How to price your product for your online shop? | OlingoCo
Pricing your product can be a tough decision, especially when you’re just starting out. You want to make sure you are making a profit, but you also don’t want to price yourself out of the market. In this blog post, we’ll give you some tips on how to price your product for your online shop.
Pricing Your Product
The first step in pricing your product is to figure out your cost of goods sold (COGS). This includes the cost of materials, labor, shipping, and any other costs associated with getting your product from point A to point B. Once you have your COGS, you can start to mark up your price.
There are a few different ways you can go about this, but a common method is to use a percentage markup. For example, if you wanted to markup your product by 50%, you would take your COGS and multiply it by 1.5 (1 + 0.5 = 1.5). So if your COGS was $10, your selling price would be $15.
Another method is to use a fixed dollar amount markup. With this method, you would take your COGS and add a fixed dollar amount (say $2) to it. So using our previous example, if your COGS was $10 and you wanted to markup your product by $2, your selling price would be $12.
Choosing the right method will depend on a few factors, including what kind of margins you’re looking for and what the competition is doing. If you’re just starting out, we recommend using a percentage markup so you have room to adjust as needed.
Pricing your product doesn’t have to be difficult or complicated. By following these simple tips, you can make sure you’re making a profit without pricing yourself out of the market. And if you’re ever unsure about what to do, remember that you can always adjust as needed—you’re never locked into one price forever!