Many small businesses pick a price by looking at what competitors charge, then wonder why the money never adds up at month end. A safer way starts with your own numbers.
Start with your true cost
Add up everything one unit costs you: materials or purchase price, packaging, delivery to your shop, and a share of regular costs like data, transport and rent. If one unit truly costs you $85, that is your floor — never your price.
Add your margin, not a guess
Decide the profit margin you need, for example 30%. Selling price = cost ÷ (1 − margin). At $85 cost and 30% margin, that is about $121. Round it to a clean $120–$125 and check it still feels fair to customers.
Test it with real quantities
A price that works for one unit must also work for twenty after discounts and VAT. Run your numbers before you print price tags or post the product.
Try it now: open the Product Pricing Calculator, enter your cost and margin, and get a selling price you can defend.
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