How to set retail prices: from cost price to storefront

The logic behind setting retail prices on Everspring: the formula, the multiplier approach, when to follow the RRP, and the mistakes that quietly eat margin.

Written By Bas den Hoed

You know the wholesale price; you know what your customer pays. The question is how to set the retail price in between so you actually make money. This article walks through the logic, the most common mark-up approach, and the mistakes that quietly eat margin.

Start with the formula

Every retail price you set has to cover four things:

Retail price = Wholesale + Shipping + VAT (where it applies) + Your margin

Skip any one of these and you find out the hard way at the end of the month. Shipping is the silent killer — on heavy or oversize products it can be a third of your total cost. For a full breakdown of every cost component, see Cost components explained: base price, pick & pack, shipping, VAT and MRRP.

A worked example

Take a smart-shipping product with these prices on its detail page:

  • Base price: €12.82

  • Pick & pack: €7.78

  • Shipping (NL): €6.32

  • Cost price (Total with shipping): €26.92

You sell it at €59.95 on your storefront to a Dutch consumer (21% VAT applies):

  • Retail price (incl. VAT): €59.95

  • VAT collected (21%): €10.40

  • Net retail revenue: €49.55

  • Your cost: €26.92

  • Margin on this order: €22.63 (~46% of net revenue)

The crucial number is cost price — base + pick & pack + shipping combined. If you compare your retail price only against the base price (€12.82), you'd think margin is huge; in reality logistics eats most of it. Always work from cost price.

If the same customer adds a second smart-shipping product from the same supplier that fits in the same box (Mix & Match), pick & pack and shipping get recalculated per order — usually shrinking, which adds directly to your margin. See Combine products and maximize margin with Mix & Match.

The most common approach: a multiplier

The simplest way to set retail prices in bulk is to apply a multiplier to the wholesale price. A multiplier of 1.8× on a €10 wholesale product gives an €18 retail price; 2.0× gives €20; and so on.

The right multiplier depends on your category, your shipping profile, and where the supplier's RRP sits. Many resellers start by following the supplier's RRP and adjusting from there as they see real margins land on actual orders.

When to follow the RRP and when to deviate

The Recommended Retail Price (RRP) is a suggestion based on what the supplier sees working in the market.

  • Follow the RRP when you're new to a supplier, or when you want to compete on something other than price (service, content, bundles).

  • Sell above the RRP when your shop adds clear value the suggestion doesn't account for: premium curation, expert content, gift packaging, faster perceived service.

  • Sell below the RRP only with a reason: clearance, an entry-product loss leader to drive Mix & Match orders, or a deliberate price-fight strategy. Don't undercut by default — it's the fastest way to a thin-margin business.

Check your margin per order in practice

The price you set is one number; the actual margin shows up on the order detail page on Everspring after the order is placed. Get into the habit of opening a few orders per week and checking:

  • Did shipping land where you expected, or did it spike (oversize parcel, distant destination)?

  • Did VAT play out as you assumed (B2C destination-country VAT under OSS, B2B reverse-charged)?

  • Is the residual margin in line with your target?

If a product consistently underperforms, change its price — don't wait for a quarterly review.

Common mistakes that quietly eat margin

  • Pricing against base price instead of cost price. Always include pick & pack and shipping in your math. Logistics often makes up a third or more of your true cost.

  • Confusing B2B and B2C VAT. If you charge VAT on a B2B order with a valid VAT number, you're keeping money you shouldn't. If you forget VAT on a B2C cross-border order, you're paying it out of margin at quarter-end.

  • Using one price approach for the whole catalogue. A single multiplier across every product means you over-price low-cost items and under-price expensive ones relative to what the market will bear.

  • Forgetting to re-check after a wholesale price change. Suppliers can update wholesale prices; the integration re-syncs but your margin assumptions don't.

  • Not pricing for Mix & Match. Single-product margin is one number; combined-order margin is much higher. Build at least one bundle deal per supplier — see Combine products and maximize margin with Mix & Match for the tactics.

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