wholesale price calculator.
retail → wholesale with tiered margins
- wholesale price
- $20
- retail / msrp price
- $30
- retailer's margin
- 33.33%
- your margin on wholesale
- 40.00%
> worked example
Unit cost is $12.00. With a desired retail margin of 60% the MSRP comes out at $30.00. Setting a wholesale margin of 40% produces a wholesale price of $20.00. The retailer buys at $20.00 and sells at $30.00, earning a 33.33% retailer margin. You earn 40.00% on the wholesale transaction.
takeaway, The retailer's margin and your wholesale margin both come from the same unit cost, set one without modelling the other and you'll squeeze someone out of the deal.
> when operators reach for this
- Brand founders setting opening wholesale terms for a retail buyer meeting and needing both prices in one place.
- Merchandisers building a tiered trade price list (wholesale, distributor, direct) and validating that each tier still clears a margin floor.
- Retail buyers reviewing a vendor's proposed wholesale price against their standard 60% retail margin to decide if the range is commercially viable.
- DTC brands moving into wholesale for the first time, stress-testing whether the channel can survive at standard 50% keystone pricing.
- Finance teams preparing a P&L by channel, comparing gross margin on DTC revenue vs wholesale revenue from the same SKU.
> the calculation
- retail / msrp price
unit cost ÷ (1 − retail margin % ÷ 100)Cost-plus approach, retail margin % is applied to the retail price, not the cost. - wholesale price
unit cost ÷ (1 − wholesale margin % ÷ 100) - retailer's margin %
(retail price − wholesale price) ÷ retail price × 100 - your margin on wholesale %
(wholesale price − unit cost) ÷ wholesale price × 100