Incorrect pricing might turn away customers and decrease conversions. Pricing products can seem like a difficult task. You must consider a variety of aspects, including how much I spend on materials and how much my time is worth. The tone of your small business will ultimately be determined by your pricing strategy. Are you a high-end or low-cost brand?
We’ve written this post specifically to teach you how to determine a product’s selling price. We have also used a FREE selling price calculator which makes the product pricing task much easy and simple for you. If you are running a dropshipping business/online business, then this product pricing calculator is a golden gift for you.
Your efforts will be wasted if you don’t pay attention to choosing the proper pricing. You’ll be able to determine your selling prices by the end of this article and the most effective ways to use them. You can easily find some more product pricing strategies while using this selling price calculator.
What is Product Selling Price?
The selling price, whether it be for a product or a service is the customer or client’s final price.
Understanding how to calculate selling price of product is crucial since your business won’t survive if you don’t turn a profit and establish a place in the market. In other words, calculating a product’s selling price correctly benefits both you and your client. If done correctly, you get a fair price, and they get a good deal.
Direct-to-consumer firms may be able to charge more if their brand image is highly desired, as is the case with many garment manufacturers like Adidas or Nike.
However, you’ll need a strong marketing strategy or a strong portfolio to support your price.
Use this free product pricing calculator to simplify the process of setting prices for your products. Our tried-and-trusted pricing formula will assist you in determining a reasonable price for your products, allowing you to transform your entrepreneurial idea into a successful side hustle and attract a sizable audience.
Method 1: Using a FREE Product Selling Price Calculator (Recommended Method)
Use a product selling price calculator to discover a competitive selling price for your goods. This will make life simpler and will allow you to see how different pricing points may impact your business.
- Benefits of using Product Pricing Calculator
It is fast: There is no need for paper and a pen. Results from this calculator can be obtained in less than a minute.
Free of Cost: It’s available free of cost. You don’t have to pay a single dollar to use this selling price calculator. You can just download it from google chrome store and install it as an extension into your google chrome.
It is dependable and convenient: You get accurate results using this calculator. The pricing you arrive at through calculation is the useful one. The calculator is readily available and reachable from any anywhere.
- How to Use this Pricing Calculator
This selling price calculator is a great way to figure this out. It uses a selling price formula and takes into account various pricing factors such as product cost price, shipping cost, tax and various other costs which are incurred.
You can easily input your target profit into this product selling price calculator and bingo! It gives you the best-selling price for your product.
- Practical Example of Using this Free Selling Price Calculator
To start, simply enter your
- product cost,
- shipping charges,
- various other charges which you bear on product,
- any tax
- and your target profit.
Let say your specific product cost is 100$ i.e your purchased this product for 100$. The shipping cost to deliver the product to the customer is 10$. Obviously there are some other charges which you bear on this product. They are called various charges. Let say various charges are 15$. You may have to pay the tax fee of that product as well. So, you will include the tax fee as well. Let say the tax fee is 15% (Fifteen percent).
Product Cost = 100$
Shipping Cost = 10$
Various Charges= 15$
Tax Fee 15% of above 3 costs = 18$
Total Cost= 143$
Now at the end you want to get your target profit of 50%. So add 50$ as profit to it.
Total Cost = 143$
Profit = 50$
Final Selling Price = 193$
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Method 2: Try These Production Pricing Formulas
Here are three product pricing formulas that will help you determine your pricing structure if you want to do the math yourself and include more factors, or want to change the importance of particular values.
Step 1: Calculate Base Production Cost
Base Production Cost= Costs for materials + labor + shipping + marketplace fees + other costs
For instance, $50 for mobile battery supplies + $10 for labor+ $5 for shipping, $10 for marketplace fees (if sold in-person) = $75 for the base production cost.
Step 2: Calculate Your Profit Margin
Profit Margin= Base Production cost x Markup
For example Base Product cost 75 x 50% markup = 37.5$ Profit Margin
Step 3: Calculate Your Final Product Price
Final Product Price = Base Product Cost + Your Profit Margin
Final Product Price = 75$+37.5#= 112.5$
We sincerely hope the essential elements in this product price guide assist you in developing your business idea. With a wealth of knowledge at your disposal, confidently set your prices and introduce your products. Go ahead and start selling now!
Always keep in mind that you can change your prices if they aren’t functioning. Keep all of your calculations and research; just be sure to update them as you gain more knowledge.
Are you prepared to use fast and free product pricing calculator app for your business to grow? Simply click here to download it from google chrome store and grow your business.
Product Pricing FAQs
How much profit should I make from a product?
There are many different pricing strategies to consider when determining the price of your product. You need to take into account your competitors’ pricing, your costs of goods, and profit margins. Getting your pricing right is something that takes time and a lot of extermination. However to make things simple, this product pricing calculator can help you to do this job in a quick time.
For a product that costs $100 to produce, what is a reasonable selling price?
For a product that costs $100 to produce, and if the typical gross profit margin is around 50% i.e. 50$ and you incur 50$ on all other expenses, the descent sales price would be $200.
How to price a product?
Using a product pricing calculator makes it simple to determine the product’s price automatically. You’ll need to add your variable expenses and fixed costs together to perform a manual calculation. The desired market price is then obtained by adding a profit margin.
What elements should be taken into product pricing?
These elements should be taken into account when pricing a product:
- Your business’s whole operating expenses, both fixed and variable expenditures included
- Costs charged by competitors
- Target audience desire Spending power
- The worth of your products