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Understand my money8 min read

How to Price Without Guessing

A good price should make sense for the business and the customer. Start with your costs, understand the value, then check the market.

BUILD THE PRICE
Know the cost01
Know the value02
Check the market03
PRICE

“How much are other people charging?” is a useful question.

It is a bad place to stop.

Your competitor may have different costs, a different customer, a different offer and a different reason for choosing that price.

A better price starts with your business, then checks the customer and the market.

01 · COST

Know what it takes to sell.

Before choosing a price, know the costs that come with making and delivering the product or service.

For a physical product, that might include the item, packaging, production and delivery support.

For a service, think about the time, people, tools and outside costs required to deliver it properly.

If the price cannot cover the real cost of delivery, the business starts from a weak position.

02 · VALUE

Cost tells you your floor. Value changes the conversation.

Customers do not buy your cost. They buy what the product or service does for them.

Does it save time? Make them money? Reduce stress? Improve how they look? Help them avoid a problem?

Stripe’s current pricing guidance makes this distinction clearly: costs matter, but pricing also needs to reflect the value delivered and who the customer is.

03 · MARKET

Now look around.

Too low?Are you covering the real work?
In range?Does the offer clearly justify the price?
Higher?Can the customer see the extra value?

The market is a reference point, not an instruction to copy the cheapest or most expensive competitor.

TRY A STARTING POINT

Cost + what you need to leave for the business.

This is not a final market price. It is a simple starting point before you check value and the market.

Starting price₦20,000

Then ask: does this price make sense for the customer, the value and the market?

04 · ADJUST

Your first price is not a lifetime promise.

SetSellLearnAdjust

Watch what happens after the price goes live.

Are customers buying? Are you covering the work? Is the business keeping enough? Are people choosing a different package? Did your costs change?

Use real behaviour to improve the price instead of waiting until the business is already under pressure.

PRICING IN QUINBIS APP

Price with the numbers in view.

Use the Quinbis App Pricing Calculator to bring your costs, selling price and expected sales together, then see what the decision means for the business.