Pricing workflow
How to price products and services without guessing
Use this guide when you need a quick pricing check before launching an offer, sending an invoice, or discounting a product or service.
Start with cost, not competitor prices
Competitor prices can be useful context, but they do not know your costs, delivery model, taxes, ad spend, or service time. Start with your own numbers first.
A healthy price should leave enough room for cost of goods, labor, tools, delivery, discounts, taxes, and marketing.
Check discounts, tax, and invoice totals
A discount can look small but remove most of the profit if margins are tight. Tax and shipping can also change the number the customer sees.
Before sending an invoice, check the total and confirm whether tax is being added to or removed from the price.
Do
- Calculate margin before offering a discount.
- Use the same currency and time period for every input.
- Keep notes about assumptions so you can review the price later.
Don't
- Do not price only by copying competitors.
- Do not forget service time, delivery, software, or ad costs.
- Do not treat quick tax estimates as professional tax advice.
Connect pricing to growth decisions
If you plan to advertise, a price that works organically may not work after ad spend. Use break-even and ROAS checks to understand how much room the offer has.
FAQs
Should I match competitor pricing?
Not automatically. Competitor pricing is context, but your own costs, margins, positioning, and delivery model matter more.
What should I check before offering a discount?
Check profit margin, final price, tax, delivery cost, and whether the discounted sale still supports your business goal.