Pricing is tricky when you're new. Learn how to price your service or product without chasing yourself—and how to adjust over time.

Don’t Guess Your Price—Design It With Purpose

One of the most common mistakes new businesses make is setting prices too low because they fear rejection. But under‑pricing hurts your margins, brand perception, and sustainability. Here’s how to set healthy prices from the start.

1. Cost + Margin First

Calculate your full cost (materials, labor, overhead, tools). Add the margin you need. That gives your floor. Then test higher options.

2. Value-Based Pricing Over Cost-Based

Ask: how much would customers *pay* for the benefit or transformation you offer? Price what’s reasonable in their eyes—not just what balances your books.

Offer Basic, Plus, and Premium. Most customers pick the middle. Placing a high anchor makes mid-tier feel like a value deal.

A 10% launch discount to early buyers is fine. But avoid constant discounting. Use your POS to track discount use and protect your margin.

Every 3–6 months, revisit pricing. As costs change or demand shifts, your price must evolve. Use your sales data to guide changes—not gut feel.

With a flexible pricing engine behind you, you can test, optimize, and scale without chaos. M&M POS gives you the tools to set multiple price tiers, run experiments, and monitor margin leakage in real time.

Final Thought

Pricing isn’t one and done. It’s a continual decision you adjust as your business and market evolve. Start strong, stay informed, and don’t fear adjustments.