Beginner’s Guide: Pricing Your Products

Pricing your products

Begin by calculating your product prices in a way that allows you to be profitable at the wholesale price point.

If you are directly making the product, calculate your initial cost as,

Materials + Labor (paying yourself for your time) + Overhead = Production Cost

Next, determine what your profit margin should be. Then calculate your wholesale price as follows:

Production cost + Profit = Wholesale Price

Alternatively, if you are buying from other producers for resale, calculate your initial costs as,

Purchase price + Overhead = Product Cost

Then,

Product cost + Profit = Wholesale Price

Now that you have a comfortable wholesale price, you are protected if customers request to buy in bulk.

Calculate your retail price:

Wholesale Price x (at least) 2 = Retail Price

Another approach when calculating your Retail Pricing is to begin with a price you think buyers will likely pay for your product then divide that price in two to arrive at Wholesale Price.


Other factors to consider in Pricing your products:

AfriMod charges commission on all sales. You may choose to add AfriMod commission to your retail pricing. If you choose to, your calculations will be as follows:

Your Retail Price + % (AfriMod commission) = Final Product Sale Price

Shipping and Handling Costs:

Contact your local Post Office to determine international shipping (postal) rate for your products to the Americas, Europe and Asia. We recommend that you include this shipping cost in your listings unless it is already built into your final retail price.

 

Sorry, content is intended for registered AfriMod users only.   Please login to continue: Login