Why cost plus a percentage is not enough
Many owners handle product pricing with one rule: take the purchase price and add a percentage. That works only while nothing unexpected happens in purchasing. In practice, delivery, paperwork, storage, damaged goods, commissions and taxes all sit between the supplier's invoice and the customer's price. Each one takes a bite out of your markup, and together they can take all of it.
A familiar story in Tashkent and the regions: a shop owner sees turnover rising, yet the account balance stays flat. The cause is rarely weak demand. The price was built from the number on the invoice, not from what the goods really cost once they reached the warehouse.
Landed cost: what the goods really cost you
Start by adding up everything you paid to get the product into your hands. This landed cost is the base for any markup.
Customs and certification rules depend on the product type and country of origin, and they change, so check them before you order rather than after the shipment arrives. If you pay a supplier in foreign currency but sell in sums, the exchange rate becomes part of the price too.
- supplier price, volume discounts and payment terms such as prepayment or deferred payment;
- transport, loading, unloading and insurance;
- for imports: duties, taxes, clearance and certification;
- currency conversion;
- the cost of finding suppliers, ordering samples and checking quality.
Storage, losses and selling costs
Next come costs on your side: warehouse rent, utilities, a storekeeper's salary. The longer an item sits, the more it costs you. Count losses separately: defects, damage, theft, mis-sorted goods and items nearing expiry.
Then the cost of selling: shop rent, staff, equipment, packaging, delivery to the customer, Click and Payme fees, marketplace commissions and taxes under your regime. Costs tied to one product go straight into its cost price. Shared costs should be spread by a clear rule, for example share of sales or floor space used. What matters is that the same rule applies across the whole range.
Markups depend on the role of each product
A single markup for every item is usually a mistake. Fast sellers that return cash quickly can carry a smaller markup. Perishable or fashion items carry more storage risk and may need a larger one. Unique products that shoppers cannot find elsewhere face less price comparison.
Think in roles. Well-known items that customers check across shops, such as smartphones or popular household goods, shape the impression of your whole store, so keep them close to market price. Margin often comes from accessories, cables, cases and less familiar products. Inside a category, a simple three-level ladder helps: a basic option for budget buyers, a mid option with the best value, and a premium one. The price gap between levels should be explained by real differences in the product.
Pricing by channel and watching competitors
The same item costs different amounts to sell in different places. On Uzum you add the platform commission and logistics. In a physical shop you carry rent and staff. Through a Telegram bot or Instagram you pay for a courier and manager time. Work out the price for each channel first, then decide whether to keep one price everywhere. If online and offline prices differ, be ready to explain why, and make sure the shelf tag always matches the till.
Track competitors on the key items shoppers actually compare, not the whole catalogue: nearby shops, marketplaces, OLX.uz. Compare warranty, delivery, availability and service as well as price. If you charge more, the customer should see what the extra buys.
Discounts, leftover stock and price reviews
Calculate a discount before you launch it. Check what price remains, whether it still covers costs, and how many extra sales you need for the promotion to pay off. Sales work well for clearing stock, attracting new buyers or launching a new line, but constant discounts teach customers to wait.
Unsold stock is frozen money, so planned end-of-season markdowns and bundling slow items are better than waiting. Starting a discount late usually demands a deeper one. Set a regular review schedule, and also revisit prices when the supplier's price, the exchange rate, delivery costs, demand or competitor prices change.
Common product pricing mistakes
The same errors repeat from shop to shop. If you want help turning this into a working price policy as part of a wider marketing strategy, the markdev team can go through your costs and assortment with you. Send us your task and we will look at it together.
- counting only the purchase price and ignoring logistics and duties;
- applying one markup to every product;
- ignoring competitors, or copying them on everything;
- leaving prices unchanged after currency or supplier price moves;
- holding dead stock instead of marking it down in time.
FAQ
Where should product pricing start?
With full cost: supplier price, delivery, customs charges for imports, storage, losses and selling costs. Only then add a markup.
Should every product have the same markup?
Usually not. Turnover speed, price sensitivity, uniqueness and storage risk all affect how large a markup each item can carry.
Should marketplace and shop prices match?
Not necessarily. Costs differ by channel, so calculate each one separately and then decide whether a single price makes sense.
How often should I review prices?
Set your own regular schedule, and review extra whenever supplier prices, exchange rates, delivery costs, demand or competitor prices change.
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