do the math! $$$ matters Lesson 07

Pricing & Profit

This is the lesson new sellers skip and then quit three months later wondering why they "sold 30 shirts and have $40." Math matters. Let's get real.

The price formula

Retail price = Printful base cost + Platform fees + Your profit

Sounds obvious but most people forget the middle piece. Let's break each part down with a real example.

Example: a unisex t-shirt on Etsy

Pricing it

Say you list the shirt at $28 with free shipping (you absorb shipping into the price — customers love "free shipping").

Line item Amount
Customer pays$28.00
Printful product-$12.95
Printful shipping-$4.69
Etsy transaction (6.5%)-$1.82
Etsy payment (3% + $0.25)-$1.09
Etsy listing-$0.20
Your profit~$7.25

~26% margin. Not bad. But if Etsy's offsite ads triggered, subtract another ~$4.20, leaving you ~$3 profit. Plan for the worst case.

Pricing too low = you work for free. Pricing at $20 with the math above would leave you with $0.50 profit per shirt. Don't undersell yourself just to "be competitive."

Pricing rules of thumb

The "premium positioning" play

Cheap POD shops race to the bottom and die. Premium-positioned brands charge $32-$38 for a tee and customers feel they're getting something special. The difference is:

You're not just selling a shirt. You're selling membership in a vibe.

Shipping strategy

Free shipping wins. Bake the shipping cost into your retail price. Etsy's algorithm also prioritizes free-shipping listings. Customers psychologically dislike shipping fees more than higher product prices.

Sales & discounts

Don't run "30% off everything" promos constantly — it teaches customers to wait for sales. Instead:

Action step