{"id":31913,"date":"2026-07-21T11:00:52","date_gmt":"2026-07-21T11:00:52","guid":{"rendered":"https:\/\/brandid.app\/blog\/?p=31913"},"modified":"2026-07-21T11:00:54","modified_gmt":"2026-07-21T11:00:54","slug":"how-to-price-a-product","status":"publish","type":"post","link":"https:\/\/brandid.app\/blog\/how-to-price-a-product\/","title":{"rendered":"How to Price a Product in 2026 (Free Calculator + Formula)"},"content":{"rendered":"\n<!-- ============================================================\n  How to Price a Product (2026) | brandID blog | ENHANCED\n  Kept: 5-step formula, 6 strategies, best practices, both infographics. Added: calculator, markup vs margin, break-even, product-type pricing, mistakes, FAQ, schema.\n  Paste into Elementor Custom HTML \/ HTML widget (calculator uses inline JS; schema is JSON-LD)\n  ============================================================ -->\n<!-- ARTICLE SCHEMA (JSON-LD)\n<script type=\"application\/ld+json\">\n{\"@context\":\"https:\/\/schema.org\",\"@type\":\"Article\",\"headline\":\"How to Price a Product in 2026 (Formula, Calculator & Strategies)\",\"author\":{\"@type\":\"Person\",\"name\":\"Saeed Parvar\",\"url\":\"https:\/\/brandid.app\/blog\/author\/saeed-p\/\"},\"publisher\":{\"@type\":\"Organization\",\"name\":\"brandID\",\"logo\":{\"@type\":\"ImageObject\",\"url\":\"https:\/\/brandid.app\/blog\/wp-content\/uploads\/2026\/04\/Layer_1-6-1.svg\"}},\"datePublished\":\"2026-03-11\",\"dateModified\":\"2026-07-20\",\"image\":\"https:\/\/brandid.app\/blog\/wp-content\/uploads\/2026\/03\/how-to-price-a-product-cover.jpg\",\"mainEntityOfPage\":\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/\"}\n<\/script> -->\n<!-- BREADCRUMB SCHEMA (JSON-LD)\n<script type=\"application\/ld+json\">\n{\"@context\":\"https:\/\/schema.org\",\"@type\":\"BreadcrumbList\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/brandid.app\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Creator Monetization Tips\",\"item\":\"https:\/\/brandid.app\/blog\/category\/creator-monetization-tips\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"How to Price a Product\"}]}\n<\/script> -->\n\n<div style=\"font-family:'Inter','Segoe UI',system-ui,-apple-system,Arial,sans-serif;color:#4A3A38;font-size:18px;line-height:1.7;max-width:860px;margin:0 auto;\">\n<p style=\"margin:0 0 14px;\">Pricing isn&#39;t just a number, it&#39;s the story of your product&#39;s value. Set it right and you unlock profit, healthy cash flow, and trust. Set it wrong and you either leave money on the table or chase bargain hunters forever.<\/p><p style=\"margin:0 0 14px;\">This guide shows you how to price a product with a simple formula, a free calculator, real examples, and proven strategies, whether you&#39;re <a href=\"https:\/\/brandid.app\/blog\/how-to-sell-digital-products\/\" target=\"_blank\" rel=\"noopener\" style=\"color:#EE6055;font-weight:600;text-decoration:none;\">selling digital products online<\/a> or physical items.<\/p><p style=\"margin:0 0 14px;\">Let&#39;s get started.<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#What_Is_Product_Pricing\" >What Is Product Pricing?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#Product_Pricing_Calculator\" >Product Pricing Calculator<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#How_to_Price_a_Product_in_5_Steps\" >How to Price a Product in 5 Steps<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#Step_1_Add_Up_Fixed_Costs\" >Step 1: Add Up Fixed Costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#Step_2_Add_Up_Variable_Costs\" >Step 2: Add Up Variable Costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#Step_3_Add_Up_International_Costs_and_Tariffs\" >Step 3: Add Up International Costs and Tariffs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#Step_4_Calculate_Cost_per_Unit\" >Step 4: Calculate Cost per Unit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#Step_5_Add_a_Profit_Margin\" >Step 5: Add a Profit Margin<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#Markup_vs_Margin_Whats_the_Difference\" >Markup vs Margin: What&#39;s the Difference?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#How_to_Calculate_Your_Break-Even_Point\" >How to Calculate Your Break-Even Point<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#6_Best_Product_Pricing_Strategies\" >6 Best Product Pricing Strategies<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#1_Cost-Plus_Pricing\" >1. Cost-Plus Pricing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#2_Competitive_Pricing\" >2. Competitive Pricing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#3_Value-Based_Pricing\" >3. Value-Based Pricing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#4_Premium_Pricing\" >4. Premium Pricing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#5_Penetration_Pricing\" >5. Penetration Pricing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#6_Price_Skimming\" >6. Price Skimming<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#How_to_Price_Different_Types_of_Products\" >How to Price Different Types of Products<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#4_Best_Practices_for_Product_Pricing\" >4 Best Practices for Product Pricing<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#1_Identify_Your_Target_Audience\" >1. Identify Your Target Audience<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#2_Research_Competitors_and_the_Average_Selling_Price\" >2. Research Competitors and the Average Selling Price<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#3_Define_Your_Unique_Value_Proposition\" >3. Define Your Unique Value Proposition<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#4_Determine_Your_Market_Positioning\" >4. Determine Your Market Positioning<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#5_Use_Discounts_and_Psychological_Pricing\" >5. Use Discounts and Psychological Pricing<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#Common_Pricing_Mistakes_to_Avoid\" >Common Pricing Mistakes to Avoid<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#Set_Your_Price_Then_Start_Selling\" >Set