Wholesale Pricing Calculator
Calculate wholesale pricing, retail price (MSRP), wholesale unit margins, and total retail markup ratios. Free, private, and client-side.
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Developing a Sustainable Wholesale Pricing Strategy
Wholesale pricing is the cost set for retail buyers ordering in bulk volumes. Setting standard pricing formulas ensures that both manufacturers and downstream retail partners earn target profit margins.
Pricing Calculations
To determine wholesale prices using margin goals:
$$\text{Suggested Wholesale Price} = \frac{\text{Product Cost}}{1 - \left(\frac{\text{Desired Wholesale Margin \%}}{100}\right)}$$ $$\text{Wholesale Profit Amount} = \text{Suggested Wholesale Price} - \text{Product Cost}$$To calculate the suggested retail price (MSRP) using markup goals:
$$\text{Suggested Retail Price (MSRP)} = \text{Suggested Wholesale Price} \times \left(1 + \frac{\text{Retail Markup \%}}{100}\right)$$Frequently Asked Questions (FAQ)
What is keystoning in retail pricing?
Keystoning is the practice of doubling the wholesale cost (a 100% markup) to set the retail selling price. This is standard across brick-and-mortar retail stores.
How does wholesale margin differ from retail margin?
Wholesale margin is the profit percentage earned by the brand owner when selling in bulk to retailers. Retail margin is the percentage earned by the retailer when selling to final end consumers.
Why do brands establish a Minimum Advertised Price (MAP)?
Brands set MAP policies to prevent retailers from selling their products below a specified price point, preserving brand value and preventing race-to-the-bottom pricing competition.
What wholesale margin should a brand target?
Most physical product brands target a wholesale gross margin of 30% to 50% on their manufacturing landed costs to remain retail viable.