Pricing for the U.S. Market: How to Build a Structure That Works Across Wholesalers, Brokers, and Retailers

For international CPG brands looking to enter or expand in the U.S. market, one of the most underestimated (and most dangerous) blind spots is pricing.

It’s easy to believe that if your product is priced well in your local market—and if your COGS are relatively low—you’re ready to compete in the U.S. But in reality, the U.S. retail chain adds multiple layers that can destroy your margins if not planned for from the start.

This article will walk you through the core pricing structure you need to understand, break down the margins expected by each player in the chain, and explain how to set your pricing strategy to protect your business, attract buyers, and drive long-term growth.

Why pricing can make or break your U.S. market strategy

Many brands approach the U.S. market with a “what’s left” mindset:

“I have my cost and a target price—let’s see how much is left for everyone else.”

But that’s not how this market works. In the U.S., pricing needs to be built in reverse. You need to start from the shelf price (what the consumer sees), and work backward through the chain to determine:

  • If your margins are viable
  • If you can meet everyone’s expectations (retailers, brokers, distributors)
  • If your product will be priced competitively on shelf

Step-by-step breakdown: How the pricing chain works in the U.S.

Let’s start with a simplified version of the pricing chain. Suppose your product’s MSRP (Manufacturer’s Suggested Retail Price) is $5.00. Here’s what typically happens to that number:

  1. Retailer margin: 30–40%
    • Expected retail margin varies by category, channel, and store type.
    • Let’s assume 35%: that means the retailer expects to pay $3.25 for your product.
  2. Wholesaler margin: 10–15%
    • If the retailer buys through a wholesaler, that wholesaler needs their margin too.
    • With 12% margin: your product must be priced to the wholesaler at $2.90.
  3. Broker fee: 5–8% of wholesale price
    • Brokers typically charge a commission on sales.
    • At 7%, you’re now receiving $2.70 per unit.
  4. Trade spend & discounts: 10–15%
    • Retailers expect promotional support: BOGO, TPRs (temporary price reductions), display incentives.
    • If you allocate 12% for this, your real average revenue per unit drops to $2.38.

Now ask yourself: can you profitably produce, import, and support that product at $2.38 per unit?

If not, you have two choices:
✅ Redesign your cost structure
✅ Rebuild your go-to-market strategy

Key pricing principles for CPG brands in the U.S.

1. Always price for the channel you’re targeting

  • DTC and Amazon can tolerate higher price points.
  • Conventional retail (especially value chains) is highly price sensitive.
  • Premium retail (like Whole Foods or Erewhon) allows for margin, but only if your value proposition justifies it.

🔹 Example: Many international snack brands succeed in Sprouts or Whole Foods at $4.99—but fail in conventional chains like ShopRite or Kroger where that price is too high for the category.

2. Build your hero SKU with U.S. pricing realities in mind

Sometimes the issue isn’t your brand—it’s the specific product format or size you’re trying to launch.

Ask yourself:

  • Can we build a retail hero with better margin structure?
  • Would adjusting pack size or ingredients improve pricing viability?
  • Can we create a product that’s optimized for velocity AND margin?

🔹 Example: A frozen Latin American brand we worked with couldn’t make margin on their core empanada SKUs, so we helped them develop a smaller “snack size” 3-pack that allowed for a $5.49 retail with better unit economics. That SKU became their U.S. retail lead.

3. Treat promotional spend as part of your pricing structure

Retailers in the U.S. expect regular, aggressive promotions—especially during launch periods.

If you don’t budget for it, you either:

  • Can’t support the promotion when it matters, or
  • You do it anyway and hurt your margins.

🔹 Best practice: Create a “net net” pricing model that includes your base price and your promotional burn. That’s your real revenue per unit.

4. Don’t forget hidden costs in logistics and compliance

Your landed cost doesn’t stop at freight. It includes:

  • Customs, duties, and port fees
  • 3PL or warehouse costs
  • Distributor fees
  • Regulatory compliance costs (e.g. relabeling, certifications)

If your pricing model doesn’t account for these, your margin is already gone before you start selling.

Conclusion: Price with precision or risk your entire launch

Pricing isn’t just a finance issue—it’s a strategic pillar of market entry. Brands that succeed in the U.S. are those who:
✅ Understand the economics of the full retail chain
✅ Build products and portfolios around viable price points
✅ Support pricing with the right promotional and trade strategies

At Group MCC, we help CPG brands analyze, structure, and validate their pricing models to ensure they’re not just exciting for consumers—but viable for the U.S. market.

If you’re planning your launch and want to ensure your product is priced for long-term success, contact us to learn how our consulting services can help you get it right from the start.