Your Price, Then Start Selling<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"#\" data-href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><\/li><\/ul><\/nav><\/div>\n<h2 style=\"position:absolute;width:1px;height:1px;padding:0;margin:-1px;overflow:hidden;clip:rect(0,0,0,0);white-space:nowrap;border:0;\"><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2><div style=\"background:#FFF3F1;border:1px solid #FAD9D3;border-left:5px solid #EE6055;border-radius:16px;padding:21px 24px;margin:26px 0 30px;\"><div style=\"margin:0 0 10px;font-size:18px;color:#C9453B;text-transform:uppercase;letter-spacing:.8px;font-weight:700;\">Key Takeaways<\/div><ul style=\"margin:0;padding-left:24px;list-style:disc outside;\"><li style=\"margin:8px 0;font-size:16px;\"><strong style=\"color:#2A1A18;\">Start with cost, finish with value:<\/strong> Add up your costs for a floor price, then adjust up based on what buyers will actually pay<\/li><li style=\"margin:8px 0;font-size:16px;\"><strong style=\"color:#2A1A18;\">Know your formula:<\/strong> Selling price = cost per unit &divide; (1 &minus; your target margin as a decimal)<\/li><li style=\"margin:8px 0;font-size:16px;\"><strong style=\"color:#2A1A18;\">Margin and markup are not the same:<\/strong> Margin is profit as a share of price; markup is profit as a share of cost, so never mix them up<\/li><li style=\"margin:8px 0;font-size:16px;\"><strong style=\"color:#2A1A18;\">Pick a strategy on purpose:<\/strong> Cost-plus, competitive, value-based, premium, penetration, or skimming, each fits a different goal<\/li><li style=\"margin:8px 0;font-size:16px;\"><strong style=\"color:#2A1A18;\">Test and revisit:<\/strong> Your first price is a starting point, so review it monthly and after big cost or market changes<\/li><\/ul><\/div><h2 style=\"color:#2A1A18;font-size:27px;line-height:1.25;font-weight:700;margin:46px 0 12px;letter-spacing:-.3px;\"><span class=\"ez-toc-section\" id=\"What_Is_Product_Pricing\"><\/span>What Is Product Pricing?<span class=\"ez-toc-section-end\"><\/span><\/h2><div style=\"background:#FFF8F7;border:1px solid #FAD9D3;border-left:5px solid #EE6055;border-radius:12px;padding:13px 18px;margin:0 0 16px;font-size:16px;\"><strong style=\"color:#2A1A18;\">Short answer:<\/strong> Product pricing is the process of setting the amount you charge for a product, based on your costs, the market, and the value buyers place on it. The easiest starting point is cost plus a markup.<\/div><div style=\"background:#2A1A18;color:#fff;border-radius:12px;padding:16px 20px;margin:16px 0;font-size:17px;font-weight:700;text-align:center;letter-spacing:.2px;\">Cost + Markup = Selling Price<\/div><p style=\"margin:0 0 14px;\">Your total selling price includes the cost of making or buying the item, shipping, fees, and your desired profit. From there, you check what rivals charge and what customers are willing to pay, then adjust. Good pricing improves cash flow, protects your margins, and shapes how buyers perceive your brand.<\/p><p style=\"margin:0 0 14px;\">At a high level, the process is simple: add your cost of goods and per-sale fees, add a profit margin, compare against the market and the value your buyers expect, adjust for taxes and marketplace fees, apply psychological price points like $19.99, then test and tweak over time.<\/p><h2 style=\"color:#2A1A18;font-size:27px;line-height:1.25;font-weight:700;margin:46px 0 12px;letter-spacing:-.3px;\"><span class=\"ez-toc-section\" id=\"Product_Pricing_Calculator\"><\/span>Product Pricing Calculator<span class=\"ez-toc-section-end\"><\/span><\/h2><p style=\"margin:0 0 14px;\">Before the full breakdown, try the numbers yourself. Enter your cost and target margin to see the selling price, profit, and markup update instantly.<\/p><div style=\"background:#FFF3F1;border:1px solid #FAD9D3;border-left:5px solid #EE6055;border-radius:16px;padding:21px 24px;margin:26px 0 30px;\"><div style=\"margin:0 0 6px;font-size:19px;color:#C9453B;letter-spacing:.2px;font-weight:700;\">Product Pricing Calculator<\/div><p style=\"margin:0 0 16px;font-size:16px;\">Enter your cost per unit and target profit margin to get your selling price, profit, and markup instantly.<\/p><div style=\"display:flex;flex-wrap:wrap;gap:14px;margin-bottom:16px;\"><div style=\"flex:1;min-width:180px;\"><div style=\"font-size:13px;font-weight:700;color:#7A6A68;text-transform:uppercase;letter-spacing:.5px;;margin-bottom:5px;\">Cost per unit ($)<\/div><input id=\"bidCost\" type=\"number\" min=\"0\" step=\"0.01\" value=\"20\" oninput=\"var c=parseFloat(document.getElementById('bidCost').value)||0;var m=parseFloat(document.getElementById('bidMargin').value)||0;var s=m>=100?0:c\/(1-m\/100);document.getElementById(&#8216;bidPrice&#8217;).textContent=&#8217;$&#8217;+s.toFixed(2);document.getElementById(&#8216;bidProfit&#8217;).textContent=&#8217;$&#8217;+(s-c).toFixed(2);document.getElementById(&#8216;bidMarkup&#8217;).textContent=(c>0?((s-c)\/c*100):0).toFixed(0)+&#8217;%&#8217;;&#8221; style=&#8221;width:100%;box-sizing:border-box;padding:11px 13px;font-size:16px;border:1.5px solid #FAD9D3;border-radius:10px;font-family:inherit;color:#2A1A18;background:#fff;&#8221; \/><\/div><div style=\"flex:1;min-width:180px;\"><div style=\"font-size:13px;font-weight:700;color:#7A6A68;text-transform:uppercase;letter-spacing:.5px;;margin-bottom:5px;\">Profit margin (%)<\/div><input id=\"bidMargin\" type=\"number\" min=\"0\" max=\"99\" step=\"1\" value=\"50\" oninput=\"var c=parseFloat(document.getElementById('bidCost').value)||0;var m=parseFloat(document.getElementById('bidMargin').value)||0;var s=m>=100?0:c\/(1-m\/100);document.getElementById(&#8216;bidPrice&#8217;).textContent=&#8217;$&#8217;+s.toFixed(2);document.getElementById(&#8216;bidProfit&#8217;).textContent=&#8217;$&#8217;+(s-c).toFixed(2);document.getElementById(&#8216;bidMarkup&#8217;).textContent=(c>0?