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Product Costing DeskContact Cydney Mar

Launch channels

Pricing a product for retail, DTC, and TV shopping

Last updated: Published by Cydney Mar

The same product needs a different cost and margin plan for each launch path, because retail, direct-to-consumer, and TV shopping each take their share of the price in a different place.

Product Costing Desk covers all three because Cydney Mar, who publishes it, has built product for all three: $300M+ in global product sales across retail, TV, and direct-to-consumer, including 15+ years selling her own collections on QVC in 8 countries and more than 800 hours of live television.

Which launch path should a founder cost for: retail, DTC, or TV?

Cost for every channel you might realistically use, because a price that works in one can lose money in another. Retail suits products that need shelf reach and can carry a retailer's margin. DTC suits founders who can fund marketing and want to keep more of each sale. TV shopping suits products that demonstrate well on camera and can be made in volume. Many brands combine them.

How cost and margin differ by channel

Product Costing Desk channel cost comparison
ChannelPrice you receiveCosts you carry beyond unit costWhat to confirm before pricing
RetailWholesale price paid by the retailerFreight to the retailer, any agreed allowances or chargebacksThe retailer’s margin requirement and terms, in writing
Direct-to-consumer (DTC)Full retail priceFulfillment, shipping, payment and platform fees, returns, marketingYour cost to acquire a customer and ship an order
TV shoppingPrice agreed with the TV retailerInventory in the volumes required, samples, on-air preparationThe channel’s buying terms and volume needs

Costing for each launch path

Retail: work back from the shelf

Start with the shelf price shoppers will pay, subtract the retailer's margin to find your wholesale price, then check that wholesale still covers your landed cost and your own margin. As an illustration only: if a buyer told you they need a 50% margin on a $40 shelf price, your wholesale price would be $20. Ask each buyer for their actual terms.

DTC: price for the whole order

Selling direct means keeping the full retail price, so gross margin looks higher. But fulfillment, shipping, payment fees, returns, and the marketing that brings each customer in all come out of it. Add those per order to your unit cost before judging whether a DTC price works.

TV shopping: price for volume

TV shopping can sell large quantities in a short time, so production capacity and consistent quality matter as much as price. Each channel sets its own buying terms. Cost your product against those terms before you pitch, and make sure your supplier can deliver the volume.

A launch strategy that keeps every channel open

The most flexible first price is one with enough margin that a retailer's share would not wipe it out. If you launch DTC with a price set from a thin margin, adding retail later can force a choice between raising your price or losing money on wholesale orders.

Run the calculator at the price you would receive in each channel, compare the margins with the published benchmarks, and revisit the numbers whenever supplier, freight, or channel terms change. Launch and scale is the final stage of Cydney Mar's Concept-to-Reality Pathway, after cost and margins and production readiness are settled.

Run your own numbers in the product costing calculator

How do I price a product for retail stores?
Start with the shelf price customers will pay, work back to the wholesale price the retailer pays you, then check that the wholesale price still covers your landed cost and your own margin. Retailers set their own margin requirements, so ask each buyer for terms in writing before you fix your wholesale price.
How is pricing for direct-to-consumer different?
Selling direct to consumers lets you keep the full retail price, but you take on costs a retailer would otherwise carry: fulfillment, shipping, payment and platform fees, returns, and the marketing needed to bring each customer to you. Your gross margin looks higher than in retail, but those costs come out of it.
Can I sell my product on TV shopping channels?
Yes, TV shopping is a real launch channel for products that demonstrate well on camera. Cydney Mar sold her own collections on QVC for 15+ years in 8 countries, with more than 800 hours of live television. Each TV channel sets its own buying terms, so cost your product against those terms before you pitch.
Which launch path is best: retail, DTC, or TV?
It depends on your product, cash, and audience, which is why this site covers all three. Retail gives reach but takes a share of the shelf price. Direct-to-consumer keeps more of each sale but needs marketing spend. TV suits products that demonstrate well and can be produced in volume. Many brands use more than one.
Should I calculate margin on the retail price or the wholesale price?
Calculate it on the price you actually receive. If a retailer buys from you, your margin comes from the wholesale price, and the retailer earns its own margin between wholesale and shelf price. If you sell direct to consumers, you keep the full retail price but pay for fulfillment, platform fees, and customer acquisition.
What markup should a new product start with?
Online Labels says many businesses start in the 30% to 50% markup range to cover costs while staying competitive, and that markup may rise to 80%, 100%, or even 200% as demand grows. Note that a 30% to 50% markup is only a 23.1% to 33.3% margin, which may not leave room for a retailer.

Published by Cydney Mar