Pricing is the highest-leverage variable in your P&L. A 10% price increase often outperforms months of ad optimization. Here's how to think about it.
Start with unit economics
Your price must cover: COGS, shipping, transaction fees, refund reserve, and target contribution margin. If your CAC is €25, aim for at least 3x CAC in gross profit per order.
Value-based pricing beats cost-plus
Ask 'what is this worth to the customer?' before 'what did it cost me?'. A €4 supplement wrapped in a great brand can sell for €39 and delight buyers.
Anchoring and bundles
- Show a 'Buy 3' bundle as the default option — anchors AOV higher
- Charm pricing (€29 vs €30) still lifts conversion on lower-ticket items
- Round pricing (€100) feels more premium on luxury or gifting products
Test with real customers
Run an A/B on two price points for two weeks. If conversion drops less than the price increase, keep the new price. Repeat quarterly.