In this guide
Start with what it cost you
Round to a price that sells
Most shops set prices by feel. Then the month ends and the money is not there.
Here is a simple way to price, so every sale leaves you something.
01
Start with what it cost you
Add up everything you paid to get the item into your shop. That is the price, plus transport and any duty.
cost = price paid + transport + duty
Black satin dress: $10.00 + $2.00 transport = $12.00 cost.
Markup is what you add on top of your cost. Many clothing shops roughly double it.
price = cost × 2, then round up
$12.00 × 2 = $24.00. Round up to $25.00.
Margin is the part of the price you keep. It tells you if the price is worth it.
margin = (price − cost) ÷ price
($25.00 − $12.00) ÷ $25.00 = 52%. You keep $13.00.
Item
Cost
Price
You keep
Margin
Black satin dress
$12.00
$25.00
$13.00
52%
Cream ribbed top
$5.00
$12.00
$7.00
58%
Blue straight jeans
$8.00
$18.00
$10.00
56%
You keep on each sale
Black satin dress
Cost $12.00 · sells $25.00
$13.00
Cream ribbed top
Cost $5.00 · sells $12.00
$7.00
Blue straight jeans
Cost $8.00 · sells $18.00
$10.00
Margin this month: 53%
Drapli shows what you keep on every item you sell.
04
Round to a price that sells
Pick prices people expect, like $12, $18 or $25. Odd cents make people stop and think.
Check slow stock every week. If an item hasn't sold in a month, mark it down.
Use that money for the things that do sell.
The short version
Cost is everything you paid to get the item into your shop
Markup is what you add. Margin is what you keep
Check slow stock every week and mark it down
See your profit on every sale
Drapli works out cost, margin and profit for you.
Start 7 days free