# LaunchDeck — Pricing Calculator

Use this to find the right price for your product or service.

## Step 1: Calculate Your Costs

| Cost Type | Example | Amount ($) |
|-----------|---------|-----------|
| Materials / supplies | What you spend to make one unit | |
| Your time (hourly rate) | What your time is worth (aim for $20-50/hr starting out) | |
| Platform / tools fees | Stripe takes ~3%, any subscriptions you pay | |
| Shipping / delivery | If applicable | |
| Customer support time | Estimate how long per customer | |
| **Total Cost Per Sale** | | **$0.00** |

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## Step 2: Set Your Target Profit Margin

Most new founders underprice. Here's a quick reference:

| Margin Target | Who it's for |
|---------------|-------------|
| 30-40% | Commoditized products, high volume, cost-sensitive market |
| 50-60% | Standard services and products, balanced approach |
| 70%+ | Premium positioning, high perceived value, unique offer |

**Your target margin: ___%**

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## Step 3: Calculate Your Minimum Viable Price

```
Minimum Price = Total Cost ÷ (1 - Target Margin)

Example: If your cost is $15 and you want 60% margin:
$15 ÷ (1 - 0.60) = $15 ÷ 0.40 = $37.50
```

**Your Minimum Viable Price: $0.00**

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## Step 4: Adjust for Market Reality

| Factor | Adjustment |
|--------|-----------|
| Competitors charge $X | Use as a reality check — are you delivering more or less? |
| Customer says "that's too expensive" | Either improve the offer or reduce costs — don't just lower price |
| Customers are happy and not negotiating | You might be underpricing. Test a 10% raise. |
| You're losing sales and nobody says why | Likely price. Try a payment plan or lower tier option. |

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## Step 5: Pick Your Price

| Strategy | When to use it | Example |
|----------|---------------|---------|
| **Penetration pricing** | Entering a crowded market, need volume | Start at $19 instead of $29, raise after 3 months |
| **Premium pricing** | You have a unique angle, quality is visible | Price at 20% above market, justify with quality |
| **Value-based pricing** | Hard to compare, strong transformation | Price based on the outcome you deliver, not your time |
| **Freemium / anchor** | Software, digital products | Free tier to get users, $X/mo for the real thing |

**Your final price: $___**

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## Scenario Calculator

| Scenario | Cost | Margin | Price | Profit Per Sale |
|----------|------|---------|-------|-----------------|
| Conservative | $___ | 40% | $___ | $___ |
| Target | $___ | 60% | $___ | $___ |
| Aggressive | $___ | 80% | $___ | $___ |

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## Quick Test

If a customer asked "What do I get for $X?" — could you answer in one sentence confidently?

If not, your offer isn't clear enough. Go back and define the transformation, not the feature.

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*Rule of thumb: it's always easier to lower a high price than raise a low one. Start higher than you think.*