Guide
Price your product or service properly
Set a price that reflects your costs and value, not just a guess at what feels fair.
Calculate your true cost first
Include materials or time, plus a fair share of overhead like software, rent, and your own time. A price that only covers materials isn't a real price.
Research what the market actually pays
Look at comparable products or services, not to copy them exactly, but to understand the range customers already accept.
Price for the value delivered, not just the cost
If your product saves a customer significant time or money, that's worth more than the raw cost of making it. Don't leave that value on the table.
Build in a real margin, not a token one
A price that only just covers costs leaves no room for slow months, mistakes, or reinvestment. Margin isn't greed, it's what keeps the business alive.
Test it before assuming it's final
Pricing isn't permanent. Watch how customers respond and be willing to adjust, most businesses underprice at launch and correct upward over time.
That’s the whole thing.
Keep going
What to read next
- 01
Pricing & Profitability
Know your numbers: margin, markup, and breakeven
Learn the three numbers that tell you whether the business is actually working.
- 02
Pricing & Profitability
Raise your prices without losing customers
Increase prices confidently, with a process that keeps most customers on board.
- 03
Pricing & Profitability
Spot which products or services are actually making money
Look past total revenue to find out what's genuinely profitable, and what's quietly costing you.