Pricing for Profit

Full cost per unit

Material          18 g × $0.025/g        = $0.45
Machine time      3 h × $0.30/h          = $0.90
Labour            15 min × $25/h         = $6.25
Packaging                                 = $0.80
Failure margin    10% of production       = $0.76
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Cost per unit                              ≈ $9.16

Labour is usually the largest cost. If you do not pay yourself, the business is not profitable; it is a hobby funding customers.

Marketplace fees

Platforms charge listing fees, transaction fees and payment processing, and sometimes advertising fees. Include them:

Price needed = (cost + desired profit) / (1 − total fee percentage)

Pricing strategy

• Price based on value and competition, not only cost. A personalised gift is worth more than its plastic.
• Offer tiers (standard, premium colour, personalised).
• Free shipping often converts better; build shipping into the price.
• Avoid racing to the bottom: compete on quality, design, photos and service.

Review prices regularly

Filament, electricity, shipping and platform fees change. Recalculate costs every few months and after any fee change, and raise prices when margins shrink rather than absorbing the loss.

Exercise

Calculate the full cost of one product including labour, packaging, failures and platform fees, then set three price tiers and estimate monthly profit at 20, 50 and 100 sales.

Check yourself

• What is usually the largest cost in a 3D-printed product?
• How do you include percentage fees in a price?
• Why is competing only on price risky?