How do you calculate a wholesale price?
Divide your landed unit cost by one minus your target wholesale margin, then multiply by the retailer multiple to get the recommended retail price. Working from landed cost matters: freight and duty are part of the cost, and pricing off the purchase price alone erodes the margin.
Wholesale Price Calculator formula
Wholesale price = Landed cost / (1 - Margin%) Recommended retail = Wholesale price x Retailer multiple
Worked example: A landed cost of 10 at a 35% wholesale margin gives 15.38. At a 2x retailer multiple the shelf price is 30.77, a 50% margin for the retailer.
How this works in your browser
Wholesale price is derived from cost using your target margin applied as a margin on the selling price rather than a markup on cost, which is the distinction that keeps the resulting margin the one you actually asked for. The recommended retail price is then that wholesale figure marked up at the retail multiple you set, defaulting to the keystone convention of doubling. Showing both numbers together is the point of the tool, since a wholesale price that works for you and fails the retailer is not a viable price. Computed entirely in your browser.
Who uses Wholesale Price Calculator
Launching a wholesale range
Set trade prices that work for you and for your stockists.
Approaching retailers
Arrive with a price list and a defensible recommended retail price.
Reviewing after cost rises
See what a change in landed cost does to both prices.
Balancing direct and trade
Compare margins across your own channel and wholesale.
Frequently asked questions
What margin do retailers expect?
Commonly a keystone markup, meaning they double the wholesale price, giving them a 50% margin. Some sectors expect more. If your wholesale price does not leave room for that on top of a retail price the market will accept, the range will not get picked up regardless of how good it is.
How does wholesale differ from retail pricing?
Wholesale is sold in volume at a lower margin per unit, with lower selling costs and predictable orders. Retail carries a higher margin but also carries the marketing, returns and shelf space. Selling both direct and wholesale means accepting two different margins on the same product.
Should I sell direct at the same price as my stockists?
Undercutting your own stockists is the fastest way to lose them, and many wholesale agreements prohibit it outright. Match the recommended retail price on your own channel and take the extra margin as profit rather than passing it on.
What costs belong in the unit cost?
Landed cost: manufacturing, inbound freight, duty and any per-unit packaging. Leaving out freight and duty is the standard error and it is exactly the part that erodes a thin wholesale margin.
Are my costs stored?
No. Everything is calculated in your browser.