Raw materials, supplies, packaging per unit.
Please enter a valid material cost (≥ 0).
Your time valued at an hourly rate per unit.
Please enter a valid labour cost (≥ 0).
At least one cost must be greater than zero.
Base = Materials + Labour
Wholesale = Base × 2 → 50% margin
Retail/MSRP = Base × 4 → 75% margin
Transitioning from direct-to-consumer (D2C) to wholesale (B2B) can exponentially grow your business, but it requires a completely different pricing strategy. The Wholesale Pricing Calculator helps you build a sustainable tiered pricing model that ensures you make a profit when selling in bulk, while still giving retailers enough room to make their own profit.
Retailers typically expect a 'Keystone' margin, meaning they want to buy your product at 50% of the retail price so they can double it when selling to their customers. This calculator takes your production cost and applies your desired wholesale markup to generate a safe wholesale price. It then calculates the suggested retail price (MSRP) required to keep the retailer happy. By visualizing the entire supply chain margin, you avoid the common trap of pricing your retail goods too low, which makes future wholesale expansion mathematically impossible.
Keystone pricing is a standard retail industry rule of thumb where a product's price is doubled at each step of the supply chain. For example, if it costs $10 to make, you wholesale it for $20, and the retailer sells it for $40. This ensures a 50% gross margin for both you and the retailer.
Generally, no. Your direct-to-consumer price should match the Manufacturer's Suggested Retail Price (MSRP) you give to your wholesale partners. If you consistently undercut your retailers on your own site, they will eventually drop your product.
If you cannot support standard wholesale margins, you have three options: lower your production costs by ordering materials in larger quantities, raise your MSRP (if the market will bear it), or stick exclusively to a direct-to-consumer model where you keep the entire margin.