Pricing is one of those things that sounds straightforward until you actually sit down to do it. Then it gets complicated fast.
This is where most early-stage founders get stuck. Not because they can’t do the maths — but because they’re not sure what should go into the calculation in the first place. And underneath that, often, is a quieter question: am I allowed to charge what this is actually worth?
The short answer is yes. Here’s how to work it out.
Start with your costs
Before you set a price, you need to know what it actually costs you to deliver your product or service. This means everything — not just the obvious bits.
Materials and supplies. Your time, valued at a realistic hourly rate. Packaging. Travel. Market pitch fees or other selling costs. A proportion of your phone bill, your data, your equipment. The hour you spent on admin, on invoicing, on getting ready.
Write it all down. Add it up. That’s your cost base — and your price needs to cover it before anything else.
Then add your margin
Covering your costs keeps you afloat. Adding a margin is what makes the business worth running.
A margin gives you room to absorb a quiet month, invest in new stock, or simply pay yourself properly for the work you’re doing. It’s not greed. It’s sustainability.
How much margin you add will depend on your market, your product, and what customers in your sector expect to pay. Research what comparable products or services cost. You don’t need to be the cheapest — and in many cases, you shouldn’t be.
Check your price against the market
Once you have a number in mind look around. What are others charging for something similar? This isn’t so you can undercut them — but so you understand where your pricing sits and why.
If your price is higher, you need to be able to explain the difference: better quality, a more personal service, something distinctive about what you make. That’s fine. Own it but be sure to share that info in any of your marketing or promotions.
If your price is lower, ask yourself honestly whether that’s a deliberate choice — or whether you’ve undervalued your work.
A note on the Thrive market
If you’re trading at the Thrive market, or thinking about it, your pitch costs are a real business expense. Factor them in. A market stall that doesn’t cover its own costs — including your time — isn’t working hard enough yet. Understanding your numbers properly is what helps you figure out why, and what to change.
Your next step
If you’d like support working through your pricing, Tree Shepherd’s mentoring team can help. Book a session by reaching out to us via email or DM us on socials.
