Selling tips

How to price your products so you actually make a profit

Learn the difference between markup and margin, add up your real costs, and use a simple formula to set prices that cover your time and leave real profit.

October 3, 2026 · 3 min read

Many small sellers set prices by looking at what others charge, or by adding a number that "feels right". That works until you find that you have been busy all month and have almost nothing left. A few simple steps will fix this.

Step 1: Find your real cost

Your cost is more than the price you pay your supplier. Add up everything it takes to get one item to a customer:

• What you paid for the item or the materials
• Packaging (bags, boxes, tape, stickers)
• Delivery or courier costs you pay, if you offer free delivery
• Fees from your wallet or bank, if they apply
• Costs shared across items, such as rent, electricity or phone credit, divided by the number of items you sell

If you make products yourself, include your own time. A price that pays for the materials but not for your hours is a hobby, not a business.

Step 2: Understand markup and margin

These two words look similar, and mixing them up is the most common pricing mistake.

• Markup is the amount you add on top of your cost, as a percentage of the cost.
• Margin is the share of the selling price that is profit.

Here is an example. An item costs you 8,500 Ks in total, including packaging.

If you wanted to keep 30 percent of every sale but used a 30 percent markup, you would earn less than you planned. When you plan profit, think in margin.

Step 3: Use the margin formula

To reach a target margin:

Price = Cost divided by (1 minus your margin)

For a 40 percent margin on a cost of 5,000 Ks: 5,000 divided by 0.6 is about 8,333 Ks. Round to a friendly number such as 8,500 Ks.

A reasonable margin depends on your products, but many small shops aim for between 30 and 50 percent. Handmade and custom items often need more, because they take more time.

Step 4: Check the market

Now compare your price with similar shops. Not to copy them, but to understand where you stand.

• Much higher than others? Your photos, quality, packaging or service need to justify it. Say so in your description.
• Much lower than others? You may be leaving money on the table. Customers often read a very low price as low quality.
• Similar? Compete on quality, speed and service, not on being the cheapest.

Step 5: Plan for discounts

If you run promotions, your starting price needs room for them. A product with a 30 percent margin cannot take a 30 percent discount without selling at no profit. Decide in advance how much discount you can afford, then read how to create promotions that sell.

Step 6: Decide how to handle delivery

There are three common ways:

1. Charge delivery separately. Fair and simple, but some customers dislike the extra cost at the end.
2. Build delivery into the price and offer free delivery. Customers like it, but make sure your margin includes it.
3. Free delivery above a set amount, which encourages bigger orders.

Whatever you choose, state it clearly in your shop description so there are no surprises.

Step 7: Review your prices

Costs change. Check your prices every few months, and whenever your supplier raises theirs. If you need to change the price of many products at once, use the Bulk Adjust Prices tool on the Promotions page, but remember that it makes a permanent change.

Revenue is not profit, so look at your daily sales together with your costs to see how the shop really performs.