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