Unit price is a typically commercial concept. Although it sounds serious, in reality we encounter it in every purchase. The unit price for your products or services must be set by every entrepreneur. In doing so, it is important to take into account all the costs of doing business. Find out how to set unit prices and not incur a loss.
What is the unit price?
What is the unit price? It can be regarded as legal jargon because, at first glance, it is no different from the generally accepted concept of 'price'. In laws and regulations, it refers to the cost of a single good or service that may be sold in larger, countable quantities and sets.
Every trader is obliged to display unit prices prominently next to products or in the price list for services. However, if they are the same as the standard price, it is sufficient to make one of them visible. Unit prices should definitely be listed for goods sold by the kilogram, metre, litre or other unit of volume. 
Unit pricing and company costs
The net unit price is not the same as the gross price. The seller must determine the final amount based on the expenses incurred, which consist of much more than the cost of purchasing the goods. At the same time, the price still has to be attractive to customers.
How do you calculate the unit price of a product in order to make money from it? It is necessary to add up all the costs involved in selling the goods. These include its purchase, as well as expenses for packaging, shipping, staff salaries, advertising, insurance premiums and taxes. If you keep the goods in an external warehouse, add the costs of storage or space rental.
When setting unit prices, you must also consider the market situation. Do a competitor analysis and consider how to differentiate your offer. It does not necessarily have to be characterised by a low price. Consumers are also attracted by high quality or a corporate image that is consistent with their values. Today, many retailers rely on environmentally friendly production. Understandably, this generates higher costs.
Unit prices in services - how to set and quote them?
The obligation to indicate unit prices is not only incumbent on traders selling goods, but also on service providers. For them, it is necessary to clearly specify the scope and type of service. In many professions, the net unit price is expressed as an hourly rate.
Freelancers, on the other hand, determine their own method of billing, but usually adapt it to the rules generally accepted in the market. Depending on the type of service, they may charge for a specific result, products created, work, kilometres travelled or consultation time.
When establishing a price list or presenting a quotation to a customer, it should be noted whether the unit price quoted includes the cost of materials used. Setting the rate is done in the same way as when selling products. You need to take all costs into account and then price your time and the value transferred to the customer accordingly.
