Pricing your products is a bit like dating(FR😂) — you don’t want to sell yourself short, but you also don’t want to scare people away.
If your prices are too high, customers will run.
Too low? You’ll work hard for pennies.

The sweet spot?
A price that attracts customers AND makes you a solid profit.

Let’s break down exactly how to price your products for maximum profit without overthinking it!

1. The Biggest Pricing Mistakes to Avoid

Before we talk about the right way, let’s make sure you’re not falling into common traps:

🚫 Pricing Too Low – Sure, low prices bring in customers, but if you’re barely covering costs, what’s the point?
Cheap prices = cheap brand image.

🚫 Copy-Pasting Competitor Prices – Just because they price their product at $50 doesn’t mean they did it right.
Your costs and goals are different.

🚫 Ignoring Perceived Value – People don’t just pay for the product; they pay for the experience, quality, and brand reputation. If you charge too little, they might think your product is low-quality.

🚫 Not Factoring in ALL Costs – Materials, time, packaging, shipping, marketing—it all adds up. Many businesses undercharge because they forget hidden costs.

2. The Right Way to Price for Profit

Now, let’s get to the good stuff—how to actually price your products smartly.

Step 1: Calculate Your Costs

Before slapping a price tag on your product, you need to know your numbers.
Here’s what to include:

✅ Product Costs – Raw materials, packaging, manufacturing.
✅ Labor Costs – Your time or employees’ time spent making the product.
✅ Overhead – Rent, software, marketing, website, and business tools.
✅ Transaction Fees – Payment processor fees (PayPal, Stripe, etc.).
✅ Shipping & Delivery – If you offer free shipping, build it into the price.

📌 Example: If a handmade candle costs you $5 in materials, $3 in labor, and $2 in packaging, your total cost per unit is $10.

Step 2: Choose a Profitable Pricing Strategy

Now that you know your costs, let’s pick the right pricing method:

🔹 1. Cost-Plus Pricing (Simple & Safe)

The most basic formula:

👉 Total Cost + Markup % = Selling Price

📌 Example: If your candle costs $10 to make, and you want a 50% profit, you’d price it at $15 ($10 + 50%).

✅ Good for: Handmade products, retail items.
❌ Bad for: Luxury items (since price isn’t based on perceived value).

🔹 2. Value-Based Pricing (Charge What It’s Worth)

Instead of just covering costs, price based on the value you provide.

📌 Example: If your candles are organic, hand-poured, and last longer than competitors, people might be willing to pay $30 instead of $15.

✅ Good for: Premium, niche, and high-quality products.
❌ Bad for: Commodity items with little differentiation.

🔹 3. Competitive Pricing (Stay in the Game)

Look at what competitors charge and position yourself accordingly:

✔ Price higher if your product is better (premium brand).
✔ Match price if your product is similar (standard market rate).
✔ Price lower if you want to attract bargain hunters (not recommended for long-term success).

📌 Example: If competitors sell similar candles for $25, you might price yours at $27 with better packaging to appear higher quality.

Step 3: Test & Adjust

💡 Pricing isn’t permanent! If sales are slow, try raising prices instead of lowering them. Many businesses find that higher prices attract higher-quality customers.

👀 Pro Tip: Try A/B testing different prices to see what sells best!

3. Bonus: Psychological Pricing Tricks That Work

Humans are weird, and psychology plays a HUGE role in pricing.
Use these hacks to boost sales without changing much:

🔹 Charm Pricing: Price at $29 instead of $30—people see $29 as “cheaper.”
🔹 Bundling: Sell 2-for-1 deals or create packages to increase average order value.
🔹 Premium Options: Offer a higher-priced “deluxe” version to make your regular product seem like a steal.
🔹 Odd Pricing: Prices ending in 7 or 9 ($47, $97, etc.) tend to convert better than round numbers.

4. How We Can Help

If you need help with pricing, branding, or selling your products online, Archaeo Agency has your back! 🚀

🔹 Want a high-converting eCommerce website? We build stunning online stores that drive sales.
🔹 Need marketing that actually works? We create powerful strategies to help you sell more.
🔹 Looking to optimize your pricing? We analyze your market & costs to maximize profits.

💡 Get started today at ArchaeoAgency.com!

Final Thoughts

Pricing isn’t just about numbers—it’s about perception, value, and strategy. If you price too low, you’ll lose money. If you price too high without justifying it, customers will walk away.

The key? Find that perfect balance where customers feel they’re getting a great deal—and you’re making great profits.