Pricing is one of the most stressful calls a business owner makes. Set it too low and you train customers to undervalue your work—or worse, you bleed cash. Set it too high and you throttle demand. The good news: pricing isn’t guesswork. It’s structured math, plus a little psychology you can apply ethically.
This worksheet walks you through two proven paths. First is cost-plus pricing, where you total real costs and apply a margin that actually supports your business. Second is value-based pricing, where you calibrate price to the outcome your customer gets, not just your input costs. Run both side by side and you’ll see a sensible range, along with the trade-offs behind each number. Whether you sell products, services, or subscriptions, this tool helps you stop winging it and start charging confidently—within minutes.
Tool Details
- Outcome: Quickly calculate profitable prices that balance hard costs with customer value.
- Best for: Launch & Growth stages; product and service businesses.
- Time to use: 10–15 minutes.
- File formats: XLSX.
- Version: 1.0 — Last updated September 2025.
What’s Inside
- Cost-plus pricing calculator with materials, labor, overhead, and target margin.
- Value-based pricing worksheet to translate customer outcomes into willingness-to-pay.
- Step-by-step guidance with a worked example.
How to Use
- Enter your true costs (materials, labor time × hourly rate, and overhead allocation).
- Set a realistic profit margin and review the cost-plus result.
- Estimate customer value and price sensitivity to generate a value-based range, then choose a final price that fits your positioning and goals.
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FAQ
Is this worksheet only for products, or will it work for services too?
Both. For services, treat your time as labor cost at an honest hourly rate (including taxes/benefits), add any tools or subcontractors as materials/overhead, and proceed exactly the same.
What margin should I use?
There’s no universal number. For physical goods, many small businesses target 40–70% gross margin depending on category and volume. For services, effective margins often emerge from your hourly rate and utilization—use the worksheet to test scenarios and ensure your price supports profit after expenses.
How do I use value-based pricing ethically?
Anchor to real outcomes—time saved, risk reduced, or revenue gained—and be transparent about assumptions. Price for the value delivered, not artificial scarcity or pressure.
Can I combine both methods?
Yes. Many entrepreneurs set a floor with cost-plus (won’t go below) and choose a final number inside the value-based range that fits brand positioning and market norms.
Ready for the next step?
Want a full, step-by-step system for pricing, positioning, and scaling with confidence? Discover THE PLAN and build smarter from day one.
