Lesson 3: Pricing for Profit

Pricing is not guessing.

Include:

  • Cost of materials
  • Time spent
  • Delivery/logistics

👉 Profit is not optional—it’s sustainability.

Understanding Your Costs:

  • Materials cost
  • Labor/time investment
  • Overhead expenses
  • Platform fees (15% on Gwanga)

Pricing Formula:
Materials + Labor + Overhead + Profit Margin = Final Price

Example:

  • Materials: UGX 5,000
  • Labor (2 hours @ UGX 5,000/hr): UGX 10,000
  • Overhead: UGX 2,000
  • Subtotal: UGX 17,000
  • Add 30% profit: UGX 22,100
  • Add 15% platform fee buffer: UGX 25,415

Final Price: UGX 25,000 (rounded)

Market-based pricing

Pricing formula:

Market-base pricing = cost of product + market factor price + premium

Market-based pricing is an ideal choice for supporting revenue and competitiveness. Using competitors as a benchmark allows Makers to select the most competitive price upon launching a product.

 

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