A price has more jobs than covering materials
Direct costs
Include materials, inventory, packaging, shipping you pay, subcontractors, and other costs tied directly to the sale.
All working time
Count production time plus consultations, revisions, communication, sourcing, packing, delivery, and administration.
Platform and payment fees
Account for marketplace, payment-processing, transaction, advertising, and currency-conversion fees.
Overhead
Software, insurance, equipment, marketing, professional services, internet, and workspace must be funded across sales.
Profit
Paying yourself for labor compensates you for doing the work. Profit compensates the owner for risk and creates room to improve and grow.
Three useful price checks
- Break-even: the minimum price that covers true cost.
- Target margin: the price that leaves the desired percentage after costs.
- Market fit: whether the buyer understands enough value to accept that price.
If the sustainable price is higher than buyers will pay, you may need to reduce cost, change scope, improve the offer, target a different buyer, or stop selling that offer.
Calculate your price free
Build a rate from income goals, capacity, overhead, fees, and non-billable time.
Use the Pricing CalculatorCheck the real margin
See what one sale leaves after costs, fees, overhead, your time, and tax planning.
Use the Profit Calculator