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Pricing & Profit

Can you afford that discount?

Look at your numbers, not just your gut, before you lower your prices.

MakerVista · Seller education

Compare what remains, not just the sale price

Before offering a discount, write down your regular price and the proposed sale price. Then calculate what each leaves after the expenses you include in your estimate. Materials, packaging and production time usually do not fall when the selling price does.

For an illustrative example, a $30 product with $18 in included costs leaves $12 before any expenses excluded from that calculation. A 20% discount lowers the price to $24. If those included costs stay at $18, the amount remaining falls to $6. The price fell by one fifth, but the remaining amount fell by half. This simplified example holds costs constant; price-based selling fees may change.

Make the comparison complete

Include the materials and packaging used for one item, a clearly stated allowance for your time, your shipping costs and the applicable selling expenses. If buyer-paid shipping is part of the revenue you enter, include the full postage expense too. Use consistent assumptions for both prices.

Remember the expenses outside your per-item calculation, such as equipment, software or workspace costs. Label the result as an estimate and keep a note of what it includes. A positive amount after direct costs does not mean all business expenses are covered.

Consider the extra work

A promotion can mean more packing, customer messages and production time. Ask whether you have enough stock and time to fulfill the orders you could receive. A lower price does not guarantee additional demand.

Choose a limited set of products for your first comparison. An item made efficiently in a batch may have a different cost picture from one requiring detailed personalization. Avoid assuming that a single discount works equally well across your shop.

Check one promotion before you launch it

Use the free MakerVista Profit Calculator to compare your regular price with the discounted price using your own figures. No account is needed. Review the assumptions before relying on the result.

Write down the price you choose, the reason and the date. After the promotion, compare the estimate with the actual order expenses and time involved. Use that record when deciding whether to repeat it.