What margin do retailers expect?
It varies by industry and store. Many boutique retailers price at roughly double wholesale, known as keystone pricing, which is a 50% retailer margin. Ask each buyer what they need.
Wholesale Price Calculator
Find a wholesale price that covers your costs and still leaves retailers their margin.
Your numbers
Price from your own cost, or work back from the retail price a store will charge.
Materials, labor and packaging for one unit.
Add the margin a store expects to see a suggested retail price.
Result
Results update as you type.
Enter your values to see the result.
How to calculate a wholesale price
A wholesale price has to work for two businesses: it must cover your costs and profit, and it must leave the retailer enough room to resell at a price shoppers will pay. You can price from either end.
From your cost
Wholesale price = cost ÷ (1 − your margin ÷ 100)
From the retail price
Wholesale price = retail price × (1 − retailer margin ÷ 100)
Example: a product that costs you $8.00
With a 40% wholesale margin, sell to stores at $13.33 and keep $5.33 per unit. A retailer who wants a 50% margin would then price it at $26.66.
Working the other way: if the product should sell for $39.99 in stores and the retailer needs 50%, your wholesale price can be at most $20.00. That leaves you $12.00 per unit, a 60% margin.
Frequently asked questions
What should my wholesale margin be?
Enough to cover overhead that is not in your unit cost — such as samples, trade shows and payment terms — and still leave profit. Use the cost-plus calculator to build up your full unit cost first.
Should my own store match the retail price?
Usually yes. Selling direct for much less than your stockists undercuts them, so many brands keep their own price at the suggested retail price.
Is wholesale price the same as cost?
Not for you as the maker or distributor: your cost is what it takes to make or buy the unit, and the wholesale price is what you charge stores. For the retailer, your wholesale price becomes their cost.