How to set minimum and maximum prices
Jul 1, 2025
Why Minimum and Maximum Prices Matter
For anyone reselling items—whether on eBay, Etsy, Facebook Marketplace, or your own shop—setting clear minimum and maximum prices is essential. Not only does it help you cover costs and avoid losses, but it also protects your reputation and keeps your sales process smooth. This guide offers straightforward steps for beginners to establish price boundaries, keep inventory in sync, assign basic team roles, track sales and fees, and manage shipping or pickup, all while leveraging a central system.
Step 1: Understand Your Costs
Before you can set any price limits, you need a clear picture of your expenses:
Acquisition cost: What did you pay for the item?
Marketplace fees: Each selling platform takes a cut. For example, eBay fees and Etsy fees vary.
Shipping and packaging: Include boxes, tape, shipping labels, and postage.
Labor or time: Even if you’re a solo seller, your time is valuable.
Use a spreadsheet or a simple calculator to total these costs for each item. This is your base cost, and your minimum price should never go below this amount—ideally, it should include a margin for profit.
Step 2: Research the Market
Look up what similar items are selling for on each platform. Pay attention to:
Completed listings and actual sale prices
Current competition—are there many similar items?
Seasonal trends or demand spikes
This helps you set a realistic maximum price (the most you can reasonably ask) and ensures your minimum isn't too low to compete.
Step 3: Choose Your Minimum and Maximum Prices
Minimum Price: Your base cost plus a reasonable profit. For beginners, a 10–30% markup is typical but adjust based on your item and demand.
Maximum Price: The highest price you see similar items actually selling for. Don't just go by listings—look for sold items.
Example: If your total cost is $20, you might set a minimum of $25 and a maximum of $40 if that’s the current market range.
Step 4: Use a Central System to Keep Prices and Inventory in Sync
When selling on multiple sites, it’s easy to lose track of what’s listed where and at what price. A central inventory system solves this by letting you:
Update prices in one place—changes sync everywhere
Track what’s sold or still available
Avoid double-selling or pricing mistakes
Beginner-friendly options include spreadsheet templates or dedicated tools. Gavelbase is a simple tool that connects to multiple marketplaces, letting you set price floors and ceilings, and keep inventory and sales data coordinated automatically. Other options include SellEdge or Inventora. Choose one that matches your volume and comfort level.
Step 5: Assign Basic Team Roles (If You Have Help)
If you work with family or a small team, clear roles prevent mistakes. Suggested roles:
Listing Manager: Enters and updates items, sets minimum/maximum prices
Inventory Checker: Confirms items are in stock and updates central system
Order Fulfiller: Packages and ships or schedules pickups
Bookkeeper: Tracks sales, fees, and profits
Even if you’re doing it all yourself, think of these as tasks to check off for each sale or listing.
Step 6: Track Sales and Fees
Keep a simple record of every sale, including:
Date and platform
Sale price
Fees paid
Shipping costs
Final profit
This helps you refine your minimum price over time. Most central systems (including Gavelbase) can export this data or show it in a dashboard. If you prefer manual methods, use a spreadsheet with columns for each detail.
Step 7: Handle Shipping or Pickup Cleanly
Shipping and pickup can eat into profits or create hassles. To keep things smooth:
Always include shipping costs in your price calculations
Use tracked shipping or reputable carriers
For local pickup, use neutral, safe locations and confirm each exchange
Update inventory in your central system the moment an item is shipped or picked up
Quick Checklist for Beginners
Calculate your true item cost
Research sold prices for similar items
Set a minimum (cost + profit) and maximum (market high) price
List items with these limits on each site
Keep all prices and inventory in sync using a central system
Track every sale, fee, and shipping charge
Assign roles or tasks—don’t skip steps
Final Tips
Review your pricing every month—markets change fast
Don’t chase the lowest price unless you must (protect your profit)
If items aren’t selling, adjust your maximum price, but never go below your minimum unless you’re clearing out old stock
Keep communication open with your team or helpers
Stay organized—central systems prevent costly mistakes
Setting smart minimum and maximum prices is about protecting your business and sanity as a reseller. With a few simple steps and the right tools, you can keep everything running smoothly—even as you scale up.