How to Price Small Business Products Without Second-Guessing Yourself

Pricing can feel like guesswork when you’re just starting out. Charge too little, and you might lose money. Charge too much, and you risk scaring off potential buyers. But with the right approach, pricing becomes a tool—not a hurdle.

Whether you’re selling handmade candles, potted herbs, or raw honey, here’s a simple guide to help you price your small business products with clarity and confidence.

1. Know Your Costs (All of Them)
Start with your expenses. That means direct costs like materials and packaging, and indirect costs like tools, electricity, or website fees.

Example:
Let’s say you’re selling beeswax candles.

Wax and wicks: $4

Jar: $2

Label and packaging: $1

Overhead estimate per product: $1 Total cost per candle: $8

Knowing this number keeps you from accidentally underpricing and helps you track real profit.

2. Understand Your Break-Even Point
Once you know your costs, ask yourself: how much do I need to sell to recover them?
If you spend $200 on supplies and each item earns $20 in profit, you’ll need to sell 10 units just to break even.

Everything beyond that is actual income—and planning around your break-even helps you set realistic goals.

3. Set a Price That Reflects Value, Not Just Cost
Don’t just double your costs and call it a day. Think about the value you offer:

Is your product handmade or unique?

Do you use high-quality ingredients or materials?

Does your brand support sustainability or community?

All of this adds value. Buyers often pay more for a product that tells a story.

4. Research Similar Products
Check marketplaces, local shops, or online stores.
What are others charging for something similar?

You don’t need to match the lowest price—just make sure you’re within a believable range, and then let your brand’s personality, product quality, or purpose stand out.

5. Test, Adjust, and Be Confident
Start with a price, observe how people respond, and adjust if needed. Pricing isn’t set in stone—you can experiment. You can run promos. You can even raise your prices once you’ve built a customer base.

Just make sure you communicate value clearly and stay confident in what your product is worth.

Final Tip

Don’t apologize for your price. Stand by it. You’re offering something with thought, effort, and quality behind it—and that’s something people are happy to support.