thread Re: How Are You Structuring Pricing to Protect Margins? in Retail & eCommerce

How Are You Structuring Pricing to Protect Margins?

sacredheart926 — Wed, 18 Feb 2026 19:26:19 GMT

For brick-and-mortar retail businesses, how are you structuring pricing to protect margins once you include product cost, shipping, and processing fees? Have you found a markup percentage that consistently works? Would love to hear some thoughts!

Re: How Are You Structuring Pricing to Protect Margins?

DinaLRosenberg — Wed, 18 Feb 2026 23:19:16 GMT

Hi there!

We won't stock anything that is less than "keystone" - (doubling our money). However we are constantly on the look out for products we can take better numbers on. Some products are already labeled with MSRP so when we can, we shop markets. Most major wholesalers have markets around the big gift shows like NYNow & Atlanta- usually they'll offer 50% + 2 or 3%. That extra % is great for processing fees.

Re: shipping to you- you gotta do whatever you can to get free shipping. Check out the Faire online wholesale marketplace- they have many wholesalers that offer free shipping.

If you can't find free freight-- you need to amortize that in (ie. 10 pieces cost $10 to ship- you add $1 to the wholesale price and then double it).

Re: How Are You Structuring Pricing to Protect Margins?

homeprogreen — Thu, 19 Feb 2026 03:07:49 GMT

Same pretty much. I run the numbers shooting for 67-68% if I don’t think I can get at least 60% on a fast turnaround then it’s not coming in the door

Re: How Are You Structuring Pricing to Protect Margins?

sacredheart926 — Thu, 19 Feb 2026 17:21:20 GMT

I have found the struggle of these manufactures selling directly to the public which then puts us in a tough spot. As well as tariffs that they are passing on to us.

Re: How Are You Structuring Pricing to Protect Margins?

ehflower — Thu, 19 Feb 2026 19:38:16 GMT

We have been increasing our product line to Made in the U.S.A. Fortunately, that is getting easier over the years and with the Country's 250th Birthday this year we feel it will be imperative to give these items rock star billing in the store and on line. But we are running very tight on inventory, trying to focus on problem solving products.

Often we will ask a lot of questions and see if we can get more money for it's perceived value.

Re: How Are You Structuring Pricing to Protect Margins?

sacredheart926 — Fri, 20 Feb 2026 14:41:14 GMT

I try my best to keep products that are made in the USA!

Re: How Are You Structuring Pricing to Protect Margins?

ehflower — Fri, 20 Feb 2026 18:22:31 GMT

Manufacturers selling directly to consumers have certainly become more common. On the surface, it seems like a smart move. But it also means they’re now handling all the service questions, expectations, and follow-up that small businesses have traditionally managed. Over time, they may find that working with individual consumers is more demanding than anticipated, and this shift could prove to be cyclical.

If manufacturers build additional margin into direct sales, it may only increase price shopping. Interestingly, I’ve often found that when products I carry are featured on Amazon or even sold directly by the manufacturer, they’re sometimes priced higher than what I offer in-store. In addition, lead times can be longer, customers may be required to purchase multiples, and shipping costs are often higher.

Dropshippers may serve as a bridge between manufacturers and consumers, but it’s an extremely competitive space with tight margins and operational headaches. As more questionable dropshipper sites appear and consumers experience poor service, the appeal of the lowest price may begin to fade. After all, the old saying still holds true — you get what you pay for.

Re: How Are You Structuring Pricing to Protect Margins?

sacredheart926 — Fri, 20 Feb 2026 20:41:53 GMT

Being the only brick-and-mortar store in our area, I truly feel that customers appreciate having a place they can physically come into. People enjoy being able to see products in person, ask questions, and receive genuine, one-on-one customer service. It creates a more personal experience that you just can’t replicate online. We’ve found that many customers value the relationships and trust that come from being able to walk through the door and be taken care of face-to-face.

Re: How Are You Structuring Pricing to Protect Margins?

DinaLRosenberg — Sun, 22 Feb 2026 20:00:34 GMT

There are a couple of items we've paid tariffs on directly and we pass that cost onto our customer.

We sell a TON of books and we sell them MSRP. We always do what we can to get books on special and we never pay freight...

