How do you price your product?

1. Cost-Plus Pricing (a.k.a. "Cover Your Costs + Profit")

How it works: Add up how much it costs to make your product, then add a percentage on top for your profit.

Example: You’re making friendship bracelets.

• Beads + string: $2

• Your time: $3

• Packaging: $1

• Total cost: $6You want to make a 50% profit → $6 × 1.5 = $9Selling price: $9

Good for: Handmade products like jewelry, candles, or snacksWatch out for: Underestimating your time or hidden costs

2. Bundle Pricing

How it works: Sell a group of items together at a slightly lower price than if bought separately.

Example: You sell lip balms for $4 each.Bundle 3 for $10 instead of $12.More value = more sales!

Good for: Skincare, art prints, stationery

Watch out for: Losing profits if the discount is too deep

3. Competitive Pricing (a.k.a. "What Are Others Charging?")

How it works: Check out what other sellers your age are charging for similar products. Price yours similarly or a little less if you're new.

Example: Other teen bakers sell cookies at $2 each. You might sell yours for $1.75 to stand out, especially if they taste amazing!

Good for: Popular products with a lot of sellers

Watch out for: Pricing too low just to compete—don’t forget your costs

4. Value-Based Pricing (a.k.a. "What Is It Worth to People?")

How it works: Set a price based on how special or useful your product feels to your customer.

Example: You design custom-painted phone cases. Each one is unique. Customers aren’t paying just for the case—they’re paying for art. Even if it costs $5 to make, you can charge $20 if customers love your designs.

Good for: Art, custom crafts, unique services

Watch out for: Making sure your customers see the value—photos, reviews, and good branding help

5. Pay-What-You-Can (or Donation-Based Pricing)

How it works: Let your customers choose what they want to pay. This works best if you’re starting out or selling for a cause.

Example: You host a mini pop-up with your handmade bookmarks and say:“Pay what you can – all proceeds go to local animal shelters.”Some may pay $1, others $10.

Good for: Fundraisers, community events, or testing a new product

Watch out for: No guaranteed income so use it sparingly

6. Intro or Launch Pricing

How it works: Start with a lower price to attract first customers, then raise it once you’ve built a following.

Example: You launch a cookie business and offer them at $1 for your first week.Once people love them, raise the price to $1.50.

Good for: New businesses or products

Watch out for: Making sure you tell people it's a “limited-time” deal

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