Pricing imported products incorrectly is a hidden reason so many importers lose money — a deal can look profitable on paper yet end up in the red once every cost is accounted for. In this guide from MESAMA, we show you how to price your products after importing from China so you turn a real profit.
The Fatal Mistake: Pricing on the Factory Price Alone
Many importers set their price based on the factory cost of the goods and simply add a markup, ignoring shipping, customs duties, VAT, and other expenses. The result: an imaginary profit margin.
Calculate Your Landed Cost
The true cost of a single unit includes all of the following:
| Item | Note |
|---|---|
| Product price (FOB) | From the factory |
| International shipping | Spread across the number of units |
| Customs duties and VAT | Based on HS code classification |
| Customs clearance and local transport | Fees and charges |
| Packaging and storage | If applicable |
| Damage/return allowance | A safety buffer |
Landed cost per unit = (all the costs above) ÷ number of sellable units.
How Do You Set the Selling Price?
Once you know your landed cost per unit, add your target profit margin while taking into account:
- Competitor prices in the market.
- Perceived value of the product to the customer.
- Sales channel (retail, wholesale, online).
Common Pricing Strategies
- Cost-plus pricing: the simplest and safest approach.
- Market-based pricing: matching or undercutting the prevailing prices.
- Value-based pricing: based on the value the customer sees (best for premium products).
MESAMA's Tip
Always start by calculating an accurate landed cost before you set a price. Use the CBM calculator to estimate shipping, and check the customs guide to work out your duties. At MESAMA, we help you understand your true cost so you can price with confidence. Get in touch.