For bag, luggage and leather goods shops
Price bags and leather goods with returns and markdowns counted
Bags are bought in, repaired and returned. Add the returns and the end-of-season sale to your price and keep the margin you planned.
Quick answer: how should bag, luggage and leather goods shops price a product?
Add every cost, then the fees that take a share of the price, then choose your margin. For leather tote bag that works out at $102.56, leaving $49.23 profit. Skip a cost and the profit shrinks without you noticing.
Check your best seller in two minutes
Take the product you sell most. If its price was set by adding a mark-up to the buy-in price and you have never counted returns and repairs allowance or markdown allowance, card fees and monthly costs, it may earn less than you think. Some items may even lose money. You will not see it in your till, only in the end-of-month result.
The mark-up trap, worked through
Marking up only the buy-in price by 48% gives a price of $56.24. After the other costs and the fees taken from that price, the sale leaves $8.89, not the $49.23 you planned. The same costs priced properly give $102.56.
Illustration with the example costs below. Your numbers will differ.
Where bag, luggage and leather goods shops usually lose money
Returns and repairs
Add an allowance so a broken zip does not cost you the profit.
End-of-season sales
See how deep a markdown can go before a bag loses money.
Bulky luggage
Add freight per unit for large cases.
Example: Leather tote bag
These costs go in. The price comes out of the same engine the app uses.
- Buy-in price$38.00
- Inbound freight$1.60
- Dust bag and tag$0.50
- Card terminal fee2.9% of price
- Returns and repairs allowance4% of price
- Markdown allowance6% of price
- Profit you want48% margin
Sell it for
$102.56
Profit per sale $49.23 on a total cost of $53.33.
What bag, luggage and leather goods shops see in the app
Real screens. Your own costs and products go in, the same kind of answers come out.
A ready cost list
Pick bag, luggage and leather goods shops and the usual cost lines appear. You fill in the amounts.
The exact price
Fees that depend on the price are solved exactly, so the profit you ask for is the profit you get.
Products that lose money
Check a whole price list at once and see which items run thin or below cost.
Already set up for bag, luggage and leather goods shops
Choose this business type in the calculator and these cost lines appear. You only fill in the amounts.
- Buy-in price
- Inbound freight
- Dust bag and tag
- Zip, strap or hardware repair
- Protective stuffing and tissue
- Card terminal fee
- Returns and repairs allowance
- Markdown allowance
- Loyalty discount allowance
- Rent (monthly)
- Staff wages (monthly)
- Insurance (monthly)
- Ads and listings (monthly)
- Display stands (monthly)
- Repair tools (monthly)
What bag, luggage and leather goods shops get with CostCal Pro
The pricing maths is free. Paid plans add bulk tools and store connections.
Exact selling price
FreeEnter the buy-in price, other costs and fees, choose a margin, and get the price that keeps it.
Catalog check
FreeUpload a product export and see which products lose money or run on a thin margin.
Discount simulator
FreeSee the largest discount that still leaves a profit before you run a sale.
Break-even
FreeAdd monthly costs and see how many sales cover them.
Branded PDF report
FreeSend a clear cost and price breakdown to a customer or partner.
CSV import and typical costs
StarterBring in many products at once and start from ready cost templates.
Store connection
StarterLink calculations to products in your online store by SKU.
Weekly below-cost email
PremiumGet an email when a store product is selling below cost.
Apply prices to your store
PremiumPush approved prices to a connected WooCommerce store.
See plans and prices, all features or a sample report.
Questions bag, luggage and leather goods shops ask about pricing
How do I price leather tote bag?
Add every cost (buy-in price, inbound freight, dust bag and tag, card terminal fee, returns and repairs allowance, markdown allowance), then choose the profit margin you want. With these example costs and a 48% margin, leather tote bag should sell for $102.56, which leaves $49.23 profit on a total cost of $53.33. Your own costs will differ, so enter yours in the calculator.
What is the formula for a selling price that keeps your margin?
Price = fixed costs divided by (1 minus the percentage fees minus your margin). Here the fixed costs are $40.10, the percentage fees are 12.9% of the price and the margin is 48%. Percentage fees must be taken from the selling price, not from the cost, which is why a simple mark-up on cost usually leaves less profit than planned.
What costs do bag, luggage and leather goods shops often forget?
The easiest to miss are returns and repairs allowance, markdown allowance, loyalty discount allowance, your own time, and monthly costs such as rent, staff wages, insurance. Each one is a row in the Bag / luggage / leather goods shop preset, so you only fill in the amounts.
How do I know if a product is losing money?
Compare the selling price with the total cost, including the share of the price taken by fees. If the price is lower than that total, the product loses money. Catalog check does this for a whole product export and marks every item that loses money or has a thin margin.
Can I price handmade leather work?
Yes. Add your own time as a cost line, as the handmade makers page explains.
Can I find items below cost?
Upload a CSV in Catalog check.
Is the CostCal Pro calculator free for bag, luggage and leather goods shops?
Yes. The Free plan never expires and needs no card. It includes the exact price calculation, 5 saved calculations, 5 PDF reports and a catalog check of up to 50 products. Paid plans start at $49 a year and add more saved calculations, CSV import, store connection and API keys.
Last reviewed 2026-11-11. Example figures are illustrations, not advice.
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