((s-c)\/c*100):0).toFixed(0)+&#8217;%&#8217;;&#8221; style=&#8221;width:100%;box-sizing:border-box;padding:11px 13px;font-size:16px;border:1.5px solid #FAD9D3;border-radius:10px;font-family:inherit;color:#2A1A18;background:#fff;&#8221; \/><\/div><\/div><div style=\"display:flex;flex-wrap:wrap;gap:12px;\"><div style=\"flex:1;min-width:150px;background:#fff;border:1px solid #FAD9D3;border-radius:12px;padding:14px 16px;text-align:center;\"><span style=\"font-size:13px;font-weight:700;color:#7A6A68;text-transform:uppercase;letter-spacing:.5px;\">Selling price<\/span><span id=\"bidPrice\" style=\"font-size:26px;font-weight:700;color:#EE6055;display:block;margin-top:4px;\">$40.00<\/span><\/div><div style=\"flex:1;min-width:150px;background:#fff;border:1px solid #FAD9D3;border-radius:12px;padding:14px 16px;text-align:center;\"><span style=\"font-size:13px;font-weight:700;color:#7A6A68;text-transform:uppercase;letter-spacing:.5px;\">Profit \/ unit<\/span><span id=\"bidProfit\" style=\"font-size:26px;font-weight:700;color:#EE6055;display:block;margin-top:4px;\">$20.00<\/span><\/div><div style=\"flex:1;min-width:150px;background:#fff;border:1px solid #FAD9D3;border-radius:12px;padding:14px 16px;text-align:center;\"><span style=\"font-size:13px;font-weight:700;color:#7A6A68;text-transform:uppercase;letter-spacing:.5px;\">Markup<\/span><span id=\"bidMarkup\" style=\"font-size:26px;font-weight:700;color:#EE6055;display:block;margin-top:4px;\">100%<\/span><\/div><\/div><p style=\"margin:14px 0 0;font-size:14px;color:#7A6A68;\">Formula: selling price = cost &divide; (1 &minus; margin). Adjust the numbers to see how margin changes your price.<\/p><\/div><h2 style=\"color:#2A1A18;font-size:27px;line-height:1.25;font-weight:700;margin:46px 0 12px;letter-spacing:-.3px;\"><span class=\"ez-toc-section\" id=\"How_to_Price_a_Product_in_5_Steps\"><\/span>How to Price a Product in 5 Steps<span class=\"ez-toc-section-end\"><\/span><\/h2><div style=\"background:#FFF8F7;border:1px solid #FAD9D3;border-left:5px solid #EE6055;border-radius:12px;padding:13px 18px;margin:0 0 16px;font-size:16px;\"><strong style=\"color:#2A1A18;\">Short answer:<\/strong> Total your fixed and variable costs (plus any import fees), calculate the cost per unit, then add a target profit margin. Finally, sense-check the number against competitors and customer value.<\/div><p style=\"margin:0 0 14px;\">Use this five-step playbook to set a price you can defend and scale.<\/p><img decoding=\"async\" src=\"https:\/\/brandid.app\/blog\/wp-content\/uploads\/2026\/03\/how-to-price-products-infographic-1024x621.jpg\" alt=\"5 steps to price a product infographic\" style=\"width:100%;height:auto;border:1px solid #FAD9D3;border-radius:14px;display:block;margin:16px auto 4px;max-width:660px;\" \/><div style=\"text-align:center;margin:2px 0 20px;font-size:14px;color:#7A6A68;font-weight:600;\">The 5 steps to price a product<\/div><h3 style=\"color:#2A1A18;font-size:21px;font-weight:700;margin:30px 0 6px;\"><span class=\"ez-toc-section\" id=\"Step_1_Add_Up_Fixed_Costs\"><\/span>Step 1: Add Up Fixed Costs<span class=\"ez-toc-section-end\"><\/span><\/h3><p style=\"margin:0 0 14px;\">Fixed costs stay the same no matter how many units you make or sell. Pick a time period (a month or quarter), list every expense that does not change with sales, and total them. Dividing that total by the units you expect to sell shows how much each item must cover before profit.<\/p><p style=\"margin:0 0 14px;\">Common fixed costs include rent, staff salaries, business insurance, equipment leases, software plans, licenses and permits, base utilities, and ongoing marketing retainers.<\/p><h3 style=\"color:#2A1A18;font-size:21px;font-weight:700;margin:30px 0 6px;\"><span class=\"ez-toc-section\" id=\"Step_2_Add_Up_Variable_Costs\"><\/span>Step 2: Add Up Variable Costs<span class=\"ez-toc-section-end\"><\/span><\/h3><p style=\"margin:0 0 14px;\">Variable costs rise and fall with how much you produce or sell. Using the same time period, list every per-unit or per-order expense and total it, then divide by units to get your variable cost per unit.<\/p><p style=\"margin:0 0 14px;\">Common variable costs include raw materials and components, packaging, shipping supplies, payment processing fees, sales commissions, marketplace per-sale fees, and per-order fulfillment.<\/p><h3 style=\"color:#2A1A18;font-size:21px;font-weight:700;margin:30px 0 6px;\"><span class=\"ez-toc-section\" id=\"Step_3_Add_Up_International_Costs_and_Tariffs\"><\/span>Step 3: Add Up International Costs and Tariffs<span class=\"ez-toc-section-end\"><\/span><\/h3><p style=\"margin:0 0 14px;\">If you buy or sell across borders, factor in tariffs, freight, customs, and broker fees. Find the correct HS code, check the duty rate, then add freight, insurance, and per-order fees to your variable cost.<\/p><div style=\"background:#F0FAF4;border:1px solid #CDEBD8;border-left:5px solid #16A34A;border-radius:14px;padding:15px 20px;margin:20px 0;font-size:16px;\"><strong style=\"color:#2A1A18;\">Example: <\/strong>$8 materials + $3 freight + 6% duty ($0.66) + $0.40 customs = $12.06 before profit.<\/div><h3 style=\"color:#2A1A18;font-size:21px;font-weight:700;margin:30px 0 6px;\"><span class=\"ez-toc-section\" id=\"Step_4_Calculate_Cost_per_Unit\"><\/span>Step 4: Calculate Cost per Unit<span class=\"ez-toc-section-end\"><\/span><\/h3><p style=\"margin:0 0 14px;\">Your cost per unit is the average cost to make one item, and it is your lowest safe price. Add your total fixed and variable costs, then divide by the number of units made in that period.<\/p><div style=\"background:#2A1A18;color:#fff;border-radius:12px;padding:16px 20px;margin:16px 0;font-size:17px;font-weight:700;text-align:center;letter-spacing:.2px;\">Cost per Unit = (Total Variable Costs + Total Fixed Costs) &divide; Units Made<\/div><p style=\"margin:0 0 14px;\">Your selling price must sit above this number to earn a profit. After it, add any fees, shipping, and target profit, then check competitors and perceived value.<\/p><h3 style=\"color:#2A1A18;font-size:21px;font-weight:700;margin:30px 0 6px;\"><span class=\"ez-toc-section\" id=\"Step_5_Add_a_Profit_Margin\"><\/span>Step 5: Add a Profit Margin<span class=\"ez-toc-section-end\"><\/span><\/h3><p style=\"margin:0 0 14px;\">Profit margin is the percentage of your selling price you keep as profit. It is a percentage of price, not cost, which is where many sellers slip up.