Learn / Pricing basics
Pricing without guesswork
Price too high and customers walk. Too low and you work hard for nothing. The fix is knowing your cost floor—not copying the neighbour.
The business problem
A customer haggles; you drop KES 20 to close the sale. You never checked whether KES 20 was your entire margin. By Friday you have volume but no money for restock.
Why it matters
Price covers three things: what you paid for the item, a share of shop costs (rent, power, wages), and something left for you. Without a cost floor, every discount eats survival—not just profit.
Common mistakes
- Matching the shop next door without knowing their supplier deal
- Forgetting transport and breakage in cost price
- Uniform markup on everything—high and low movers treated the same
- Staff discounts with no recorded price in the system
Best practices
- Record cost price when you add stock—not only sell price
- Know minimum margin on top 20 items by heart
- Bundle or upsell on high-margin lines instead of deep discounting
- Review prices when supplier invoices change
How F-Biz by Fayvad helps
Items carry cost and sell price. At checkout the price is fixed in the system—less “wrong item, wrong price” during rush hour. Pair with expenses and Insights to see whether discounts are affordable.
Action to take today
Pick your #1 best seller. Confirm cost price and sell price in the app. Calculate margin in shillings—not percent—and decide the smallest discount you can afford.