Launch channels
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.
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.
| Channel | Price you receive | Costs you carry beyond unit cost | What to confirm before pricing |
|---|---|---|---|
| Retail | Wholesale price paid by the retailer | Freight to the retailer, any agreed allowances or chargebacks | The retailer’s margin requirement and terms, in writing |
| Direct-to-consumer (DTC) | Full retail price | Fulfillment, shipping, payment and platform fees, returns, marketing | Your cost to acquire a customer and ship an order |
| TV shopping | Price agreed with the TV retailer | Inventory in the volumes required, samples, on-air preparation | The channel’s buying terms and volume needs |
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.
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 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.
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
Published by Cydney Mar
