Before launching a new service or digital product, answer one basic question: What will remain from each sale after the costs of delivering it? Revenue alone does not answer that question.
1. Define one deliverable
Write down exactly what the customer receives, how long delivery takes, which materials or licences are involved, what support is included, and what is not included. A vague offer is difficult to price and difficult for a buyer to trust.
2. Calculate the variable cost of one order
Start with your expected time, direct materials, payment-processing costs, platform or marketplace charges, fulfillment costs and a realistic allowance for refunds or replacement work. If you do not know a cost, label it unknown rather than estimating it as zero.
3. Work through a fictional example
Suppose a local business offers one clearly scoped service for CAD $60. It expects 1.5 hours of work at an internal labour cost of $20 per hour ($30), $8 in materials, $2 in processing and other per-order fees, and a $3 allowance for returns or rework.
- Customer price: $60
- Labour allocation: $30
- Materials: $8
- Per-order fees: $2
- Rework allowance: $3
- Estimated contribution per order: $17 ($60 minus $43)
That is an estimated contribution of about 28.3% of the selling price, not net profit. It does not yet cover fixed overhead, accounting, equipment, insurance, income taxes or unexpected changes in demand or delivery costs. Actual processor and tax charges must be verified for the business and payment method.
4. Check what the buyer sees
For a physical product, add the shipping charge, applicable taxes, delivery restrictions, and any additional costs before you compare offers. A low advertised price can become expensive at checkout. For a digital download, explain the file type, device requirements, licence, delivery method and refund terms before the buyer pays.
5. Test interest before scaling
Speak with potential customers who match your intended audience, compare real alternatives, and test whether the offer solves a problem they will pay to address. Track actual orders, completed deliveries and verified contribution—not clicks, draft products or optimistic revenue targets. If the result is weak, change one assumption at a time and test again.
Practical SHAI resources
SHAI Builder Studio — CAD $25 is a one-time downloadable offline toolkit containing a pricing calculator, customer quote builder and 30-day launch planner. A computer is recommended for the interactive tools. No consulting, paid AI subscription or guarantee of sales is included.
SHAI Workflow Library — CAD $9.99 provides eight reusable PDF workflows for career, learning and business decisions. You can also compare SHAI free and paid digital resources before choosing a product.
These tools provide educational planning support, not individualized legal, tax, accounting or financial advice. Verify current rules and estimates before committing money or giving a customer a binding quote.