The Pricing Formula
Pricing too low hurts your profit. Pricing too high kills your sales. Finding the sweet spot requires math, not guesswork.
1. Calculate COGS (Cost of Goods Sold)
Include the wholesale price, shipping from supplier, packaging materials, and any labor costs. This is your base cost.
2. Factor in Marketing Costs
If you spend 200 BDT on Facebook ads to acquire one customer, you must add 200 BDT to your product price (or absorb it if margins allow).
3. Account for Returns
In Bangladesh, COD return rates can be 10-20%. You must calculate the courier fee for returned items and bake a small percentage into your overall pricing to cover these losses.
4. Competitor Analysis
Check what others are charging, but don't blindly copy them. If you provide better packaging and faster delivery, you can charge a premium.
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