14/08/2025
How To Cost Your Products Like A Pro
Everyday I use to see people asking how much are you selling so that they will know how much they will sell their own, forgetting that cost of production varies and raw materials that i use to produce mine might be different from what they use.
One mistake many producers make is selling without knowing if they’re actually making a profit.
If you want your business to grow and last, you must learn how to cost your products correctly.
Here’s the simple formula👇
1.List all your costs
📌Raw materials (chemicals, packaging, labels)
📌Utilities (water, power, gas)
📌Labour (your time or staff’s time)
📌Transportation (delivery of materials or products)
2. Add your overhead costs
📌Rent, marketing, equipment maintenance, etc.
3.Add your desired profit margin
📌Decide how much profit you want to make per unit.
4.Divide by the quantity produced
📌This gives you the cost per unit.
Example:
If your total cost for producing 50 bottles is ₦25,000, your cost per bottle is ₦500.
If you want a ₦200 profit per bottle, your selling price should be ₦700.
✅ Remember: Pricing too low kills your profit. Pricing too high chases away customers. Find the balance.
📌 Your price should never be guesswork.... let the numbers guide you.
Sometimes if I tell people to calculate the cost of their productions it will be as though am speaking big grammar, I hope this helps.
Then if you want to compare with market price, check the market in your area before location differs .
Amb Peter Umoudo
Skill acquisition Coach
I produce and sell cleaning and hair products
I also train people on how to start up their productions from scratch.