Pricing for Product-Based Businesses - Stop Undercharging

Underpricing is one of the most common reasons product-based founders burn out.

You can have a beautiful brand, a lovely community, and steady sales - and still feel like you’re running on a treadmill that never turns off.

Pricing isn’t just numbers. It’s strategy.

Why founders underprice

Common reasons:

• Fear of losing customers

• Comparing to mass-produced competitors

• Not knowing true costs

• Feeling awkward charging for skill and time

What your price needs to cover

At minimum:

• Materials and components

• Packaging

• Platform fees

• Payment processing fees

• Shipping materials

• Labour/time

• Overheads (software, studio, insurance)

• Profit (yes, actual profit)

A simple pricing method

1. Calculate true unit cost (COGS)

2. Decide target gross margin

3. Build pricing tiers (entry, core, premium)

4. Ensure wholesale pricing works (if relevant)

Discounting without damaging your brand

Discounts should be:

• Planned (not panic)

• Limited

• Tied to stock strategy

• Used to acquire new customers or clear old lines

The confidence piece

Pricing is also about owning your value.

If you’re building a brand with quality, ethics, and craft, your pricing should reflect that - and attract the right customers.

If you want help restructuring pricing and positioning, mentorship support can help you build a strategy that feels aligned and profitable.