<\/p><div style=\"background:#2A1A18;color:#fff;border-radius:12px;padding:16px 20px;margin:16px 0;font-size:17px;font-weight:700;text-align:center;letter-spacing:.2px;\">Target Price = Cost per Unit &divide; (1 &minus; Desired Margin as a Decimal)<\/div><p style=\"margin:0 0 14px;\">For example, if your cost per unit is $14.28 and you want a 20% margin, turn 20% into 0.20, subtract from 1 to get 0.80, then divide: $14.28 &divide; 0.80 = $17.85. That $17.85 is the price needed to hit your margin, before taxes, shipping, or marketplace fees.<\/p><h2 style=\"color:#2A1A18;font-size:27px;line-height:1.25;font-weight:700;margin:46px 0 12px;letter-spacing:-.3px;\"><span class=\"ez-toc-section\" id=\"Markup_vs_Margin_Whats_the_Difference\"><\/span>Markup vs Margin: What&#39;s the Difference?<span class=\"ez-toc-section-end\"><\/span><\/h2><div style=\"background:#FFF8F7;border:1px solid #FAD9D3;border-left:5px solid #EE6055;border-radius:12px;padding:13px 18px;margin:0 0 16px;font-size:16px;\"><strong style=\"color:#2A1A18;\">Short answer:<\/strong> Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. They describe the same profit but produce very different numbers, so always know which one you are using.<\/div><p style=\"margin:0 0 14px;\">This is one of the most common (and expensive) pricing mistakes. A 50% markup is not a 50% margin.<\/p><div style=\"overflow-x:auto;margin:20px 0;border:1px solid #FAD9D3;border-radius:16px;\"><table style=\"width:100%;border-collapse:collapse;font-size:14px;min-width:640px;\"><thead><tr><th style=\"background:#EE6055;color:#fff;font-weight:600;padding:11px 13px;text-align:left;border-bottom:1px solid #FAD9D3;\">Term<\/th><th style=\"background:#EE6055;color:#fff;font-weight:600;padding:11px 13px;text-align:left;border-bottom:1px solid #FAD9D3;\">Formula<\/th><th style=\"background:#EE6055;color:#fff;font-weight:600;padding:11px 13px;text-align:left;border-bottom:1px solid #FAD9D3;\">Example (cost $10, price $15)<\/th><\/tr><\/thead><tbody><tr style=\"\"><td style=\"padding:10px 13px;text-align:left;border-bottom:1px solid #FAD9D3;vertical-align:top;font-weight:700;color:#2A1A18;\">Margin<\/td><td style=\"padding:10px 13px;text-align:left;border-bottom:1px solid #FAD9D3;vertical-align:top;\">(Price &minus; Cost) &divide; Price<\/td><td style=\"padding:10px 13px;text-align:left;border-bottom:1px solid #FAD9D3;vertical-align:top;\">$5 &divide; $15 = 33%<\/td><\/tr><tr style=\"background:#FFF3F1;\"><td style=\"padding:10px 13px;text-align:left;border-bottom:1px solid #FAD9D3;vertical-align:top;font-weight:700;color:#2A1A18;\">Markup<\/td><td style=\"padding:10px 13px;text-align:left;border-bottom:1px solid #FAD9D3;vertical-align:top;\">(Price &minus; Cost) &divide; Cost<\/td><td style=\"padding:10px 13px;text-align:left;border-bottom:1px solid #FAD9D3;vertical-align:top;\">$5 &divide; $10 = 50%<\/td><\/tr><\/tbody><\/table><\/div><p style=\"margin:0 0 14px;\">Same $5 profit, two very different percentages. When you read a competitor&#39;s numbers or plug into a formula, check whether it is talking about margin or markup before you copy it.<\/p><h2 style=\"color:#2A1A18;font-size:27px;line-height:1.25;font-weight:700;margin:46px 0 12px;letter-spacing:-.3px;\"><span class=\"ez-toc-section\" id=\"How_to_Calculate_Your_Break-Even_Point\"><\/span>How to Calculate Your Break-Even Point<span class=\"ez-toc-section-end\"><\/span><\/h2><div style=\"background:#FFF8F7;border:1px solid #FAD9D3;border-left:5px solid #EE6055;border-radius:12px;padding:13px 18px;margin:0 0 16px;font-size:16px;\"><strong style=\"color:#2A1A18;\">Short answer:<\/strong> Your break-even point is how many units you must sell to cover your costs. Divide total fixed costs by your profit per unit (selling price minus variable cost).<\/div><div style=\"background:#2A1A18;color:#fff;border-radius:12px;padding:16px 20px;margin:16px 0;font-size:17px;font-weight:700;text-align:center;letter-spacing:.2px;\">Break-Even Units = Total Fixed Costs &divide; (Selling Price &minus; Variable Cost per Unit)<\/div><p style=\"margin:0 0 14px;\">For example, with $2,000 in monthly fixed costs, a $25 price, and $10 in variable cost per unit, you need $2,000 &divide; $15 = 134 units to break even. Every sale after that is profit.<\/p><p style=\"margin:0 0 14px;\">This number is a reality check: if hitting break-even means selling more units than your audience can realistically buy, your price is too low or your costs are too high.<\/p><h2 style=\"color:#2A1A18;font-size:27px;line-height:1.25;font-weight:700;margin:46px 0 12px;letter-spacing:-.3px;\"><span class=\"ez-toc-section\" id=\"6_Best_Product_Pricing_Strategies\"><\/span>6 Best Product Pricing Strategies<span class=\"ez-toc-section-end\"><\/span><\/h2><p style=\"margin:0 0 14px;\">Great prices are chosen from a playbook, not guessed. Here are six proven strategies, when to use each, and quick examples.<\/p><img decoding=\"async\" src=\"https:\/\/brandid.app\/blog\/wp-content\/uploads\/2026\/03\/pricing-strategies-infographic-1024x621.jpg\" alt=\"Six best product pricing strategies infographic\" style=\"width:100%;height:auto;border:1px solid #FAD9D3;border-radius:14px;display:block;margin:16px auto 4px;max-width:660px;\" \/><div style=\"text-align:center;margin:2px 0 20px;font-size:14px;color:#7A6A68;font-weight:600;\">The 6 best product pricing strategies<\/div><h3 style=\"color:#2A1A18;font-size:21px;font-weight:700;margin:30px 0 6px;\"><span class=\"ez-toc-section\" id=\"1_Cost-Plus_Pricing\"><\/span>1. Cost-Plus Pricing<span class=\"ez-toc-section-end\"><\/span><\/h3><p style=\"margin:0 0 14px;\">Add a profit margin on top of what it costs to make one item. Simple and reliable, it works well for retail and stable costs. If a cutting board costs $20 and you want a 50% markup, the price is $20 &times; 1.50 = $30. Still check competitors and perceived value before you lock it in.