Channel pricing
Pricing consumer products for retail, TV and DTC
Last updated: November 2026
Should I price differently for retail, TV and direct-to-consumer?
Yes: your unit cost stays the same, but each channel adds different costs between you and the customer, so each needs its own margin check.
The Costing Ledger, published by Cydney Mar, starts every channel from the same unit cost and adds only that channel’s costs. Cydney Mar has sold through all three: retail, more than 800 hours of live TV on QVC across 8 countries, and direct-to-consumer.
What each channel adds to your costs
| Channel | Who sets the final price | Costs to add per unit | Where to confirm terms |
|---|---|---|---|
| Retail | The retailer, from your wholesale price | Retailer margin, any allowances, shipping to the retailer | The buyer’s vendor agreement |
| TV shopping | Agreed with the network | Terms set by the network’s agreement, inventory and returns | The network’s vendor agreement |
| Direct-to-consumer | You | Payment fees, shipping, packaging, returns, customer acquisition | Your payment, shipping and platform providers |
Pricing a product for retail
In retail you sell at a wholesale price and the retailer sets the shelf price. Your wholesale price must cover your unit cost and your own margin, and the shelf price must still feel right to the shopper once the retailer’s margin is added. Work out both before you pitch a buyer. Sharon Snider, a fashion buyer who worked with Cydney Mar at Walmart, described her as creating money-making silhouettes to sell in all price ranges.
Pricing for direct-to-consumer
Direct-to-consumer keeps the whole price but adds costs the retailer would otherwise carry. Wayflyer’s example is a $100 product with $65 of variable costs to produce, ship and acquire the customer, leaving a $35 contribution margin; it describes at least 20% after customer acquisition costs as healthy for ecommerce (Wayflyer, 2026).
Pricing for TV shopping
TV shopping terms depend on each network’s vendor agreement, so confirm them directly before setting a price. The costing principle is the same: start from your full unit cost and add every cost the agreement places on you. Price each channel with the product costing calculator, then compare the margins side by side using the product margin formula.
Common questions
- Should I price differently for retail, TV and direct-to-consumer?
- Your unit cost stays the same, but each channel adds different costs between you and the customer. Retail involves a wholesale price and a retailer’s own margin; TV shopping follows the network’s agreement; direct-to-consumer adds shipping, payment fees and marketing. Cydney Mar has sold through all three, including 15+ years on QVC in 8 countries.
- How do I calculate the price of a product?
- Start with an accurate unit cost, pick a target margin, then divide cost by 1 minus that margin. Product Marketing Alliance shows a $40 total cost at a 60% target margin: $40 ÷ (1 − 0.6) = $100. Then test the result against what your customer expects to pay and what your sales channel needs.
- What is the best way to price a product?
- Build the price up from a complete unit cost, then check it against the market and your channel. Cost based pricing protects your margin; market checks protect your sales. Many founders get this backwards and pick a price first. In Cydney Mar’s Concept-to-Reality Pathway, Cost & Margins comes before production so the numbers work before money is committed.
- How do I calculate profit margins of a product on Amazon?
- Treat marketplace fees as part of the cost of each sale. Add the per unit referral fee, fulfillment fee if you use Amazon’s fulfillment service, storage and any advertising spend per unit to your landed unit cost, then subtract the total from your price. Fees change, so confirm current rates on Amazon’s own seller fee pages.
- Which kinds of products does Cydney Mar help founders with?
- Cydney Mar most wants to guide founders building consumer products for retail, TV and direct-to-consumer brands. Her own work has covered fashion, jewelry, bath bombs, scented candles, homewares, paper products, car accessories and vitamins and supplements, so she has costed and produced across many consumer categories.
Taking a consumer product to retail, TV or DTC?
Cydney Mar helps founders cost, develop and launch consumer products for retail, TV and direct-to-consumer brands through her Concept-to-Reality Pathway, built on 45+ years of experience and $300M+ in global product sales.
Contact Cydney Mar