How to Price Products for Resale and Protect Your Margin (2026)

Many small traders lose money without knowing it because they copy the market price and never check what each item really costs them. Learning how to price products for resale is the difference between being busy and being profitable. This guide explains the two ideas people mix up, markup and margin, shows the formulas, lists the costs that should go into your price and gives a simple price list method you can use in Lagos, Accra, Nairobi, Kampala or anywhere else. All the numbers below are for example only. They are not market prices, and we do not state what margin you should earn, because that depends on your product, competition and costs.

Cost of goods: start with what you really pay

Your cost of goods is not just the price on the supplier's invoice. For a reseller, it normally includes:

The purchase price of the item.
Transport from the supplier or port to your store.
Duties, clearing and handling if you import. Our guide on calculating landed cost covers these.
Packaging, bags, boxes and labels.
Bank, transfer or payment charges paid to buy the goods.
An allowance for breakage, theft, expiry and returns.

Add these up per unit. This landed or full cost per unit is the number you price from. If you buy a carton of 24 items and pay transport and a loading fee for the carton, divide the total by 24, not by what you wish you had paid.

How to price products for resale: markup vs margin

These two words describe the same profit in different ways. A Toronto Metropolitan University marketing resource on margins and markups gives the formulas this way:

Markup % = (Price − Cost) ÷ Cost. It measures the profit as a share of cost.
Margin % = (Price − Cost) ÷ Price. It measures the profit as a share of the selling price.
To get a price from a markup: Price = Cost × (1 + Markup %).
To get a price from a margin: Price = Cost ÷ (1 − Margin %).

The same resource gives a worked example: an item costing 10 and selling at 15 has a profit of 5, which is a margin of 33 percent and a markup of 50 percent. Read the resource yourself for the full formulas. The danger is simple: if you add 20 percent to your cost and call it a 20 percent margin, you are wrong. For example, a cost of 100 with a 20 percent markup gives a price of 120, but the margin is only about 17 percent. If you really want a 20 percent margin on a cost of 100, the price must be 125, which is a 25 percent markup.

Cost	Selling price	Markup	Margin
100	120	20%	about 17%
100	125	25%	20%
100	150	50%	about 33%
100	200	100%	50%

The figures in this table are an arithmetic example, not advice on what to charge.

Gross margin is not your take-home money

The margin above is before your running costs. Rent, staff, power, phone data, delivery, licences, loan repayments and your own pay all come out of it. A product with a decent margin can still lose money if it sells too slowly to cover rent. That is why traders watch two things together: margin on each sale and how fast stock sells. A smaller margin on a fast mover can beat a bigger margin on something that sits for months. Our guide on how to start a supermarket in Nigeria explains stock turnover in a retail setting.

How to price products for resale: a simple price list method

List your items. One row per item or pack size.
Write the full unit cost. Include transport, handling and losses as described above.
Choose a target margin per category. Decide whether you will aim for a fixed margin, or different ones for fast movers and slow movers. Choose them from your own costs, not from what another trader says.
Calculate the price with Price = Cost ÷ (1 − Margin %).
Compare with the market. Visit or message competitors for the same item and pack size. If you are far above, ask whether your costs are too high or your product is different. If you are below, ask whether you are giving profit away.
Round sensibly. Round to a price that is easy to pay in cash, but check the rounding does not cut your margin.
Review regularly. Update the list whenever supplier prices change.

For example, suppose you buy an item and your full unit cost, including transport, packaging and a small allowance for losses, is 120. If you want a 25 percent margin, the price is 120 ÷ 0.75 = 160. If a competitor sells the same item at 150, you now know the cost of matching them: your margin would fall to 20 percent, so you need to be sure you can still pay your running costs.

Pricing when your currency moves

If you import or buy goods linked to the dollar, a change in the naira, cedi, shilling or other local currency can change your cost between ordering and selling. Keep a note of the exchange rate you used to set each price, and update your list when the rate or supplier price changes. Where possible, quote prices that are valid for a short time and avoid long fixed price promises. Our guides on currency risk and pricing and pricing for African buyers using landed cost explain more, and you can also look at our price guide. Prices on any site move, so confirm with sellers before you decide.

Wholesale prices, bulk discounts and credit

If you sell to other shops, set price tiers by quantity. A single piece, a half dozen and a carton can each have their own price. Ask yourself what the larger order saves you (less packing, fewer deliveries) and share part of it with the buyer, not all of it. Think carefully about credit: if a customer pays after 30 days, you carry the cost of that wait, and you may need to build it into the price or limit credit to trusted customers. Our post on setting MOQ and price tiers for wholesale buyers is aimed at suppliers but shows how tiers work.

Common pricing mistakes

Copying competitors without checking your own costs.
Confusing markup with margin.
Ignoring transport and loading costs.
Forgetting that some stock will be damaged, expired or unsold.
Giving discounts that wipe out your profit on an item.
Never updating prices when costs rise.
Selling on credit without a limit.

If you sell through chat apps as well as a shop, our guide on how to sell on WhatsApp Business shows how to display prices clearly. For small-shop planning, see our guides on starting a provision store and a phone accessories business.

Frequently asked questions

What is the difference between markup and margin? Markup is profit as a percentage of cost. Margin is profit as a percentage of the selling price. For the same sale, markup is the larger number.

What margin should I add when I resell products? There is no single right figure. It depends on your costs, how quickly the product sells and what customers will pay. Work from your own full cost per unit.

How do I price imported goods? Calculate landed cost first (purchase, freight, duties, clearing, local transport), then divide by units and add your margin.

How often should I change my prices? Whenever your costs change materially, and at least regularly if you buy goods affected by exchange rates.

Where can I see tiered pricing before I buy? Bulk listings at /browse show minimum order quantities and tiered pricing. We cannot promise any price. For payment, currency or fee questions, ask through live chat or /contact-us.

Next step

Take your ten best-selling items and recalculate each price from the full cost. Then compare supplier quotes: browse bulk listings at /browse and post a request at /request-quotation to see tiered pricing and minimum order quantities. Create a free account at /register. If you sell online, vendors sign up at /register/vendor. Knowing how to price products for resale means knowing your real cost first, and the rest is arithmetic.