How the price is worked out

The calculator uses absorption pricing: it spreads your overhead and admin across your units, adds that to the unit cost, then applies your profit target.

The margin method is what most wholesalers use, because it locks in a fixed share of every sale as profit. The markup method is simpler and common in retail. Both are built in.

What a wholesale price actually is

A wholesale price is what you charge when selling in bulk to retailers or distributors, rather than to shoppers one at a time. It sits below retail because volume selling carries lower per-unit cost, and because your buyer, not you, takes on the retail overhead and marketing.

• Sell in volume, mark up less. Wholesale trades a lower per-unit margin for larger order sizes.
• Your costs set the floor. Supplier price, labor, and overhead decide how low you can profitably go.
• Leave the retailer room. Retail typically lands at 1.66× wholesale or higher, so your buyer can mark up and still sell competitively.

Pricing your wholesale products well

• Count every cost. Freight, packaging, payment fees, and returns quietly erode margin. Fold them into overhead or admin.
• Protect the retailer’s margin. If your price leaves your buyer no room to profit, they will not reorder.
• Offer volume tiers. A lower per-unit price at higher quantities rewards bigger orders while protecting your margin.
• Recheck when costs move. Rerun the numbers whenever your landed cost shifts.

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Frequently asked questions