How to Price Your Products So You Actually Make Money
Part of the free 14-week financial series for small store owners. See all lessons →
Copying a competitor's price tells you nothing about whether that price works for your business.
The problem with matching the shop next door
Their rent, their supplier costs, their volume, none of it is the same as yours. A price that works for them can quietly lose money for you, and the only way to know is to check your own numbers, not theirs.
A simple way to check
Know your true cost per item. Not just what you paid the supplier. Include the share of overhead that item is carrying.
Check your margin after variable costs, on every major line. A price that looks fine on the shelf can leave almost nothing once real costs are subtracted.
Revisit pricing when costs move, not once a year. Supplier prices creep. If your prices don't move with them, your margin quietly shrinks even though nothing on the receipt looks different.
The CPA read
If a price hasn't been reviewed since it was first set, it's worth checking today. Costs move constantly. Prices set once tend to stay still.
Know if your pricing is actually working
Clarity by Margini flags when your margin isn't covering the true cost of a sale, in plain English, before it becomes a pattern.
For educational purposes only. This lesson provides general guidance, not financial, tax, or investment advice. Always consult a qualified professional for your specific situation.