Help! How Much Should I Charge?

Dear Dane, how do I know how much to charge for my new product? My product is expensive to produce. Can I pass that on to my customers?

You should absolutely charge more for your product than it costs you to make. The difference between your cost, and the amount of money you bring is called your profit. And profit is a good thing.

As far as how much you should charge, though, your sales price is totally a function of your product’s value as seen by your customers. In no way is your sales price a function of your costs to produce the product.

In other words, if your product is worth $1,000 to your customers, then that should be its price regardless if it costs you $1 or $10,000 to produce. If the profit margins are not satisfactory, then select another product to produce which has satisfactory profits.

Leave a Comment

Your email address will not be published. Required fields are marked *