Many businesses make their money by selling items that they produce or buy from a wholesaler onto customers for a higher price. They advantage for the customers is a range and choice of options that the customer could not find themselves.

One of the key things that the business has to do is price the items correctly to ensure that they make a profit on them, there are many methods that are used to price goods and we will discuss some of the advantages of each one.
The first thing is that a business will normally need to do is sell the item for more than what they paid for it. The money remaining from the sale after subtracting what you paid the supplier is called the "gross profit". This gross profit is then used to pay all your other expenses and then anything that is left after that is your "net profit". Having a large enough gross profit is important otherwise your business will not be profitable overall. This means calculating it correctly if very important.

The first thing required to calculate a sell price is to figure out the cost of the product that you are selling. If you are a reseller this is quite simple as it is the price you pay for it plus any shipping costs to get it to your store/warehouse. If you are a manufacturer of an item this is the cost directly associated with building that one item.
The following pricing methods are

Mark-up - This is taking the original cost of the item and adding a certain amount to it. This could be a percentage for example a 100 percent mark-up is to double the price. Or else you could add a mark-up of a fixed dollar amount saying that you mark-up items by only 10 dollars. Normally a percentage is used since if you start buying items at a higher price and still only mark up by a fixed dollar amount you will start to notice increased sales but your gross profit may stay the same due to the same number of sales.

Margin - This works very similarly but it is the amount remaining from the sale price. If something cost ten dollars but you sell it for twenty your margin is ten dollars or 50% of the twenty dollars. The margin percentage is quite often used since people can quickly figure out what their gross profit is from their sales total.

Things to consider when adjusting your prices.
Will people by more or less of you product if the price changes? Some products demand may change based on price such as food items, some change less such as car repairs. Will changing the price still make them shop with you but shop less compared to them going somewhere else.
How do you compare to everyone else? You do not have to be the cheapest seller to get customers, you can retain customers based on service and the quality of your product compared to competitors. If you are the cheapest seller and raising your prices mean you are still the cheapest seller that means it may be time to raise prices.

When changing prices for products remember that not everything has to be done at once. You can take a small section of your products and change the prices for them. You can see what the response is from your customers to these changes. They may not notice or if they do they do not care about the change. They may offer feedback on what they would rather pay for and if there is anything extra you can offer. It is about paying attention to what happens when you make changes and then responding to that feedback.

I hope this gives you some ideas about how to look at pricing your goods for sale, and gives you some options to try when looking at your prices when selling to your customers.