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How to Price Inventory for Profit

A repeatable pricing formula covering cost basis, fees, sell-through, and when to discount.

Start with true landed cost

Landed cost = lot price + freight or fuel + supplies + storage share + your processing time. Divide by the number of sellable units, not total units.

The working formula

Target price = landed unit cost ÷ (1 − target margin − fee rate). For a $6 unit cost, a 40% margin target, and 10% fees, the target price is about $12.

Anchor against real comparables

Check three sold comparables at similar condition and quantity — sold, not asking. Asking prices tell you what didn't sell.

Discount on a schedule

Set your price, then reduce by 10% every 14 days until it moves. A written schedule prevents emotional pricing and keeps your capital cycling.

Bundle to raise average order value

Slow single units often move instantly as a case or mixed lot. Bundling also reduces your handling time per dollar earned.

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