Selling Price & Margin Optimizer
Find your minimum break-even price, recommended retail price, and premium pricing ladder with full margin analysis.
Enter your metrics below to simulate unit margins, max allowable ad spend, and break-even thresholds. All calculations update dynamically in real time.
How It Works & Mathematical Formulas
Setting prices in Cash On Delivery requires factoring in the silent costs of returned deliveries and advertising. This engine calculates your minimum survival price and ideal retail price based on your desired profit margin.
Total Real Cost per Delivered Order
Each delivered parcel absorbs the freight, return fees, and marketing of undelivered parcels.
Recommended Price at Target Margin
Calculates the retail price needed to secure your exact net margin percentage.
How to Use This Calculator Step-by-Step
Product Costs & Pricing
Enter your unit cost of goods (COGS), planned retail price, and packaging expenses.
Ad Spend & Confirmation
Input expected customer acquisition cost (CPA/CPL) and call-center order confirmation rate.
Courier Delivery & Returns
Configure your actual delivery success rate and courier forward and return (RTO) fees.
Review Net Margins
Analyze your real cash profit per delivered order and break-even thresholds before spending.
Product Pricing: 65 MAD Wholesale Item
You buy a gadget for 65 MAD. Courier outbound is 35 MAD, return fee is 15 MAD, lead CPA is 45 MAD, and return rate is 20% (80% delivery):
Common Pitfalls & Costly Mistakes
Pricing by multiplying wholesale cost by 2
In Western e-commerce 2x markup works. In COD with 20% returns and Facebook ads, 2x usually causes bankruptcy. You need 3.5x to 4x markup.
Frequently Asked Questions
What is a typical healthy markup in COD? ▼
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