Pricing Floor

Your pricing floor is the minimum price at which a sale is profitable. Every price below this line loses money.

Pricing Floor Formula

Pricing floor = (Product cost + Shipping + Platform fee + Payment fee + Refund reserve + Time cost) x 1.25

The 1.25 multiplier ensures a 20% buffer for unexpected costs.

Component Breakdown

Product Cost

• Manufacturing or creation cost
• Packaging materials
• Quality inspection
• Tool/software amortization (for digital)

Shipping

• Domestic shipping to fulfillment center
• International shipping to customer
• Insurance and tracking
• Handling and packaging labor

Platform Fee

• Listing fees
• Transaction fees (percentage)
• Subscription fees (monthly)