You spent weeks sourcing the right product. You negotiated with the supplier. You cleared customs, paid freight, and finally — your goods are in your hands.
Then comes the question that trips up more importers than any other part of the process:
How do I price this so I actually make money?
Price too high and customers walk. Price too low and you are working hard just to break even — or worse, operating at a loss without even knowing it. Getting your pricing right is the difference between an import business that builds wealth and one that just keeps you busy.
This guide breaks down the exact approach to pricing your imported products profitably — with a practical formula you can apply to any product, any order.
Why Most Importers Get Pricing Wrong
The most common mistake Nigerian importers make is pricing based on feeling rather than numbers. They see what competitors are charging, pick a number that feels competitive, and hope the margin works out.
It rarely does — because they have not accounted for every cost between the factory in China and the customer’s hands.
Profitable pricing starts with one foundational concept: your landed cost.
Step 1 — Know Your True Landed Cost
Your landed cost is the total amount it costs you to get one unit of a product to your location, ready to sell. It is not just the price the supplier quoted you.
Landed cost includes:
- Product cost — what you paid the supplier per unit
- Shipping cost — sea freight or air freight, divided across your total units
- Customs duty — Nigeria charges import duty based on product category (typically 5% to 35% of the CIF value)
- VAT — 7.5% applied on the customs value plus duty
- Clearing agent fees — typically ₦50,000 to ₦150,000 depending on the port and shipment size
- Last-mile delivery — moving goods from the port to your warehouse or store
- Inspection fees — if you used a quality inspection service
- Bank or transfer charges — the cost of sending money internationally
- BrandSquare service fee — if you used a sourcing agent (factor this in like any other cost)
The formula:
Landed Cost Per Unit = (Total Product Cost + All Shipping & Logistics Costs + All Duties & Taxes + All Other Fees) ÷ Total Units
Let us use a real example.
Worked Example: Pricing a Shipment of Wireless Earbuds
Imagine you import 500 units of wireless earbuds from China.
| Cost Item | Amount |
|---|---|
| Product cost (500 units × $4) | $2,000 |
| Sea freight (20kg shipment) | $180 |
| Customs duty (20% of CIF value) | $440 |
| Nigerian VAT (7.5%) | $196 |
| Clearing agent fee | ₦80,000 (~$53) |
| Last-mile delivery to Lagos | ₦30,000 (~$20) |
| Bank transfer charges | $25 |
| Total landed cost | ~$2,914 |
Landed cost per unit = $2,914 ÷ 500 = $5.83 per unit
At an exchange rate of ₦1,600/$1, that is roughly ₦9,330 per unit.
This is your floor. Every naira above this number is potential profit. Every naira below it is a loss.
How to Calculate Your Real Landed Cost When Importing from China
Step 2 — Add Your Operating Costs
Your landed cost covers what it took to get the product here. But running your business has its own costs — and they need to be built into your pricing too.
Operating costs to factor in:
- Storage / rent — if you warehouse goods before selling
- Packaging — custom bags, boxes, labels, tape
- Staff or labour — anyone helping you sort, pack, or sell
- Marketing and advertising — social media ads, influencer fees, data costs
- Platform fees — if you sell on Jumia, Konga, or Instagram, factor in their commissions
- Returns and losses — budget a small percentage (2–5%) for damaged or unsold units
Calculate your operating cost per unit by dividing your total monthly business overhead by the number of units you sell per month.
If your monthly overhead is ₦200,000 and you sell 200 units per month, your operating cost per unit is ₦1,000.
Updated cost per unit = Landed cost + Operating cost per unit
Using our earbuds example: ₦9,330 + ₦1,000 = ₦10,330 true cost per unit
Step 3 — Decide Your Target Profit Margin
Now that you know your true cost, you need to decide how much profit you want to make on each unit. This is expressed as a profit margin — the percentage of the selling price that is profit.
Common margin benchmarks for Nigerian importers:
| Business Type | Suggested Minimum Margin |
|---|---|
| Reseller / open market | 25% – 40% |
| Online retailer (Instagram, WhatsApp) | 40% – 60% |
| Branded / private label products | 60% – 100%+ |
| Niche or premium products | 80% – 150%+ |
The higher your differentiation — your branding, your customer service, your exclusivity — the more margin you can command.
