Price

Price it right.

Many entrepreneurs fail to factor in all overhead costs—including shipping and duties—when considering pricing. Other mistakes: gauging incorrectly what consumers will be willing to pay, not knowing where you want to sell the product and thinking you can make the same profit margin from high- and low-end retailers. For example, selling at Nordstrom will yield a different margin than selling on Amazon and may require different packaging.

Wait to do the math until you’ve nailed down all the particulars. Once you run the numbers, if your profit margins are too low or the price you need to charge to make a profit is too high, you may need to whittle down your manufacturing costs.

Ashley Charli & Company is a fan of looking to the marketplace—at comparable products and industry margins—to calculate product price.We have always been a big believer that your cost and the price is driven by the market, unless you are creating a new market for a product. If you need help setting prices, we have the resources and knowledge to guide your business on the right path.