What is the best method to calculate price point for a product that you will be selling

Cost x 1.3

You need to know your per unit cost of production.


Then you need to know the average profit margin in your industry. Some trade publication would probably be a way to find that out.

That gets you pretty close to the price you need to charge.

Then you need to understand what differentiates your product, and whether you can charge more, or need to charge less based upon perception of quality by buyers.

Normally some focus group testing gives you that.

If you are the manufacturer, do not sell your product at less that a 100% mark up.

Rape them hard. No mercy. Especially if it is an item they can’t elsewhere

If you have to ask this question, I really do not think you should be trying to sell anything.

I can assume that there are no rmcs or product developmental or design costs. Who is your target customer? Wholesale or retail?

Basically, you need to determine what your overhead is, then where you want your gp to reach your np. In other words, cost of sale.

Depending on what you are selling, you will need general liability, an umbrella, an accountant and a lawyer.

That is, if you have anything worth selling.

If you are have an inventory, you need to find out how much the pound of flesh is wherever your location is. Then you will have to have records for local sales vs out of state sales, collecting tax ids from your resellers and paying the state tax of where you sell retail into another state.

If you are selling a little here, little there, not through distribution, then you do not need to worry about any of the above. Unless, sam figures out you are selling something on the side.

You double the cost. Then give '10% discounts'.

+40%