Generated from an approved conversation, then reviewed by participants. Corrections stay visible.
Begin with the full cost of one item: materials, paid time, and a fair share of overhead. Add the margin the business needs, then compare the result with the value and alternatives customers see.
Building the idea, one step at a time
Materials include more than the visible ingredients. Packaging, shipping supplies, spoilage, and test pieces belong in the cost when they are part of making a sale.
Paying for time turns labor into a real input instead of whatever remains after expenses. Include making, finishing, customer communication, and fulfillment.
Overhead spreads shared costs—tools, rent, fees, marketing, administration—across the work that supports them. A simple monthly estimate is enough to begin.
Your calculated floor and the customer’s perceived value answer different questions. Use both: protect sustainability first, then refine the offer, audience, or process.