How to price your products: a simple framework for new store owners

Pricing your products can feel like walking a tightrope when you’re just starting your store. Price too high, and you might scare customers away; price too low, and you risk losing money or undervaluing your brand. But there’s a way to take the guesswork out of pricing with a clear, step-by-step framework that balances your costs, market positioning, and customer expectations.

understand your costs thoroughly

The foundation of any pricing strategy is knowing exactly how much your product costs to make and deliver. This isn’t just the materials or manufacturing fees—factor in packaging, shipping, transaction fees, and even the time you spend managing orders.

For example, if you sell handcrafted candles, add up the wax, wicks, fragrance oils, jars, labels, and shipping box. Then consider the fee your payment gateway charges and the commission if you’re selling through a marketplace like Etsy or Devaito. Don’t forget labor costs if you hire help or your own hourly rate.

Once you have the total cost per unit, this becomes your baseline. Pricing below this means you’re losing money on every sale, which isn’t sustainable.

research your market and competitors

Next, look around at similar products. What are other stores charging for items like yours? This isn’t about copying prices but understanding where your product fits.

Use Devaito’s product comparison features to quickly analyze competitors’ pricing and positioning. Are you offering premium quality, unique design, or faster shipping? These factors justify higher prices. If your product is more basic or targets price-sensitive customers, then a competitive pricing approach works better.

This research helps you avoid pricing too high or too low relative to what customers expect in your niche.

decide on your pricing goal

Are you aiming to maximize profit per item, grow market share quickly, or position your brand as a premium option? Your pricing goal shapes your final price.

For example, if you want rapid growth, you might start with an introductory price slightly above cost to attract buyers and collect feedback. If your goal is sustainability and brand prestige, set prices that reflect the quality and exclusivity.

calculate your price using a markup formula

A simple way to get a starting price is using a markup on your total cost. For example, if your total cost per unit is $20 and you want a 50% markup, price it at $30.

Markup percentage varies by industry—retail often uses 50-100%, while electronics might be lower. Devaito’s pricing tools can automate this calculation for you, updating prices dynamically if your costs change.

factor in perceived value and customer psychology

Pricing isn’t just numbers; it’s about how customers perceive value. Techniques like charm pricing (e.g., $29.99 instead of $30) can increase sales. Also, bundle pricing or offering discounts on multiple purchases can encourage higher cart values.

Think about your target customer’s willingness to pay. If your product solves a specific problem or enhances lifestyle, customers might accept a higher price. Use customer feedback and sales data from Devaito analytics to test and refine pricing based on real-world responses.

test, analyze, and adjust

Pricing isn’t set in stone. After launching, monitor how your products perform. Are some priced too high and not selling? Are others leaving money on the table?

Devaito’s reporting dashboard provides insights into sales trends, abandoned carts, and customer reviews—all valuable clues for adjusting prices.

Try A/B testing different price points if possible. Even small changes can impact your revenue significantly.

consider discounts and promotions strategically

Discounts can attract customers but erode margins if overused. Instead of random sales, plan promotions around holidays or inventory clearances.

Devaito supports scheduling promotions and tracking their impact, so you can measure what works and avoid habitual discounting that trains customers to wait for sales.

use integrated tools to simplify pricing management

Managing pricing manually can quickly become overwhelming as your store grows. Devaito offers built-in tools to sync costs, update prices dynamically, and apply rules based on inventory levels or seasonal demand.

For example, if your supplier increases material costs, your product prices can automatically adjust to maintain margins without manual intervention.

These features free you to focus on marketing, customer service, and scaling your business.

related resources to help you grow

If you’re considering migrating your existing store, check out from Shopify to Devaito: migrating your store the easy way for a smooth transition.

To drive more sales, learn how to run your first Meta ad campaign with AI-written copy and attract the right customers.

Finally, explore how how to recover abandoned carts automatically with AI email flows can help you reclaim lost revenue effortlessly.

ready to price and sell effectively?

Pricing your products doesn’t have to be a mystery. By understanding your costs, researching your market, setting clear goals, and leveraging tools like Devaito’s dynamic pricing, you can find the sweet spot that delights customers and supports your business.

Start pricing smarter today and see how it transforms your store’s growth. Explore Devaito’s product tools to get started.

faq

how do i calculate the total cost of my product?

Include all expenses related to making and delivering the product: materials, labor, packaging, shipping, transaction fees, and any marketplace commissions.

should i always price higher than my competitors?

Not necessarily. Your pricing should reflect your product’s quality, brand positioning, and customer expectations rather than just competitor prices.

how can i test different price points effectively?

Use A/B testing where possible and monitor sales data and customer feedback to see which prices drive the best results.

what role do discounts play in pricing strategy?

Discounts can boost sales but should be used strategically to avoid devaluing your products or training customers to wait for sales.

how can Devaito help me manage pricing?

Devaito offers dynamic pricing tools that update prices based on costs and inventory, plus analytics to track performance and optimize your pricing over time.