The Big Mistake
Most shop owners price their products by guessing.
They look at what the neighbor charges and copy it.
Or they add a little something to what they paid and hope it is enough.
Sometimes they make money. Sometimes they do not. They never really know.
This is dangerous. Because if you do not know your real profit, you are not running a business. You are gambling.
Revenue Is Not Profit
Let me say it again.
Revenue is not profit.
Revenue is what the customer pays you.
Profit is what is left after you pay for everything.
Example:
You sell a phone case for 2,000 naira.
You think you made 2,000 naira.
But you forgot:
- You bought the case for 1,200 naira
- You paid transport to bring it to your shop
- You pay rent every day
- You pay your worker every day
- You pay for power every day
After all that, your real profit might be 300 naira. Not 2,000.
The Simple Formula
Here is how to price properly. Anyone can do this.
Step 1: Know your product cost
How much did YOU pay for this item?
Include:
- Purchase price
- Transport to your shop
- Any import fees or taxes
- Packaging if you added it
This is your baseline. You cannot price below this unless you want to lose money.
Step 2: Know your daily overhead
These are costs that happen every day whether you sell anything or not.
- Rent: Divide monthly rent by 30
- Worker salary: Divide monthly pay by 30
- Power or fuel: Average per day
- Any other daily costs
Add them up. That is your daily must-cover amount.
Step 3: Add your profit
Decide how much profit you want to make each day.
Example:
- Daily overhead: 5,000 naira
- Target profit: 10,000 naira
- Total needed: 15,000 naira per day
Now divide by how many products you expect to sell.
If you expect to sell 30 items today, each item needs to contribute 500 naira toward your goal.
Step 4: Check the market
Can customers pay this price?
If yes, great.
If no, you have three options:
- Find cheaper stock
- Sell more items to hit your target
- Add value so customers accept the price
Never just lower your price and hope. That is how shops die.
A Real Example
Let me show you how this works for a real shop.
Shop: Small electronics store Monthly rent: 60,000 naira Daily rent: 2,000 naira Worker salary: 45,000 naira per month Daily worker cost: 1,500 naira Power/fuel: 1,000 naira per day
Total daily overhead: 4,500 naira
Target daily profit: 15,000 naira Total needed: 19,500 naira per day
Product: Phone charger Cost: 800 naira Expected daily sales: 20 chargers
Each charger needs to contribute: 19,500 divided by 20 = 975 naira
Minimum price: 800 + 975 = 1,775 naira
Round up to 1,800 naira.
That is your price. Not what the neighbor charges. Not what feels right. What your business needs.
What If the Market Says No?
Sometimes customers will not pay your calculated price.
Then you have a business decision to make.
Option 1: Find a cheaper supplier
If you can buy the charger for 600 naira instead of 800, your price can drop without hurting profit.
Option 2: Sell more products
If you sell 30 chargers instead of 20, each one needs to contribute less.
Option 3: Sell something else
Maybe phone chargers are too competitive. Maybe screen protectors have better margins. Focus on what makes you money.
Option 4: Bundle
Sell charger + screen protector + case as a package. The bundle price feels like a deal to the customer. But your profit is higher.
The Habit That Changes Everything
Write down your numbers every day.
Not from memory. On paper. Or on your phone.
- What did I sell today?
- What did each item cost me?
- What was my real profit?
After one week, you will see patterns.
You will know which products make you money. You will know which days are slow. You will know if your worker is performing.
Knowledge is power. And power is profit.
How Jua Helps With Pricing
Jua OS tracks every sale automatically.
You do not need to write things down. You do not need to calculate at night.
You open your phone. You see:
- Todays total sales
- Todays total profit
- Which products sold most
- Which products made the most profit
In plain words. No confusing charts.
And it is free for 21 days. So you can see your real numbers without risk.
But again, this article is not about Jua. It is about you.
Stop guessing. Start knowing.
Final Thought
Pricing is not about being cheap.
Pricing is about being correct.
Correct means you cover your costs. Correct means you pay yourself. Correct means your shop survives slow months.
The shop owners who grow from one shop to three?
They know their numbers.
Not from memory. From tracking.
Start today.