What is the difference between margin and markup?

Markup measures profit against cost; margin measures it against the selling price. A 30% markup is a real margin of 23%. Pick one number and use it consistently so you do not fool yourself.

Should I price all my products at the same rate?

No. Store cards have a known face value, so their margin is thin and the profit comes from repetition, while ID-based game top-ups carry a wider margin because the customer is buying service and speed rather than a known number.

What do I say when a customer tells me someone else is cheaper?

Ask how long they wait with that seller. A price war in digital products is unwinnable, and instant delivery with the name confirmed before deducting justifies a price difference to any customer who has been burned once.

Which costs do most resellers forget?

Deposit fees, currency spread, the share of orders that fail or go to the wrong place, and the value of your own time. If those are not in your price, you are paying them out of profit.

How to Price Your Digital Products Without Losing Money While Thinking You Are Winning

What kills new top-up stores is rarely a shortage of customers. It is pricing that looks profitable and is not. This guide covers the arithmetic you should know before you announce your first price.

Margin and markup are not the same thing

You bought at 90 and sold at 100. How much did you make? It depends which question you are asking:

Markup: profit over cost → 10 ÷ 90 = 11%.
Margin: profit over selling price → 10 ÷ 100 = 10%.

The difference looks trivial here, but it compounds quickly. Someone who says "I make 30%" meaning markup has a real margin of 23%. Decide which number you use and use it consistently — confusing the two is the first door to mispricing.

Your cost is not the purchase price alone

Most resellers count the wholesale price only, then wonder where the profit went. Your true cost includes:

The purchase price from your wholesale source.
Deposit and transfer fees when you fund your wallet — treat them as a percentage on every order.
Currency spread if you buy in dollars and sell in a local currency, which sometimes moves against you.
The cost of error: a small share of your orders will fail or be sent wrong. If you do not price it in, you pay it out of profit.
Your time. An hour spent answering customers at night has a price, and if you do not admit it you will burn out in three months.

Do not price everything at the same rate

This is the most common mistake. Products are not equal in how aware the customer is of their price:

Store cards (Google Play, Apple, PlayStation): the face value is known and compared instantly. Thin margin, profit from repetition.
ID-based game top-ups: the customer does not know the wholesale price and values speed and verification. A wider margin, justified by service.
Voice apps and large denominations: high volume and a customer who calculates precisely. A thinner percentage, but the largest absolute profit.

When do you compete on price, and when do you refuse?

A price war in digital products is a fight nobody wins: nothing separates you from your competitor except the number, and someone less experienced and worse at arithmetic will always go under you. Compete on speed, trust and presence — not on small change.

And when a customer says "so-and-so is cheaper", ask one question: "and how long do you wait with them?" Delivery in seconds with the name confirmed before deducting is worth a price difference to any customer who has been burned once.

Rules that protect your profit

Review your prices weekly — wholesale moves and will not wait for you to notice.
Do not price from memory. Write cost, price and margin into a sheet, however simple.
Budget an error rate on every product rather than discovering it at month end.
Raise prices calmly when wholesale rises. Being late means selling at a loss without knowing it.

To start from the foundations, read the digital cards business: the complete guide.