it for $29. Even they come up first on search results. Doesn’t matter. My website is physically better and more trustworthy, so completely despite have the 2.5x price increase, if anything it only served to make my product look more trustworthy.Also, don’t forget to include relevant upsells. A big part of that jump was that I upsold a product that people needed to use the first product for longer periods of time. That COGs was about $5.15 each for a sales price of about $39. Needless to say, people bought that too.There’s a lot more that I could talk about, but I’ll leave it at that for now. I hope this case study was kind of useful (and for obvious reasons I can’t reveal the product or even niche, as much as I’d like to do so to make things even more legitimate, but this product is genuinely a bit too easy to replicate and therefore completely destroy my currently health margins with).It’s easy to fake these numbers and so I understand that some people therefore won’t believe them anyway, but regardless: Proof

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