Most first-time entrepreneurs price too low. I did it too. Here's how to think about pricing properly.
Before you set a price, know your costs. For a physical product that means production, shipping, packaging, and any platform fees. Add them all up. That's your floor. Your price has to be above this number or you're losing money on every single sale.
Margin is the difference between what something costs you and what you sell it for. If a product costs you $10 to make and you sell it for $20, your margin is 50%.
Aim for at least 50% margin as a starting point. Lower than that and you have almost no room for marketing, mistakes, or the occasional discount.
Lowering your price to undercut competitors is a race to the bottom. There will always be someone willing to go lower. Compete on quality, brand, and experience instead.
Your first price isn't your final price. Launch, see how people respond, and adjust. If everything sells out immediately you're probably priced too low. If nothing sells, price might be one of several things worth looking at.
Round numbers feel cheap. $19 feels more considered than $20. Small detail, but it makes a real difference.
"Pricing isn't about being cheap. It's about being fair to yourself and your customers."