Pricing & Sales

Setting the Price of Your Product

Updated: 2026-05-27 Holdwise editorial team Pricing Products Margin

You set the price of a product with one of three methods: cost-plus, market-based or value-based. If your price is too low, you lose money on every sale. If it is too high, customers walk away. Look for a price that gives you a profit and that customers accept. At Holdwise, we updated this answer on 27 May 2026 and change it when the rules change.

Three ways to set a price

Cost-plus: add a margin on top of your costs. You can calculate it quickly, but you leave out what customers are willing to pay.
Market-based: price relative to competitors. You can research this quickly, but competitors may keep lowering their prices until prices are too low.
Value-based: price according to the value the customer gets. This is usually the most profitable method, but you need to understand your customer well.

Know your cost price

Whatever method you use, first calculate what each product really costs you: materials, packaging, shipping, payment fees and a share of your overhead. If you sell below this cost price, you lose money on every unit. Many starters forget the hidden costs and accidentally set a price below cost.

Understand your margin

Your margin is what is left after costs. With a healthy margin, you have money to invest, to correct mistakes and to get through quiet periods. With thin margins, your business is vulnerable, and you may have to stop after one bad month.

Other ways to compete

It is difficult to be the cheapest, because someone can almost always go lower. Compete on quality, service, speed or experience. Customers are willing to pay more when they feel they get more.

Test and adjust

Your first price is rarely right. Start selling, see how customers respond, and adjust your price. If you raise a price a little, you often sell almost as much and make much more profit. Be willing to experiment.

Tip: if you are in doubt, choose a higher price. It is far easier to lower a price later than to raise it. Customers may also see a very low price as a sign of low quality.

Frequently asked questions

What is the difference between cost-plus and value-based pricing? +

With cost-plus, you add a margin to your costs. With value-based pricing, you set the price according to the value the customer receives. Value-based pricing is usually more profitable, but you need to understand your customer.

How do I know my real cost per product? +

Add up materials, packaging, shipping, payment fees and a share of overhead. Many starters forget hidden costs and accidentally price below their true cost.

Should I be the cheapest? +

Rarely. If you compete only on price, you are in a weak position. If you compete on quality, service or experience, you can charge more and build a healthier business.

Sources Belastingdienst · KVK · wetten.overheid.nl Last updated: 2026-05-27