Wholesale Price Calculator
Set a wholesale price that protects your margin and a retail price that leaves room for your stockists.
- Suggested retail price
- $40.00
- Your profit per unit
- $10.00
- Retailer profit per unit
- $20.00
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How to use the wholesale price calculator
- Enter your cost per unit, ideally your landed cost.
- Enter the margin you want on wholesale sales and the margin your retailers expect.
- Read your wholesale price and suggested retail price, plus the profit each side makes.
Wholesale pricing formula
Both margins must be below 100%. Retailer margins of around 50% (keystone pricing) are common, but they vary by industry.
Example
A product costs 10. With a 50% wholesale margin, the wholesale price is 20. If retailers expect a 50% margin, the suggested retail price is 40. You make 10 per unit and the retailer makes 20.
Wholesale vs retail pricing
Wholesale prices are lower because stockists buy in volume and need their own margin. Selling direct at the same retail price as your stockists, rather than undercutting them, protects those relationships.
What margin do retailers expect?
Many boutiques and gift shops expect about 50%, which means doubling your wholesale price. Big-box retailers and distributors may need more, and some categories like groceries work on less. Ask your stockists before you set prices.
Frequently asked questions
How do I calculate a wholesale price?
Divide your cost by 1 minus your target margin. A 10 cost with a 40% margin gives 10 ÷ 0.6 = 16.67.
What is keystone pricing?
Setting the retail price at double the wholesale price, which gives the retailer a 50% margin.
What is a suggested retail price?
The price you recommend stockists sell at, also called RRP or MSRP. It keeps pricing consistent across shops.
Should I use landed cost as my cost?
Yes. Include freight, duty and fees so your wholesale margin is real.
What if the retail price is too high for the market?
Lower costs, accept a smaller wholesale margin, or check whether the product suits a different channel.
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