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Pricing Your Product

Most store owners set their price by multiplying the product cost by 3. On a EGP 180 product that gives EGP 540, which looks like a healthy margin. But at a 70% delivery rate and a EGP 220 CPA, that order actually loses EGP 26.

Enter your real costs and get the selling price that leaves the margin you want.

Free to use. The numbers you enter stay in your browser.

Product pricing

All amounts in EGP

Your business, per month

Rent, salaries, software and other running costs. Leave out stock purchases and marketing spend.

%
items

Per order

%
Recommended selling price EGP472
Profit EGP 79 per item
  • Product 180
  • Packaging 12
  • Ads 141
  • Fixed costs 60
  • Profit 79

Split per item. Ad cost is divided by your delivery rate, because you pay for ads on every order, including the ones that never arrive.

Break-even priceEGP 393
Ad cost per itemEGP 141
Fixed cost per itemEGP 60

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Pricing Approaches

Three Ways to Set a Price

Share of companies using each approach, averaged across two decades of pricing surveys in the US, Europe and Asia (Hinterhuber, Journal of Business Strategy, 2008).

Used in this tool
37%of companies price this way

Cost-based pricing

Start from what each delivered order really costs you, then add the margin you want on top.

  • Product, packaging, ads and fixed expenses
  • Failed deliveries covered by the orders that arrive
  • The net margin you choose
44%of companies price this way

Competitor-based pricing

Check what similar stores charge and price close to them. Quick to set, but their costs, delivery rate and ad spend aren't yours, so the same price can make them money and lose you money.

17%of companies price this way

Value-based pricing

Price by what customers are willing to pay for the product. It can earn higher margins, but without knowing your full costs you can't tell whether a price actually makes money.

Pricing App · Free Tool

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