Margin vs Markup — Know the Difference
These two terms confuse a lot of business owners.
- Markup is calculated on cost: if your cost is ₦10,000 and you add 50% markup, you sell at ₦15,000
- Margin is calculated on selling price: ₦5,000 profit on a ₦15,000 sale = 33% margin
Neither is wrong — just make sure you are consistent in which one you use when planning your finances.
Step 4 — Stress-Test Against the Market
Once you have your cost-based price, compare it to what the market is actually charging. This is your market sanity check.
How to do it:
- Search for your product on Jumia, Konga, and Instagram shops
- Note the price range competitors are selling at
- Identify where your price sits within that range
Three scenarios and what they mean:
Your price is lower than competitors — Good news: you have room to either increase your margin or use price as a competitive advantage. Do not automatically drop to the lowest price. Compete on value first.
Your price is in the middle of the market — This is usually the sweet spot. You are not the cheapest (which attracts the wrong customers) and not the most expensive (which requires strong brand justification).
Your price is higher than most competitors — You need to either reduce costs, accept a lower margin, or invest in differentiating your product enough to justify the premium. Private labelling, better packaging, and warranty offers can all support a higher price point.
Private Labeling From China — How to Build Your Own Brand Without a Factory
Step 5 — Build In a Buffer for Currency Fluctuation
This is the step most Nigerian importers skip — and it costs them badly.
The naira has lost significant value against the dollar over the past few years. If you price your products today based on an exchange rate of ₦1,600/$1 and by the time your next shipment arrives it is ₦1,750/$1, your cost just increased by nearly 10% — without you doing anything differently.
How to protect yourself:
- Add a 5–10% currency buffer into your pricing, especially for products you reorder regularly
- Review and update your prices every quarter, or whenever the exchange rate shifts more than 5%
- Avoid locking in large bulk orders at a price that only works at today’s rate
Treating your pricing as a static number is one of the most dangerous things an importer can do in the Nigerian market.
Step 6 — Your Final Pricing Formula
Bringing it all together, here is the complete pricing formula:
Selling Price = (Landed Cost Per Unit + Operating Cost Per Unit + Currency Buffer) ÷ (1 − Target Margin %)
Using our earbuds example with a 50% target margin and 7% currency buffer:
- True cost per unit: ₦10,330
- Currency buffer (7%): ₦723
- Adjusted cost: ₦11,053
- Target margin: 50%
- Selling price = ₦11,053 ÷ 0.50 = ₦22,106 → round up to ₦22,500
At ₦22,500, you are making approximately ₦11,447 profit per unit — a healthy margin that covers unexpected costs and still rewards your effort.
Common Pricing Mistakes to Avoid
Pricing based on what you paid the supplier only — This ignores freight, duty, and all other costs and is the fastest route to hidden losses.
Copying competitor prices without knowing their cost structure — Your competitor may be sourcing larger quantities, using a different shipping method, or operating at a loss to gain market share. Their price is not your price.
Never reviewing your prices — Costs change. The naira moves. Your expenses grow. A price that worked 12 months ago may be eating your profit today.
Giving discounts without calculating the impact — A 20% discount on a product with a 30% margin leaves you with only 10% margin. Know your floor before you negotiate.
The Real Competitive Advantage Is Your Cost Structure
The importers who win long-term are not always the ones with the best marketing or the largest following. They are the ones who have their numbers right — who know their exact cost per unit, protect their margins, and price with confidence.
That starts with sourcing products at the right price from verified suppliers. When you overpay at the source, no amount of clever pricing can recover it.
This is why BrandSquare focuses on helping African business owners source quality products at competitive factory prices — so that by the time goods reach you, your margin is protected before you even set a price.
Quick Reference: Import Pricing Checklist
- Landed cost per unit calculated — all fees included
- Operating cost per unit added
- Currency fluctuation buffer built in
- Target profit margin set (not guessed)
- Market price range researched
- Final price stress-tested against competitors
- Pricing reviewed and scheduled for quarterly update
Start Importing at the Right Cost
Your profit margin is won or lost at the sourcing stage. BrandSquare helps Nigerian and African business owners import quality products from verified Chinese suppliers — at prices that leave real room for profit.
Submit Your Sourcing Request Today →
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- Inline image 2: A side-by-side table visual comparing markup vs margin
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