Set a Fair Price
Set a selling price that covers the full cost of making the product and still produces a meaningful profit — by calculating cost first, then adding the target profit margin.
In this lesson
Set a Fair Price is part of Planning a Small Money Project. This preview shows how project-money connects to everyday family decisions such as earning, saving, spending choices, goals, approvals, or parent-guided money conversations inside Progress Penguin.
Think about this money choice
Chioma bakes small cakes at home. Each cake costs her 150 in local currency to make.
How it works
To earn money from a project, your selling price must be higher than your cost to make each item. Cost to make is called the cost price. The difference between the selling price and the cost price is your profit per unit. If the selling price equals or is below the cost price, the project loses money — no matter how many items you sell.
Try a real-life example
Real-life money moment: Chioma's cakes cost 150 in local currency each to make. She sells them for 150 in local currency. Profit per cake: zero. She sells 20 cakes and earns 3000 in local currency — but spent 3000 in local currency making them. She worked for free. The selling price must be higher than the cost to make the project worthwhile.
Activity preview
Complete one earning action
Open your tasks and submit a completed task or earning proof for parent review.
Quiz preview
Setting a Fair Price for your product or service means:
Your bracelets cost 120 in local currency each to make. A fair selling price should be: