Field guidesPart 5 · Master Inventory5.3

How to price your inventory

7 MIN READ·6 STEPS·PART 5

Start from landed cost, set a target margin by category and grade, check it against what the item actually sells for locally, and build in an automatic markdown schedule by age.

Pricing is two numbers meeting: what the unit cost you, and what the market will pay this week. Ignore either one and you get stuck inventory or thin margin.

A markdown schedule is part of the price. Deciding it at purchase time is how you avoid deciding it emotionally in month four.

01

Price against landed cost

Never against invoice cost. Freight and refurbishment are real.

02

Set targets by grade

Different target margins for light, moderate and heavy cosmetic damage.

03

Check the local market

What comparable units actually closed at nearby, not what is listed.

04

Set a markdown clock

For example: 10% at 30 days, 20% at 60, clearance at 90. Write it down before you buy.

05

Track margin by channel

Fees, delivery and returns differ by channel and can invert your ranking.

06

Review monthly against aging

Aging tells you where pricing is wrong faster than any other report.

Example

A $160 landed unit priced at $340 is a 53% margin. At 60 days, 20% off is $272, still 41%, and it is gone.
COMMON MISTAKES
  • Holding for the original price because of what you paid.
  • One markup rule for every category and grade.
  • Ignoring channel fees when comparing margin.
When you're here

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