Wholesale Price Calculator

Wholesale Pricing Strategy

Wholesale pricing determines the price at which you sell products to retailers, distributors, or other resellers. Getting wholesale pricing right is critical: set it too high and retailers cannot make adequate margins; set it too low and you erode your own profitability.

Key Pricing Concepts

• Keystone markup — A retail pricing strategy where the retailer doubles the wholesale price. If your wholesale price is $25, the keystone retail price is $50.
• MAP (Minimum Advertised Price) — The lowest price a retailer can advertise your product for. MAP protects your brand value and prevents a race to the bottom.
• MOQ (Minimum Order Quantity) — The smallest number of units a buyer must purchase. MOQs help you maintain efficiency and cover order processing costs.

The Wholesale Pricing Formula

Wholesale Price = Cost of Goods / (1 - Desired Margin %)

For a product that costs $12.50 to make with a desired 50% margin, the wholesale price would be $12.50 / (1 - 0.50) = $25.00. The retailer then applies their markup (typically 2x-2.5x) to arrive at the retail price.

Volume Discounts

Offering tiered pricing based on order volume incentivizes larger orders and rewards your best accounts. Typical discount tiers range from 5% for moderate volumes to 15-20% for the largest orders. Ensure discounted prices still maintain adequate margins.

Validating Your Pricing

Always check that your wholesale price allows retailers to achieve keystone (or better) margins at a retail price that is competitive in the market. If the math does not work, you may need to reduce your cost of goods or accept a lower wholesale margin.