<\/p><h3 style=\"color:#2A1A18;font-size:21px;font-weight:700;margin:30px 0 6px;\"><span class=\"ez-toc-section\" id=\"2_Competitive_Pricing\"><\/span>2. Competitive Pricing<span class=\"ez-toc-section-end\"><\/span><\/h3><p style=\"margin:0 0 14px;\">Set your price near what similar products cost, then go a little lower, higher, or match. A brand might price its 16-oz shampoo at $8.49 because rivals sell for $7.99 to $8.99, with research supporting a small premium. It is easy and matches buyer expectations, but it can spark price wars, so back your price with a clear value story instead of racing to the bottom.<\/p><h3 style=\"color:#2A1A18;font-size:21px;font-weight:700;margin:30px 0 6px;\"><span class=\"ez-toc-section\" id=\"3_Value-Based_Pricing\"><\/span>3. Value-Based Pricing<span class=\"ez-toc-section-end\"><\/span><\/h3><p style=\"margin:0 0 14px;\">Price by what customers think your product is worth, not what it costs to make. As Warren Buffett put it, &quot;Price is what you pay; value is what you get.&quot; A bakery charges more for handmade sourdough, and a tool that saves 10 hours a month pays for itself. Value-based pricing rewards what makes you different, but it takes research and proof, so start at your cost floor, map the job your product does, and test two or three tiers.<\/p><h3 style=\"color:#2A1A18;font-size:21px;font-weight:700;margin:30px 0 6px;\"><span class=\"ez-toc-section\" id=\"4_Premium_Pricing\"><\/span>4. Premium Pricing<span class=\"ez-toc-section-end\"><\/span><\/h3><p style=\"margin:0 0 14px;\">Deliberately price high to signal exclusivity and quality, common for luxury and prestige brands. A microbrand watch at $1,200 while rivals sit near $350 is backed by a Swiss movement, lifetime service, and limited production. You keep fat margins and a strong brand, but sell to fewer people and must keep proving quality, so use it only when the product is clearly superior.<\/p><h3 style=\"color:#2A1A18;font-size:21px;font-weight:700;margin:30px 0 6px;\"><span class=\"ez-toc-section\" id=\"5_Penetration_Pricing\"><\/span>5. Penetration Pricing<span class=\"ez-toc-section-end\"><\/span><\/h3><p style=\"margin:0 0 14px;\">Start low to win customers fast, then raise prices over time. It suits crowded, price-sensitive markets like streaming and SaaS. A new streaming app might charge &euro;1 for three months, then move to &euro;6. It creates buzz and pulls customers from rivals, but margins are thin at launch and some buyers churn when prices rise, so only use it if you can afford the low price for a while.<\/p><h3 style=\"color:#2A1A18;font-size:21px;font-weight:700;margin:30px 0 6px;\"><span class=\"ez-toc-section\" id=\"6_Price_Skimming\"><\/span>6. Price Skimming<span class=\"ez-toc-section-end\"><\/span><\/h3><p style=\"margin:0 0 14px;\">The opposite of penetration: launch high to capture early buyers who value it most, then lower the price in planned steps as competition grows. It works best for new, differentiated products with little competition, like new tech or specialty hardware. Plan your price drops, give early buyers perks, and watch for copycats.<\/p><div style=\"background:#FFF8F7;border:1px solid #FAD9D3;border-left:5px solid #EE6055;border-radius:14px;padding:15px 20px;margin:20px 0;font-size:16px;\"><strong style=\"color:#2A1A18;\">Not sure which to pick?<\/strong> Most small sellers start with cost-plus for a floor, then shift toward value-based pricing once they understand what buyers will pay.<\/div><h2 style=\"color:#2A1A18;font-size:27px;line-height:1.25;font-weight:700;margin:46px 0 12px;letter-spacing:-.3px;\"><span class=\"ez-toc-section\" id=\"How_to_Price_Different_Types_of_Products\"><\/span>How to Price Different Types of Products<span class=\"ez-toc-section-end\"><\/span><\/h2><div style=\"background:#FFF8F7;border:1px solid #FAD9D3;border-left:5px solid #EE6055;border-radius:12px;padding:13px 18px;margin:0 0 16px;font-size:16px;\"><strong style=\"color:#2A1A18;\">Short answer:<\/strong> The best approach depends on what you sell. Physical goods lean on cost-plus and competitive pricing, digital products and services lean on value-based pricing, and subscriptions use tiered or per-user models.<\/div><div style=\"overflow-x:auto;margin:20px 0;border:1px solid #FAD9D3;border-radius:16px;\"><table style=\"width:100%;border-collapse:collapse;font-size:14px;min-width:640px;\"><thead><tr><th style=\"background:#EE6055;color:#fff;font-weight:600;padding:11px 13px;text-align:left;border-bottom:1px solid #FAD9D3;\">Product type<\/th><th style=\"background:#EE6055;color:#fff;font-weight:600;padding:11px 13px;text-align:left;border-bottom:1px solid #FAD9D3;\">Best approach<\/th><th style=\"background:#EE6055;color:#fff;font-weight:600;padding:11px 13px;text-align:left;border-bottom:1px solid #FAD9D3;\">What to watch<\/th><\/tr><\/thead><tbody><tr style=\"\"><td style=\"padding:10px 13px;text-align:left;border-bottom:1px solid #FAD9D3;vertical-align:top;font-weight:700;color:#2A1A18;\">Physical \/ retail<\/td><td style=\"padding:10px 13px;text-align:left;border-bottom:1px solid #FAD9D3;vertical-align:top;\">Cost-plus plus competitive<\/td><td style=\"padding:10px 13px;text-align:left;border-bottom:1px solid #FAD9D3;vertical-align:top;\">Shipping, returns, and marketplace fees eat margin<\/td><\/tr><tr style=\"background:#FFF3F1;\"><td style=\"padding:10px 13px;text-align:left;border-bottom:1px solid #FAD9D3;vertical-align:top;font-weight:700;color:#2A1A18;\">Wholesale<\/td><td style=\"padding:10px 13px;text-align:left;border-bottom:1px solid #FAD9D3;vertical-align:top;\">Cost-plus at a lower margin<\/td><td style=\"padding:10px 13px;text-align:left;border-bottom:1px solid #FAD9D3;vertical-align:top;\">Price so a retailer can still mark it up and profit<\/td><\/tr><tr style=\"\"><td style=\"padding:10px 13px;text-align:left;border-bottom:1px solid #FAD9D3;vertical-align:top;font-weight:700;color:#2A1A18;\">Digital products<\/td><td style=\"padding:10px 13px;text-align:left;border-bottom:1px solid #FAD9D3;vertical-align:top;\">Value-based<\/td><td style=\"padding:10px 13px;text-align:left;border-bottom:1px solid #FAD9D3;vertical-align:top;\">Near-zero unit