ARE YOU PAYING TO WORK? IS THE PRICE OF YOUR PRODUCT REALLY GIVING YOU PROFIT?

Do You Feel Like You're Selling, but There's Never Any Money Left Over?

It feels like you're always running, producing, delivering... but at the end of the month, your balance is zero? Then listen closely: you might be paying to work and haven’t even realized it yet. And it all starts with one simple mistake: wrong pricing.

The most common error is setting prices based on guesswork—or copying your competitor. The shop next door charges \$59.90, so you do the same, without knowing whether that price covers your costs, labor, packaging, and most importantly… your profit!

Just because your competitor charges cheap doesn’t mean she’s making money. Sometimes, she’s losing money—just faster than you!

Let’s do a quick calculation. Take one product you sell and figure out:

* Selling price

* Fixed costs of your store

* Variable costs

* Profit margin (If you're unsure, start with a minimum margin of 30%)

If after this calculation the selling price is lower than the total costs... something’s wrong.

To fix this, create a simple spreadsheet with these fields. Write it down for every product. You need to look at your business like a company—and a company that doesn’t profit, shuts down.

You’re not here to play shop. You’re here to build something with purpose. Your pricing needs to reflect the value of your work, your care, your time, and the money you’ve invested.

Now that you’ve realized your results are negative or below expectations, let’s find the root of the issue. Ask yourself these questions about your children's clothing business:

* Are your direct costs too high?

* Did you calculate your fixed costs correctly (rent, electricity, packaging)?

* Are you giving too many discounts and burning your margin?

* Is your expected profit margin unrealistic?

The good news is: you can fix all of this. You can correct your pricing strategy and work with more attractive margins by taking these 4 practical actions:

1. Recalculate your real markup.

Include all costs and clearly define the profit you want. No guessing!

2. Negotiate better with suppliers.

Even a 10% discount on purchases can completely change your pricing and margins. Remember: the secret to profit is in the purchase. If you buy smart, you sell smart.

3. Review your sales prices.

Compare with competitors, but stay grounded in your own cost structure.

4. Remove products that don’t bring profit.

Sometimes your bestsellers are also your biggest loss-makers. Focus on what’s profitable! Highlight these products in your store—whether it’s physical or online. Encourage purchases of high-margin items.

Profit doesn't come from effort alone—it comes from strategy.

You don’t need to work more. You need to decide better. And for that, you need to look at your numbers bravely, understand what they say, and make adjustments with clarity.

🎥 Watch my content on the Sou um Sucesso YouTube channel. I teach women entrepreneurs how to manage their businesses with high performance and profitability.

Now that you know what to do after finding out you're in the red, it’s time to act! Audit your entire pricing structure and identify where you're making money—and where you’re not. Only after a clear and honest analysis will you be ready to improve your children's clothing store results.

Kelly Galvão

Commercial Management Specialist