Lesson 2 of 12 · 10 min

Three ways to set a price

Most makers price too low. There are three ways to think about it, and you should try all three.

1. 1Cost-plus: what it costs you, plus a margin. This tells you the floor.
2. 2Market: what similar things sell for. This tells you what people expect.
3. 3Value: what it’s worth to the buyer. A workshop that changes someone’s writing is worth more than the hours it takes.
4. 4Your price usually lands between the market and the value, never below cost-plus.