Direct answer
Price a custom Mahjong set from the bottom up. Start with your full landed cost per set, decide the gross margin you need at wholesale, then set a suggested retail price (MSRP) that gives retailers their margin and still fits what shoppers will pay. Check the result for every channel you sell through, because direct-to-consumer, wholesale and marketplace sales carry different costs. If the price shoppers will accept does not leave enough margin, change the product specification or the channel, not just the price.
Key takeaways
- Landed cost is the starting point, not the factory price.
- Margin and markup are different. Use margin for decisions.
- Retailers need their own margin. Your wholesale price is not your retail price.
- Each channel has different costs. Check DTC, wholesale and marketplaces separately.
- Test the price against the market. Compare with similar sets your customers can buy.
Step 1: Calculate landed cost per set
Landed cost includes everything it takes to get a sellable set into your warehouse:
- Product cost from the factory, including accessories and packaging
- One-time setup costs divided over the order quantity
- Freight and insurance
- Duties, customs brokerage and fees
- Receiving and storage
See US landed cost for custom Mahjong imports and how much a custom set costs.
Step 2: Understand margin vs markup
- Gross margin = (Price − Cost) ÷ Price
- Markup = (Price − Cost) ÷ Cost
Example with simple numbers: if a set costs 40 and sells for 100, the margin is 60% and the markup is 150%. Mixing the two leads to underpricing. Use margin when comparing channels.
Step 3: Set the wholesale price
Decide the gross margin your brand needs at wholesale to cover marketing, overhead, samples, damaged stock and profit.
Wholesale price = Landed cost ÷ (1 − target wholesale margin)
Example: a landed cost of 40 with a target margin of 50% gives a wholesale price of 80.
Step 4: Set MSRP with the retailer's margin
Many gift and home retailers use keystone pricing, roughly doubling the wholesale price, which gives the retailer about a 50% margin. Practices vary, so check what your target stores expect.
MSRP = Wholesale price ÷ (1 − retailer margin)
With a wholesale price of 80 and a 50% retailer margin, MSRP is 160.
Our boutique retailer's guide explains the store's side of this calculation.
Step 5: Check each channel
| Channel | Revenue per set | Costs to subtract |
|---|---|---|
| Direct to consumer (your website) | Retail price | Payment fees, shipping subsidy, packaging, returns, ads |
| Wholesale to stores | Wholesale price | Shipping to store, damage allowance |
| Wholesale marketplace | Wholesale price | Marketplace fee, shipping to store |
| Consumer marketplace | Retail price | Marketplace fees, fulfillment fees, advertising |
Keep your MSRP consistent across channels. If you sell DTC far below MSRP, stores will not want to carry your sets.
Step 6: Test against the market
Before you commit:
- Compare similar sets in materials, tile construction, accessories and packaging
- Note what is included at each price
- Ask a few target retailers whether your MSRP fits their shelf
If your price is too high for the market, adjust the product: simpler packaging, fewer custom elements, or a different accessory bundle. See MOQ negotiation for ways to reduce setup cost.
A worked example (illustrative numbers only)
| Line | Amount |
|---|---|
| Landed cost per set | 40 |
| Target wholesale margin | 50% |
| Wholesale price | 80 |
| Retailer margin | 50% |
| MSRP | 160 |
| DTC sale at MSRP, minus fees and shipping of 20 | 140 net, margin on landed cost 71% |
These numbers are for showing the method. Use your own costs.
Pricing mistakes to avoid
- Pricing from factory cost instead of landed cost
- Confusing markup with margin
- Setting MSRP without the retailer's margin
- Discounting DTC below MSRP and undercutting stores
- Forgetting returns, replacements and samples
Pricing checklist
- [ ] Landed cost calculated per set
- [ ] Target wholesale margin set
- [ ] Wholesale price and MSRP calculated
- [ ] Each channel checked after its costs
- [ ] MSRP compared with similar sets
- [ ] Consistent MSRP across channels
FAQ
What is keystone pricing?
A retail convention of setting the retail price at about double the wholesale price, giving the retailer roughly a 50% margin.
What margin should a Mahjong brand aim for?
It depends on your costs and channels. Calculate what you need to cover marketing, overhead and returns, then test against the market.
Should my website price match store prices?
Generally yes. Consistent MSRP keeps retailers willing to stock your sets.
What if my MSRP is too high for shoppers?
Change the specification or bundle, or focus on channels with lower costs, rather than cutting margin to zero.
Next step
If your target retail price needs a different specification, send Lucky Mahjong your target MSRP, quantities and must-have features. We will suggest where the specification can change to fit your price.