How to Price Your Products
5 min read
Most Egyptian brands price products by copying competitors or adding a random markup. The result: some products lose money without you realizing it. Here's a systematic approach to pricing that protects your margin.
Start with your all-in cost
Before you set a price, calculate your total cost per order: COGS (purchase price), inbound shipping if applicable, packaging (box, bubble wrap, sticker, tissue paper), courier delivery fee (assume 35–50 EGP depending on your courier), a return buffer (if 30% return rate, factor in the return fee × 0.3), and any platform fees (Shopify, social commerce). This is your true floor.
The minimum price formula
Minimum price = all-in cost ÷ (1 − target margin). If your all-in cost is 280 EGP and you want 30% net margin, minimum price = 280 ÷ 0.70 = 400 EGP. Selling below this means you lose money on every order. Many brands discover this number is higher than their current price.
Where Egyptian brands go wrong
The two most common pricing mistakes: ignoring return rates (a 35% return rate on COD orders has real cost — failed delivery fee + extra handling), and not including ad spend in the cost calculation. If you spend 10,000 EGP on ads to generate 100 orders, that's 100 EGP per order in ad cost that needs to be covered.
Market pricing vs. cost pricing
Your cost calculation gives you the floor. The market gives you the ceiling. If you need to charge 550 EGP to make a 30% margin and the market only supports 400 EGP, you have a unit economics problem — not a pricing problem. The solution is either to reduce COGS (negotiate better with supplier), reduce returns (improve product description), or accept a lower margin target.
Review pricing every quarter
Costs change. Supplier prices increase. Courier fees go up. Ad costs fluctuate. Set a quarterly reminder to recalculate your all-in cost for your top 10 SKUs and verify your pricing still holds. A product that was profitable at launch can quietly become a loser after 6 months of inflation.
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