cost, so price on value and the market<\/td><\/tr><tr style=\"background:#FFF3F1;\"><td style=\"padding:10px 13px;text-align:left;border-bottom:1px solid #FAD9D3;vertical-align:top;font-weight:700;color:#2A1A18;\">SaaS \/ subscriptions<\/td><td style=\"padding:10px 13px;text-align:left;border-bottom:1px solid #FAD9D3;vertical-align:top;\">Tiered or per-user<\/td><td style=\"padding:10px 13px;text-align:left;border-bottom:1px solid #FAD9D3;vertical-align:top;\">Recurring revenue, so price on value and upgrades<\/td><\/tr><tr style=\"\"><td style=\"padding:10px 13px;text-align:left;border-bottom:1px solid #FAD9D3;vertical-align:top;font-weight:700;color:#2A1A18;\">Services<\/td><td style=\"padding:10px 13px;text-align:left;border-bottom:1px solid #FAD9D3;vertical-align:top;\">Value or project-based<\/td><td style=\"padding:10px 13px;text-align:left;border-bottom:1px solid #FAD9D3;vertical-align:top;\">Price on the outcome and expertise, not just hours<\/td><\/tr><\/tbody><\/table><\/div><p style=\"margin:0 0 14px;\">Because <a href=\"https:\/\/brandid.app\/blog\/best-digital-products-to-sell\/\" target=\"_blank\" rel=\"noopener\" style=\"color:#EE6055;font-weight:600;text-decoration:none;\">the best digital products to sell<\/a> cost almost nothing to reproduce, they are the clearest case for value-based pricing: a <a href=\"https:\/\/brandid.app\/blog\/sell-canva-templates\/\" target=\"_blank\" rel=\"noopener\" style=\"color:#EE6055;font-weight:600;text-decoration:none;\">Canva template that saves buyers hours<\/a> is worth far more than the minutes it took to make.<\/p><h2 style=\"color:#2A1A18;font-size:27px;line-height:1.25;font-weight:700;margin:46px 0 12px;letter-spacing:-.3px;\"><span class=\"ez-toc-section\" id=\"4_Best_Practices_for_Product_Pricing\"><\/span>4 Best Practices for Product Pricing<span class=\"ez-toc-section-end\"><\/span><\/h2><p style=\"margin:0 0 14px;\">These habits keep your prices confident and profitable, not guessed.<\/p><h3 style=\"color:#2A1A18;font-size:21px;font-weight:700;margin:30px 0 6px;\"><span class=\"ez-toc-section\" id=\"1_Identify_Your_Target_Audience\"><\/span>1. Identify Your Target Audience<span class=\"ez-toc-section-end\"><\/span><\/h3><p style=\"margin:0 0 14px;\">Who you sell to changes what you can charge. Pricing a PDF for college students is different from pricing it for faculty. Survey buyers on willingness to pay, and match the value (length, checklists, updates) to what the group needs.<\/p><h3 style=\"color:#2A1A18;font-size:21px;font-weight:700;margin:30px 0 6px;\"><span class=\"ez-toc-section\" id=\"2_Research_Competitors_and_the_Average_Selling_Price\"><\/span>2. Research Competitors and the Average Selling Price<span class=\"ez-toc-section-end\"><\/span><\/h3><p style=\"margin:0 0 14px;\">Competitive analysis stops you from guessing. Pick 5 to 10 close rivals and note their regular price, sale price, bundles, and signs of value like ratings and warranties. Work out the average selling price in your market, then set a target band: your floor is cost plus fees, and the market band is the usual range. Test inside that band and review monthly or after big sales.<\/p><h3 style=\"color:#2A1A18;font-size:21px;font-weight:700;margin:30px 0 6px;\"><span class=\"ez-toc-section\" id=\"3_Define_Your_Unique_Value_Proposition\"><\/span>3. Define Your Unique Value Proposition<span class=\"ez-toc-section-end\"><\/span><\/h3><p style=\"margin:0 0 14px;\">Your unique value proposition is the main reason people choose you, and it justifies your price because buyers pay for results, not features. For <a href=\"https:\/\/brandid.app\/blog\/how-to-sell-clipart\/\" target=\"_blank\" rel=\"noopener\" style=\"color:#EE6055;font-weight:600;text-decoration:none;\">creators selling clipart and illustrations<\/a>, a strong UVP might be &quot;theme bundles, instant download, commercial license, clear previews,&quot; which supports a price above cheap, generic options.<\/p><h3 style=\"color:#2A1A18;font-size:21px;font-weight:700;margin:30px 0 6px;\"><span class=\"ez-toc-section\" id=\"4_Determine_Your_Market_Positioning\"><\/span>4. Determine Your Market Positioning<span class=\"ez-toc-section-end\"><\/span><\/h3><p style=\"margin:0 0 14px;\">Positioning is how you want buyers to see you against rivals: budget, mid-tier, or premium. Lead with one clear angle, quality, a competitor comparison, a specific benefit, convenience, or novelty, and back it with proof like reviews or guarantees. A basic PDF bundle at $5 and a designer bundle at $25 with extras are two different positions, each priced to match.<\/p><h3 style=\"color:#2A1A18;font-size:21px;font-weight:700;margin:30px 0 6px;\"><span class=\"ez-toc-section\" id=\"5_Use_Discounts_and_Psychological_Pricing\"><\/span>5. Use Discounts and Psychological Pricing<span class=\"ez-toc-section-end\"><\/span><\/h3><p style=\"margin:0 0 14px;\">Psychological pricing nudges buyers without cutting real profit. Use charm prices ($9.99 instead of $10), anchor a higher list price ($79) next to your offer ($49), sell bundles (three for $19 vs $9 each), and add a decoy tier (Basic $9, Pro $19, Premium $39) so most people pick Pro. Always check your margin first, limit discounts, give a reason and an end date, and do not train shoppers to wait for the next sale.<\/p><h2 style=\"color:#2A1A18;font-size:27px;line-height:1.25;font-weight:700;margin:46px 0 12px;letter-spacing:-.3px;\"><span class=\"ez-toc-section\" id=\"Common_Pricing_Mistakes_to_Avoid\"><\/span>Common Pricing Mistakes to Avoid<span class=\"ez-toc-section-end\"><\/span><\/h2><ul style=\"margin:6px 0 16px;padding-left:24px;list-style:disc outside;font-size:16px;\"><li style=\"margin:8px 0;\"><strong style=\"color:#2A1A18;\">Pricing on cost alone.<\/strong> Cost sets your floor, but value sets your ceiling, so ignoring what buyers will pay leaves money behind.<\/li><li style=\"margin:8px 0;\"><strong style=\"color:#2A1A18;\">Confusing markup and margin.<\/strong> A 50% markup is only a 33% margin, and mixing them quietly shrinks your profit.<\/li><li style=\"margin:8px 0;\"><strong style=\"color:#2A1A18;\">Racing to the bottom.