Build a wholesale price that supports both supplier and retailer
The wholesale price calculator helps turn unit cost, supplier margin, retailer margin, and target retail price into a workable channel price. It is useful for evaluating whether a product can support wholesale distribution before committing to volume.
Formula
Worked example
A product with a $12 complete unit cost and a 40% supplier margin requires a $20 wholesale price. If a retailer also needs a 50% margin, the implied retail price is $40 before tax and channel-specific adjustments.
Use complete landed cost rather than factory cost
Include manufacturing, inbound freight, duties, inspection, packaging, labeling, royalties, and other direct costs needed to make a unit saleable.
Volume discounts should reflect genuine cost or strategic benefits. Recalculate margin at each quantity tier instead of applying an arbitrary percentage reduction.
Leave enough room for the retailer
Retailers may need margin for staffing, rent, fulfillment, promotions, markdowns, returns, and unsold inventory. A wholesale price that consumes most of the retail value can be difficult to place.
Test the implied retail price against comparable products and customer demand. If the price is unrealistic, redesign cost, pack size, minimum order, positioning, or channel strategy.
Wholesale pricing checklist
- Calculate complete landed unit cost.
- Set supplier and retailer margin targets separately.
- Test discounts and minimum quantities by tier.
- Compare the implied retail price with the market.
Last reviewed September 8, 2026. This calculator provides an estimate for planning and education. Verify current rates, rules, and account-specific terms with the relevant official source.