One of the most common questions for entrepreneurs starting a business or creating a new product or service is: "how much should we charge?" There is no easy answer. However, there are some guidelines. Firstly, there is a minimum price, below which you will make insufficient profit. That is what this calculator will help you determine.
Once you have this figure you can decide where on the spectrum of pricing you will aim to be. The better you can express your value proposition to your target market during the marketing and selling of your product or service, the further along this spectrum you will be, achieving higher profit margins. But for now, let's start with a cost-based price estimation.
If you'd prefer to calculate a break even price, set the profit margin to zero.
How many hours are spent directly in delivering one unit of your product or service?
What is the average rate you pay for the labour to deliver one unit of your product or service?
If it's only you, what do you pay yourself or what should you pay yourself at market rate for what you do?
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