Research your competitors' pricing, understand your customers' willingness to pay, and calculate the minimum markup needed to cover all costs and desired profit. Many businesses start with industry-standard markups and adjust based on market response and competitive positioning.

Yes, include every direct and indirect cost: materials, labor, shipping, packaging, and a fair allocation of overhead like rent and utilities. Using only the raw material cost will result in a markup that does not actually cover your full expenses, leading to lower-than-expected profits.

Review pricing quarterly or whenever significant cost changes occur (new supplier rates, shipping increases, tariffs). Additionally, monitor competitor pricing and customer feedback continuously. Small, regular price adjustments are generally better received by customers than large, infrequent increases.