Wholesale Price Calculator — Free Wholesale Pricing Tool

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Wholesale Price Calculator

Calculate your wholesale price from retail price and margin targets. Compare DTC vs wholesale economics side-by-side.

Your DTC / full retail price

COGS including landed cost

Typical: 40-50% off retail

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Test whether retailers and their customers will buy at your wholesale price point before committing to bulk production.

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How Wholesale Pricing Works

Wholesale pricing gives retailers a discount off your retail price so they can mark it up and profit. The standard structure is simple: you set a retail price (RRP/MSRP), then offer wholesale buyers a percentage discount off that price.

The formula: Wholesale Price = Retail Price × (1 − Discount %)

For example, if your retail price is $50 and you offer 50% wholesale discount: $50 × 0.50 = $25 wholesale price. The retailer buys at $25 and sells at $50, giving them a 50% margin.

Standard Wholesale Discount Rates

Channel Typical Discount Notes
Independent retailers 40-50% Standard for most consumer products
Chain retailers / big box 50-60% Higher volume, deeper discount expected
Distributors 55-65% They take a cut before selling to retailers
Food service / HoReCa 40-55% Volume-dependent, often negotiated
Online marketplace (B2B) 30-45% Faire, Tundra, etc.

Keystone Pricing Explained

Keystone markup is the retail standard of doubling the wholesale price. If your wholesale price is $25, the keystone retail is $50. This gives the retailer exactly 50% margin.

Working backwards: if you want retailers to keystone your product, your wholesale price should be exactly half your target retail price. This is why a 50% wholesale discount is the most common structure.

Setting Your Wholesale Price: The Rules

  1. Start with your cost — Include all landed costs (manufacturing, shipping, duties, packaging)
  2. Ensure minimum 30% wholesale margin — Below this, wholesale isn't viable. 40-50% is healthy.
  3. Set retail at 2-2.5x wholesale — Gives retailers enough margin to stock your product
  4. Check competitive retail prices — Your retail price must make sense on the shelf
  5. Protect your DTC price — Wholesale price must leave room for your DTC channel to co-exist

Common Wholesale Pricing Mistakes

  1. Setting DTC price first, then discounting too deeply — If your DTC margin is 60% and you give 50% wholesale discount, your wholesale margin drops to just 20%
  2. Ignoring channel conflict — If wholesale retailers sell at lower prices than your DTC site, you cannibalise your best channel
  3. Forgetting distributor margins — Distributors take 15-25% on top of retailer discounts. Factor this into your pricing architecture.
  4. No minimum order quantity (MOQ) — Small orders have higher per-order costs. Set MOQs to protect margins.
  5. Same price for all channels — Volume tiers (10 units, 50 units, 100+ units) reward larger buyers while protecting small-order margins

Frequently Asked Questions

What's the difference between wholesale price and trade price?

They're the same thing. "Wholesale price" is more common in the US; "trade price" is used in the UK/Australia. Both refer to the price you charge B2B buyers (retailers, distributors) as opposed to end consumers.

Should my wholesale price be exactly 50% of retail?

50% (keystone) is a common benchmark but not a rule. Premium brands with strong demand can offer smaller discounts (35-40%). Commodity products in competitive categories may need 55-60% to get shelf space. Match to your category norms.

How do I handle MAP (Minimum Advertised Price)?

MAP is the lowest price retailers can advertise your product at (they can sell lower in-store but can't advertise below MAP). Set MAP at or near your DTC price to prevent channel conflict. Include MAP requirements in your wholesale agreement.

What margin do I need to make wholesale worthwhile?

Minimum 30% gross margin on wholesale orders. Below that, the operational costs of B2B (invoicing, bulk shipping, returns, sales reps) eat your profit. Ideally aim for 40-50%. If the math doesn't work, either raise your retail price or reduce COGS before entering wholesale.

How do volume tiers work?

Volume tiers offer deeper discounts for larger orders. Example: 12-47 units at 40% off, 48-95 units at 45% off, 96+ units at 50% off. This rewards commitment while protecting margins on small orders. Keep tier jumps meaningful (5% per tier is standard).

Can I sell wholesale and DTC at the same time?

Yes, most brands do both. The key is pricing architecture: your DTC price should be at or near the retail price your wholesale partners charge. This way both channels co-exist without undercutting each other. Use MAP agreements to enforce this.

What about platforms like Faire or Tundra?

B2B marketplaces like Faire charge 15-25% commission on top of your wholesale price. Factor this into your margins. If your wholesale margin is 40% and Faire takes 15%, your effective margin drops to 25%. Some brands set Faire prices slightly higher than direct wholesale to compensate.

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