Product Pricing Calculator
Calculate the optimal selling price for your products using multiple pricing strategies
Pricing Strategy
Choose your pricing method and enter costs
Total cost to produce/acquire the product
Target profit margin (e.g., 40% margin)
Additional Costs
Overhead, marketing, shipping, etc.
Recommended Price
$0.00
Low Margin - Review Costs
Profit Analysis
Gross Profit per Unit$0.00
Gross Margin0.0%
Markup0.0%
Net Profit per Unit$0.00
Net Margin0.0%
At this price, you need to sell 0 units to cover operating expenses.
Pricing Strategy Comparison
When to use each pricing method
Cost-Plus
✓ Simple and consistent
✓ Ensures profit margins
✗ Ignores market demand
Best for: Retail, manufacturing
Value-Based
✓ Maximizes profit potential
✓ Customer-focused
✗ Requires market research
Best for: Premium, unique products
Competitive
✓ Market-aligned pricing
✓ Easy to implement
✗ May start price wars
Best for: Commodity products
Pricing Best Practices:
- • Test multiple price points to find the sweet spot
- • Consider psychological pricing (e.g., $99 vs $100)
- • Review and adjust prices regularly based on costs and competition
- • Use bundle pricing and volume discounts strategically
- • Account for all costs including hidden overhead
- • Monitor competitor pricing but don't always match
Understanding Product Pricing
Key Pricing Terms
Margin vs Markup
• Margin = (Price - Cost) / Price
• Markup = (Price - Cost) / Cost
50% margin ≠ 50% markup!
• Markup = (Price - Cost) / Cost
50% margin ≠ 50% markup!
Gross vs Net
• Gross = Revenue - COGS
• Net = Gross - Operating Expenses
Net profit is your true bottom line
• Net = Gross - Operating Expenses
Net profit is your true bottom line
Pricing Psychology
- • Charm Pricing: End prices in 9 or 99 ($19.99)
- • Prestige Pricing: Round numbers for luxury ($200)
- • Price Anchoring: Show original price crossed out
- • Bundle Pricing: Offer packages for better value perception
Common Pricing Mistakes
⚠️ Avoid
- • Pricing too low (undervaluing)
- • Forgetting operating costs
- • Never raising prices
- • Competing only on price
✓ Do This
- • Know all your costs
- • Research competitors
- • Test different prices
- • Communicate value clearly