How I Priced My Products Wrong for 3 Months
I bought handmade candles for $10 and sold them for $15. I thought my markup was 50% and I was happy. But I didn't know if 50% was enough to cover shipping, Etsy fees, and ads. I was just guessing.
The Markup Problem
Most freelancers and small sellers guess their markup. "Let me add $5". But $5 on a $10 product is different than $5 on a $100 product. You need a percentage system.
The Easy Markup Formula
Formula: (Selling Price - Cost) / Cost x 100
Example: ($15 - $10) / $10 x 100 = 50% markup. Simple.
My Recommendation for Beginners
Don't calculate on your phone's basic calculator. It's slow. Open Advanced Calculator, enter cost and selling price, it gives you markup %. I now check every product: if markup is less than 60%, I don't sell it. This rule saved my business.
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