How to Price Products: Reseller Margin Guide
Co-founder, Markaz ·
Ask a struggling reseller what went wrong and the answer is rarely "nobody wanted the product." It's almost always pricing — margins so thin that one price change or one returned parcel wiped out a week of profit. Pricing is a formula, not a guess. Here it is.
The door-price formula
What your customer actually pays at the door is:
Product price + delivery + COD fee + your profit = door price
In practice on Markaz, most COD orders carry around PKR 165 delivery plus a PKR 50 cash-handling fee (prepaid orders skip the 50). If a product costs PKR 800 wholesale and you want PKR 250 profit, your customer pays roughly PKR 1,265 at the door. Quote THAT number when a customer asks "total kitna?" — surprises at the door are the number-one cause of refused parcels.
Margin rules that keep you safe
- Never price below your all-in cost. Obvious, yet it happens constantly when resellers forget delivery and COD fees.
- Keep at least 15% or PKR 150 margin — wholesale prices move, and a thin margin can silently turn negative between the day you list and the day you sell. Always re-check the live Markaz price before placing an order.
- Use charm prices. PKR 999 outsells PKR 1,000; PKR 1,499 outsells PKR 1,520. Round your final price down to a 9-ending number and take the margin difference from a slightly higher base.
- Price the category, not the product. A phone accessory competes with Daraz listings; an unstitched suit competes with the local bazaar. Check what your customer sees elsewhere before setting yours.
Let the tools do the arithmetic
Every Markaz product page shows a suggested resell price, and if you run your own website, the Export to My Store tool shows the complete breakdown per product — Markaz price, real delivery + COD fee, your price, door total and your earnings — while you set margins in bulk. You'll find it via the dropshipping portal.
Pricing is half of profit; product choice is the other half. Pair this guide with the best products to dropship in Pakistan and the Markaz reselling app to put both halves together.
