How to price a product without overlooking small costs
DailyUseKit · Updated 4 October 2026
Start with the cost of one sale
The purchase or ingredient cost is only the starting point. A bag, label, container, payment charge or transport allocation can change the profit on a low-priced item. Write down the costs incurred for every sale before deciding on a price.
Allocate shared costs carefully
If transport costs 100 for a batch of 20 sellable items, the transport allocation is 5 per item. If a batch costing 600 produces 30 sellable portions, its ingredient cost is 20 per portion. Use sellable output rather than planned output when some stock is unusable. Do not count the same expense again as a daily fixed cost.
Example: a packaged item
An item costs 80 to buy, packaging is 5 and allocated transport is 5. Total variable cost is 90. At a 25% target margin, the suggested selling price is 120. The 30 remaining on each sale is not automatically take-home income: stall fees, other daily expenses and applicable taxes may still need to be paid.
Compare several options
At a price of 110 the same item contributes 20 before daily fixed expenses. At 120 it contributes 30. If daily fixed expenses are 150, you need 8 sales at 110 to cover them, or 5 sales at 120. This assumes each item has the same cost and every sale is collected.
Keep the estimate current
Review costs when supplier prices, packaging or transport change. Separate the price calculation from tax advice: the calculator does not know your local tax status. Check real receipts and local requirements before treating an estimate as your final accounts. Use the daily-profit calculator next to test the effect of fixed expenses and sales volume.