There are two ways to price a product.
Method 1 (wrong): Cost + your desired margin = price
Method 2 (right): Market price → work backwards to required cost → source accordingly
Most first-time importers use Method 1. It's intuitive. It feels safe. It also frequently produces products that are either priced out of the market or underpriced relative to value.
Why Method 1 fails:
Your landed cost is $8. You want 50% margin. Price: $16.
Your competitor sells the same product for $12.99. You lose.
Or worse: Your competitor sells a similar product for $29.99. You left $14 on the table.
Your cost has nothing to do with what the market will pay.
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