Easten Mediatech
1. What does each sale actually cost us?
Count materials, labour, delivery, payment fees and returns before calling a sale profitable.
Allocate a sensible share of rent, software and other overheads where they affect the product or service.
A low sticker price can look competitive while quietly losing money on every order.
2. How many sales do we need to break even?
The US Small Business Administration defines break-even units using fixed cost and contribution per sale.
Subtract variable cost from selling price, then divide fixed costs by that amount.
Use realistic volumes; a spreadsheet target is not a customer order or guaranteed revenue.
3. What value can a customer clearly see?
A price should reflect more than cost. Consider speed, reliability, service and the problem solved.
Ask recent customers what they compared before buying, and record the answers without leading them.
Australia's business guidance recommends testing what customers value rather than copying a rival's price.
4. Will a discount grow profit or only volume?
Calculate the new margin before launching a percentage-off offer or a bundle.
Ask whether the promotion attracts new buyers, clears stock or encourages profitable repeat orders.
Set an end date and measure both sales and contribution, not just clicks or gross revenue.
5. When should we review prices again?
Review when costs, demand or customer expectations change, and set a regular calendar check.
Test a price on a limited offer, listen to objections and track conversion alongside profit.
A planned review gives a growing business room to invest in quality, staff and customer experience.
Sources
- Australian Government: choose a pricing strategy2026-10; accessed 2026-10-29
- US Small Business Administration: break-even pointUndated; accessed 2026-10-29
- Shopify Help: pricing your productsUndated; accessed 2026-10-29