<\/strong> Undercutting rivals starts price wars and trains buyers to expect cheap, so compete on value instead.<\/li><li style=\"margin:8px 0;\"><strong style=\"color:#2A1A18;\">Forgetting fees and shipping.<\/strong> Payment, marketplace, and shipping fees all come out of your margin, so build them into your cost base.<\/li><li style=\"margin:8px 0;\"><strong style=\"color:#2A1A18;\">Never testing or reviewing.<\/strong> Markets and costs shift, so a price you set once and forget slowly stops working.<\/li><li style=\"margin:8px 0;\"><strong style=\"color:#2A1A18;\">Over-discounting.<\/strong> Constant sales erode your premium image and teach shoppers to wait for the next deal.<\/li><li style=\"margin:8px 0;\"><strong style=\"color:#2A1A18;\">Underpricing out of fear.<\/strong> Charging too little signals low quality and makes a sustainable business much harder to build.<\/li><\/ul><h2 style=\"color:#2A1A18;font-size:27px;line-height:1.25;font-weight:700;margin:46px 0 12px;letter-spacing:-.3px;\"><span class=\"ez-toc-section\" id=\"Set_Your_Price_Then_Start_Selling\"><\/span>Set Your Price, Then Start Selling<span class=\"ez-toc-section-end\"><\/span><\/h2><p style=\"margin:0 0 14px;\">Once your number is locked in, the last step is turning it into sales. That means a storefront that takes payments, delivers the product, and lets you test prices without friction.<\/p><div style=\"background:#FFF3F1;border:1px solid #FAD9D3;border-left:5px solid #EE6055;border-radius:16px;padding:21px 24px;margin:26px 0 30px;\"><div style=\"margin:0 0 6px;font-size:19px;color:#C9453B;letter-spacing:.2px;font-weight:700;\">brandID<\/div><p style=\"margin:0 0 14px;\">brandID is a free-to-start <a href=\"https:\/\/brandid.app\/monetization-tool\/\" target=\"_blank\" rel=\"noopener\" style=\"color:#EE6055;font-weight:600;text-decoration:none;\">creator store and link in bio<\/a> where you can <a href=\"https:\/\/brandid.app\/sell-digital-downloads\/\" target=\"_blank\" rel=\"noopener\" style=\"color:#EE6055;font-weight:600;text-decoration:none;\">sell digital downloads<\/a> and set your price in minutes, with no coding or design skills.<\/p><ul style=\"margin:6px 0 16px;padding-left:24px;list-style:disc outside;font-size:16px;\"><li style=\"margin:8px 0;\">Accept payments in multiple currencies with secure checkout and instant file delivery<\/li><li style=\"margin:8px 0;\">Build bundles, coupons, and subscriptions, and run simple A\/B price tests<\/li><li style=\"margin:8px 0;\">Track every order and see which price points convert with built-in analytics<\/li><\/ul><a href=\"https:\/\/app.brandid.app\/signup\" target=\"_blank\" rel=\"noopener\" style=\"display:inline-block;background:#EE6055;color:#fff;font-weight:700;font-size:16px;padding:12px 26px;border-radius:999px;text-decoration:none;margin:10px 0 4px;\">Start Selling Free on brandID<\/a><\/div><h2 style=\"color:#2A1A18;font-size:27px;line-height:1.25;font-weight:700;margin:46px 0 12px;letter-spacing:-.3px;\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2><p style=\"margin:0 0 14px;\">Now you know how to price a product with a repeatable system, not a guess. Total your fixed and variable costs, calculate cost per unit, add a target margin, and you have a floor. Then compare six strategies, sense-check against competitors and value, and adjust.<\/p><p style=\"margin:0 0 14px;\">Get it right and pricing becomes a growth lever instead of a source of stress. Lock in your number, put it in front of buyers, and keep testing, because the best price is the one your market keeps confirming.<\/p><h2 style=\"color:#2A1A18;font-size:27px;line-height:1.25;font-weight:700;margin:46px 0 12px;letter-spacing:-.3px;\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2><details itemscope itemtype=\"https:\/\/schema.org\/Question\" style=\"border:1px solid #FAD9D3;border-radius:10px;margin:11px 0;background:#fff;\"><summary itemprop=\"name\" style=\"cursor:pointer;padding:16px 19px;font-weight:700;color:#2A1A18;font-size:17px;\">What Profit Margin Should I Aim For When Pricing a Product?<\/summary><div itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 19px 18px;\"><p itemprop=\"text\" style=\"margin:0;font-size:15px;\">It depends on your industry. A healthy margin is often around 10%, with 20% or higher considered strong. Retail can run as low as 3% to 5%, while software and luxury goods can exceed 20% to 40%. Start with your industry norm, then adjust for your costs and positioning.<\/p><\/div><\/details><details itemscope itemtype=\"https:\/\/schema.org\/Question\" style=\"border:1px solid #FAD9D3;border-radius:10px;margin:11px 0;background:#fff;\"><summary itemprop=\"name\" style=\"cursor:pointer;padding:16px 19px;font-weight:700;color:#2A1A18;font-size:17px;\">How Do Competitor Prices Affect My Product Pricing?<\/summary><div itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 19px 18px;\"><p itemprop=\"text\" style=\"margin:0;font-size:15px;\">Competitor prices show what customers already expect to pay for similar products. Use them to set a realistic range, then decide whether to match, undercut, or charge a premium based on your value. Never copy a rival&#39;s price blindly, since you do not know their costs or quality.<\/p><\/div><\/details><details itemscope itemtype=\"https:\/\/schema.org\/Question\" style=\"border:1px solid #FAD9D3;border-radius:10px;margin:11px 0;background:#fff;\"><summary itemprop=\"name\" style=\"cursor:pointer;padding:16px 19px;font-weight:700;color:#2A1A18;font-size:17px;\">What Is the Easiest Way to Price a Product?<\/summary><div itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 19px 18px;\"><p itemprop=\"text\" style=\"margin:0;font-size:15px;\">Add up all the costs to make and sell one unit, then add a markup on top. This cost-plus method (Cost + Markup = Selling Price) gives you a quick, defensible baseline, which you then refine against competitor prices and customer value.