Strategy for pricing your products Pricing your products is one of the cornerstone decisions you’ll make because it impacts almost every aspect of your business. Your pricing is a deciding factor in everything from your cash flow to your profit margins to which expenses you can afford to cover. Fees and margins vary based on the supplier's category; please ask your Found in Italy contact for your category margin. Supplier prices must take into account the Found in Italy designated margin for related categories. Consider the following points when pricing your products: The extra value you provide Building a business takes time, effort, and money. Any content that you create, unique combinations of products that you find, or extra customer support that you offer can all increase the value of your products. The resources that you invest and any additional value you provide to your customers should be reflected in your products' pricing. Other expenses or business costs, such as marketing expenses, your Found in Italy subscription, and transaction fees Consider these expenses when setting your products' prices. These are necessary business costs, so your price must cover these costs at the very least. Competitors' prices for similar products Looking at stores that sell similar products can help you determine the average cost of the products you're selling. Here’s a sample list of costs you might incur on each product. Cost of goods sold $3.25 Production time $2.00 Packaging $1.78 Promotional materials $0.75 Shipping, Returns & Insurance $4.50 Affiliate commissions $2.00 · Total per-product cost $14.28 In this example, your total per-product cost is $14.28