Money & legal
How to price your products (and keep a profit)
Three pricing methods, the fee math most sellers forget, and when to raise prices.
6 min read · Updated October 2026
Start with your real cost per sale
Add everything one sale costs you: materials or product cost, packaging, shipping you pay, any app or print-on-demand cost, and payment fees. On Sellabo the fees are your tier fee (2.9% to 3.9% of the price) plus Stripe’s processing (about 2.9% + 30¢ per card payment in the US). On a $40 sale at the Starter tier that is about $1.16 + $1.46 = $2.62.
Method 1: cost-plus
Price = cost per sale × 2 to 3 for physical goods. Simple and safe, but it ignores what buyers would happily pay.
Method 2: value-based
Ask what the result is worth to the buyer. A template that saves a business owner 5 hours is worth far more than its cost to you. Services and digital products should almost always be priced on value.
Method 3: market check
List 5 to 10 competitors and their prices. You do not have to be cheapest; most buyers pick the option that feels clearest and most trustworthy. If you price higher, show why: better materials, faster delivery, more support, a guarantee.
Use tiers and bundles
Offer a basic, standard and premium version, or a bundle of two products. Many buyers choose the middle option. On Sellabo, an upsell right after checkout (Upsells page) is an easy way to sell the second product.
When to raise prices
If almost everyone buys without asking questions, or you are booked out, your price is probably too low. Raise it for new buyers, keep promises to existing ones, and watch your conversion rate on the Analytics page.
This guide is general information to help you get started. It is not legal, tax or financial advice. Rules change and differ by location, so check the official sources linked here or a qualified professional for your situation.