Brand
How to price a product (without leaving money on the table)
Underpricing is the quiet killer of product businesses. Price too low and you work twice as hard for half the money. Here’s how to price properly.
Start with your true cost
Not just what you paid the supplier, your landed cost: unit cost + shipping + import duties + packaging + payment fees. Most new founders price off the sticker cost and are shocked when the margin evaporates. Know the real number first.
Enter how many units are in the order to share freight and clearance across them.
Landed cost, per unit
£16.51
Up to 95%.
- Margin at your price 63.3%
- Price for a 60% margin £41.28
Duty is worked on the goods plus freight, the customs value for a UK import. Look up your rate by commodity code on the UK Trade Tariff. Import VAT is left out, because a VAT-registered brand usually reclaims it; if you are not registered, add it to clearance.
Cost-plus is the floor, not the answer
The naive method is “cost × 2” or “cost + markup”. That’s a starting floor, not a price. It ignores two things that decide whether you actually make money:
- Overheads, your time, tools, marketing, returns.
- The market, what customers will actually pay.
Price to the value and the market
Once you know your floor, look up, not down:
- What do comparable products sell for?
- What does yours do better, quality, brand, story, service?
- What price makes customers feel it’s worth it and leaves you a healthy margin?
Cheapest is rarely the winning strategy. A slightly higher price with a clear reason usually beats a race to the bottom.
Check the margin every time
For each product, know your gross margin (after cost of goods) and your net margin (after everything). If you don’t know both, you’re guessing.
Notch tracks landed cost and shows your real margin per product, so pricing decisions are grounded, not hopeful.
Related: how to calculate profit margin · how to start a clothing brand.
General guidance for planning purposes.
Alongside this guide
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