AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Price each piece from its full landed cost (purchase, shipping, duties, currency conversion and delivery), not its purchase price, then add the markup your margin target needs. Mark down on a schedule based on how fast a style sells, not on mood. Any "was/now" price must be true: Nigerian consumer law prohibits misleading price comparisons.
There is no official markup for fashion retail in Nigeria, and two boutiques on the same street can price the same style very differently. What separates a boutique that survives from one that does not is less the markup it picks than whether it knows its true cost, watches how fast stock sells, and clears slow pieces before they turn into dead money.
Start from landed cost
Landed cost is everything you paid to get a piece onto your rail or into your stockroom. For imported pieces, that includes the price abroad, the currency conversion at the rate you actually paid, shipping or cargo charges, customs duties, clearing, and local delivery. The inventory standard IAS 2 defines the cost of purchase in the same way: price plus import duties and non-recoverable taxes, transport and handling, less trade discounts.
Divide shared costs such as a cargo bill across the pieces in the shipment, by weight or by value, and do it the same way every time.
Markup and margin: know which one you mean
Markup is profit as a share of cost; margin is profit as a share of selling price. A 100% markup is a 50% margin. Confusing the two is a common way of underpricing.
Example: a dress has a landed cost of ₦18,000. At a 100% markup it sells for ₦36,000, and the margin is ₦18,000 ÷ ₦36,000 = 50%. If you need a 40% margin to cover rent, staff and Instagram adverts, the price is ₦18,000 ÷ (1 − 0.40) = ₦30,000.
Set your margin target from your costs, not from habit: add up monthly rent, salaries, data, adverts and packaging, estimate monthly sales, and work out the margin that covers them with something left over. Our guide to markup versus margin shows the arithmetic in full, and pricing imported goods when the naira moves covers re-pricing after a currency change.
Track sell-through, then mark down on a schedule
Sell-through is the share of a style you have sold in a given period. If you bought 20 pieces and sold 12 in eight weeks, sell-through is 60%. Measure it for every style, every fortnight.
Then use a markdown schedule rather than deciding piece by piece. The timings below are an example, to adjust for your stock and season:
| Age of style in stock | Sell-through so far | Example action |
|---|---|---|
| 0 to 6 weeks | Any | Full price; restyle photos if slow |
| 6 to 10 weeks | Below 50% | First markdown, for example 20% to 30% off |
| 10 to 16 weeks | Below 75% | Second markdown, down to around landed cost |
| Over 16 weeks | Any remaining | Clear: bundle, bulk sale, or write down |
Continuing the example: a 30% markdown on the ₦36,000 dress gives ₦25,200. The margin falls to (₦25,200 − ₦18,000) ÷ ₦25,200 = about 28.6%. A second markdown to 50% off brings the price to ₦18,000, which is landed cost. Below that, you are paying to clear the rail, which can still be right if the alternative is a piece that never sells.
Keep sale prices honest
Section 123 of the Federal Competition and Consumer Protection Act 2018 prohibits representations that are false, misleading or deceptive about price, including comparisons with earlier prices or the price goods have usually been sold at. In-store displays and packaging count. So "was ₦36,000, now ₦25,200" must refer to a price the piece really carried. Keep your price history in your records; it is your evidence if a comparison is ever questioned.
Dead stock
Dead stock is stock that has stopped selling at any reasonable price. It ties up cash and shelf space, and it hides how the boutique is really doing. For accounts, IAS 2 says inventory is carried at the lower of cost and net realisable value (what it will sell for, less costs to sell), written down item by item. PwC's tax summary notes that FIFO and average cost are accepted for inventory in Nigeria, but LIFO is not.
- Bundle slow pieces with fast sellers.
- Offer a clearance rail or a single "last pieces" post.
- Sell in bulk to another trader at or near cost.
- Learn from it: note which supplier, size range or colour ended up dead, and buy less of it next time.
Our guides to dead stock and setting a discount policy go further.
Re-pricing when costs change
When the naira moves or a supplier raises prices, the next shipment has a new landed cost. Price new stock from its own landed cost rather than averaging it with older pieces on the rail, and record both. Avoid raising the price of pieces already on display just because the next shipment costs more, unless you are prepared to explain it; customers who saw the old price in your catalogue notice. Keep a simple price history per style: date, price, reason for any change.
Where Pryme fits
If you buy stock abroad, a Pryme Business Account holds NGN, USD, GBP and EUR, and money stays in the currency it arrived in until you choose to convert with Swap, which shows the rate first and the fee on its own line before you approve. That makes the currency part of your landed cost a recorded number rather than a guess.
Questions people ask
What markup do boutiques use in Nigeria?
There is no official standard. Work out the margin that covers your rent, staff, adverts and other costs, then convert it into a price from each piece's landed cost.
When should a boutique start a sale?
Use sell-through, not the calendar alone. A style that has sold less than about half its quantity after six to ten weeks is a candidate for a first markdown in many shops.
Is it legal to show a "was" price on sale items?
Yes, if the earlier price is true. The FCCPA prohibits false or misleading price comparisons, including in shop displays.
What do I do with clothes that will not sell?
Bundle them, clear them on a sale rail, or sell in bulk near cost. In your accounts, write stock down to what it will realistically sell for.
Sources
- IAS 2 Inventories, IFRS Foundation · accessed Oct 2026
- Section 123 FCCPA 2018, LawGlobalHub · accessed Oct 2026
- Nigeria corporate income determination, PwC Worldwide Tax Summaries (reviewed 29 May 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.