Obviously Amazon sells books at a better price to us- but they don't have our expertise!

Re: How Are You Structuring Pricing to Protect Margins?

DinaLRosenberg — Sun, 22 Feb 2026 20:01:32 GMT

I agree.. customers want to interact- they want expertise and recommendations.. which we're happy to provide.

Re: How Are You Structuring Pricing to Protect Margins?

TCSlaguna — Tue, 24 Feb 2026 22:33:44 GMT

We just have to increase prices if necessary. It's hard to navigate when things change daily. Having a good relationship with your vendors is always a plus.

Re: How Are You Structuring Pricing to Protect Margins?

JUYBoutique20 — Sat, 07 Mar 2026 21:36:09 GMT

When I first went into business, I followed Emily Benson and she always said never price your product for less than 64% margin. There are some exceptions I'm sure, but I've always stuck with that when pricing.

Re: How Are You Structuring Pricing to Protect Margins?

doc_choc — Sun, 08 Mar 2026 11:46:30 GMT

To be honest we are just taking the hit on the margins at the moment, riding one storm after another, but at some point we will have to get our retail margin back up as its killing the wholesale margins. Our customers have a certain expectation of what our products should cost and it is difficult to be competitive with the mass market companies hammering down their prices to keep them inline with what they were 3-4 years ago. Reality is their strategy will most likely hurt them more long term the cogs is the cogs, shrinkflation and product specification changes to maintain margin and price point is not a good thing and you can't keep doing this forever!

Re: How Are You Structuring Pricing to Protect Margins?

JoeTend — Sun, 08 Mar 2026 16:20:23 GMT

We've consistently applied our desired margin (varies by category) to the flat product cost, then consider shipping fees/other fees. So, for most categories we often bump the price up above the calculated price to account for shipping fees (we don't add the fees at the beginning and then apply margin calcs because then we'd be making profit off the customer on the shipping and that doesn't feel good). I've found that using Faire for whatever I can order there is fantastic because with their Insider program, you get free shipping on many of their vendors (the program shakes up the participating vendors regularly). As a caveat to my first point, when we have very heavy things, adding the shipping fees to the price often makes the item way out of whack price-wise, so we do what we can. Protecting margin is the only way we can survive in a city like ours!

Re: How Are You Structuring Pricing to Protect Margins?

AMPdUPNails — Mon, 09 Mar 2026 13:56:18 GMT

I have add a 3% increase to all products to help cover cost. I do offer a 3% discount for cash customers also. I think this incentivizes customers and also helps cover some of my extra overhead.

Re: How Are You Structuring Pricing to Protect Margins?

sacredheart926 — Mon, 09 Mar 2026 18:01:14 GMT

Yes! and it’s become increasingly difficult. Wholesale margins that used to be about 50% are now closer to 30–40%, and retailers are often forced to compete with their own wholesalers who are selling directly to consumers.

Re: How Are You Structuring Pricing to Protect Margins?

JUYBoutique20 — Mon, 09 Mar 2026 20:19:12 GMT

What's the cost to join the insiders program?

Re: How Are You Structuring Pricing to Protect Margins?

Fetched-Up — Mon, 09 Mar 2026 20:25:12 GMT

I pay $19.99/month.

Re: How Are You Structuring Pricing to Protect Margins?

JUYBoutique20 — Thu, 12 Mar 2026 02:05:09 GMT

Thanks. I'm gonna look into it. I started using Faire a short while ago and I love the platform.

Re: How Are You Structuring Pricing to Protect Margins?

VanKalkerFarms — Sun, 15 Mar 2026 21:36:23 GMT

We generally run on a Tick-Tock cycle where we adjust about half our retail offering every year. Then the next year, the other half. Now once in a while, there needs to be an off-season adjustment. And sometimes, due to other factors like finding lower supply cost or automation/labor savings, we can skip an adjustment. I no longer fight, nor have I for 15+ years, to be the cheapest. We try and offer a better experience overall than dirt cheap. Paved parking lots, nice big shopping carts, nice tables, etc. Those may not sound like upscale, but in the garden center world there are many that still have gravel parking lots, old red flyer type wagons, plants on the ground or on cinderblocks.