ManagementJune 9, 2026· 7 min read

How to set prices and margins in your shop without losing money

Selling a lot is useless if the margin is so low you don't earn. Pricing well is what separates a shop that bills from one that really makes money. Here it is, clearly.

Margin isn't the same as turnover

Many people confuse the terms and price badly because of it. The key idea is simple:

Margin is what you keep. If you buy a product for €1 and sell it for €1.50, your margin is €0.50 per unit. Multiplied by all sales, that's your profit.

The typical mistake: applying the same percentage to everything without looking at the real cost (with VAT, shrinkage and expenses), and finding at month-end that some products were sold almost at a loss.

How to set a price that earns

Start from the real cost

Not just what you pay the supplier: add VAT, transport and that product's share of shrinkage.

Apply the margin you need

Calculate the margin that covers your fixed costs and leaves profit. Not every product has to carry the same.

Compare with the market

Your price must be competitive, but don't copy without knowing your cost: adjust margin or supplier if it doesn't add up.

Tip: play with margin by category. On heavily compared "hook" products you can tighten margin; on less visible ones, recover it. What matters is the overall profit.

Know the real margin with your POS

If you record the purchase and sale price of each product, your POS tells you the real margin of each sale and which leave you most. So you stop pricing "by eye" and really know what makes you money.

Set prices that actually make profit

Bipe shows the real margin of each product and which leave you most, so you decide with data. Try it free.

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Frequently asked questions

What is the commercial margin?

It's the difference between what a product costs you and what you sell it for. Buy it for €1, sell for €1.50, and your margin is €0.50 per unit. Multiplied by sales, that forms your profit.

Should I put the same margin on everything?

No. The norm is to adjust margin by category: less on heavily compared products that attract customers, more on less visible ones. What matters is overall profit, not each item in isolation.

How do I know each product's real margin?

By recording purchase and sale price in your POS. That way you see each sale's margin and which leave you most. Without that data, you price blind and may be selling at a loss without knowing.