<\/p><\/div><\/details><details itemscope itemtype=\"https:\/\/schema.org\/Question\" style=\"border:1px solid #FAD9D3;border-radius:10px;margin:11px 0;background:#fff;\"><summary itemprop=\"name\" style=\"cursor:pointer;padding:16px 19px;font-weight:700;color:#2A1A18;font-size:17px;\">What Is the Difference Between Markup and Margin?<\/summary><div itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 19px 18px;\"><p itemprop=\"text\" style=\"margin:0;font-size:15px;\">Margin is profit as a percentage of the selling price, while markup is profit as a percentage of the cost. For a $10 item sold at $15, the margin is 33% but the markup is 50%. They describe the same $5 profit, so always confirm which one a formula uses.<\/p><\/div><\/details><details itemscope itemtype=\"https:\/\/schema.org\/Question\" style=\"border:1px solid #FAD9D3;border-radius:10px;margin:11px 0;background:#fff;\"><summary itemprop=\"name\" style=\"cursor:pointer;padding:16px 19px;font-weight:700;color:#2A1A18;font-size:17px;\">How Do I Price a Digital Product?<\/summary><div itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 19px 18px;\"><p itemprop=\"text\" style=\"margin:0;font-size:15px;\">Because digital products cost almost nothing to reproduce, price them on value rather than cost. Research what similar products sell for, set an entry price based on the time or money they save buyers, then test tiers and bundles. A template that saves hours can command far more than its production cost.<\/p><\/div><\/details><details itemscope itemtype=\"https:\/\/schema.org\/Question\" style=\"border:1px solid #FAD9D3;border-radius:10px;margin:11px 0;background:#fff;\"><summary itemprop=\"name\" style=\"cursor:pointer;padding:16px 19px;font-weight:700;color:#2A1A18;font-size:17px;\">How Often Should I Change My Prices?<\/summary><div itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 19px 18px;\"><p itemprop=\"text\" style=\"margin:0;font-size:15px;\">Review your prices at least quarterly, and whenever your costs, competitors, or demand shift noticeably. Treat your first price as a starting point, test small changes, and let real sales data guide adjustments rather than changing prices randomly.<\/p><\/div><\/details><details itemscope itemtype=\"https:\/\/schema.org\/Question\" style=\"border:1px solid #FAD9D3;border-radius:10px;margin:11px 0;background:#fff;\"><summary itemprop=\"name\" style=\"cursor:pointer;padding:16px 19px;font-weight:700;color:#2A1A18;font-size:17px;\">What Is Psychological Pricing?<\/summary><div itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 19px 18px;\"><p itemprop=\"text\" style=\"margin:0;font-size:15px;\">Psychological pricing uses buyer perception to lift sales without cutting real profit. Common tactics include charm prices like $9.99, anchoring a higher list price next to your offer, bundling, and adding a decoy tier so the middle option looks like the best deal.<\/p><\/div><\/details><details itemscope itemtype=\"https:\/\/schema.org\/Question\" style=\"border:1px solid #FAD9D3;border-radius:10px;margin:11px 0;background:#fff;\"><summary itemprop=\"name\" style=\"cursor:pointer;padding:16px 19px;font-weight:700;color:#2A1A18;font-size:17px;\">Should I Use Cost-Plus or Value-Based Pricing?<\/summary><div itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 19px 18px;\"><p itemprop=\"text\" style=\"margin:0;font-size:15px;\">Use cost-plus to set a safe floor, then move toward value-based pricing as you learn what buyers will pay. Cost-plus is fast and reliable, while value-based pricing captures more profit when your product clearly saves time, solves a big problem, or feels premium.<\/p><\/div><\/details>\n<\/div>\n\n<!-- FAQ SCHEMA (JSON-LD)\n<script type=\"application\/ld+json\">\n{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"What Profit Margin Should I Aim For When Pricing a Product?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"It depends on your industry. A healthy margin is often around 10%, with 20% or higher considered strong. Retail can run as low as 3% to 5%, while software and luxury goods can exceed 20% to 40%. Start with your industry norm, then adjust for your costs and positioning.\"}},{\"@type\":\"Question\",\"name\":\"How Do Competitor Prices Affect My Product Pricing?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Competitor prices show what customers already expect to pay for similar products. 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This guide shows you how to price a product with a simple formula, a free [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":31923,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[],"class_list":["post-31913","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-creator-monetization-tips"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Price a Product in 2026 (Free Calculator + Formula) - brandID<\/title>\n<meta name=\"description\" content=\"Learn how to price a product in 2026 with a free calculator, a simple formula, real examples, and 6 proven pricing strategies, plus markup vs margin explained.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Price a Product in 2026 (Free Calculator + Formula) - brandID\" \/>\n<meta property=\"og:description\" content=\"Learn how to price a product in 2026 with a free calculator, a simple formula, real examples, and 6 proven pricing strategies, plus markup vs margin explained.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/\" \/>\n<meta property=\"og:site_name\" content=\"brandID\" \/>\n<meta property=\"article:published_time\" content=\"2026-07-21T11:00:52+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-07-21T11:00:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/brandid.app\/blog\/wp-content\/uploads\/2026\/03\/how-to-price-a-product-cover.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Saeed Parvar\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Saeed Parvar\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"13 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/\",\"url\":\"https:\/\/brandid.app\/blog\/how-to-price-a-product\/\",\"name\":\"How to Price a Product in 2026 (Free Calculator + Formula) - 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