Business
Wholesale Price Calculator
Price a wholesale offer from unit cost, then see a suggested retail if the retailer needs a margin too.
Setting wholesale and suggested retail
You need enough wholesale margin to cover your overheads; the retailer needs enough to run a shop or site. Chain both margins rather than guessing a round retail number. Map and VAT are commercial choices — this tool only does the arithmetic between cost, wholesale and retail. See retail price, markup vs margin and gross margin. Set your exit wholesale with reverse margin thinking, then let the retailer apply their own margin. If retailers demand a deeper cut, recalculate your floor before you agree. Not legal or pricing advice. Export wholesale may need Incoterms and local distributor margins stacked beyond a simple UK retail hop. Marketing development funds and coop advertising sometimes sit beside margin in retailer negotiations — track them so ‘net net’ stays visible. Revisit the chain when commodity costs move more than a few percent. Export wholesale may need Incoterms and local distributor margins stacked beyond a simple UK retail hop. Marketing development funds and coop advertising sometimes sit beside margin in retailer negotiations — track them so net-net stays visible. Revisit the chain when commodity costs move more than a few percent in a single season.
Worked example
Your cost £8. You need 35% margin at wholesale → wholesale ≈ 8 ÷ 0.65 ≈ £12.31. Retailer wants 40% margin on wholesale → retail ≈ 12.31 ÷ 0.60 ≈ £20.52. If the market only bears £18.99 VAT-inclusive, work backwards — someone in the chain gives up margin or cost must fall.
Limits and assumptions
Ignores volume rebates, marketing support and payment terms. MAP and selective distribution rules are legal topics outside the calculator. Not contract drafting.
Frequently asked questions
How do wholesale and retail margins relate?
Wholesale price must leave you margin on cost; retail price must leave the retailer margin on wholesale. Both need to fit the final ticket customers will pay.
Should recommended retail price include VAT?
State clearly whether RRP is VAT-inclusive. UK consumer prices usually are.
What if retailers demand a deeper cut?
Recalculate your wholesale floor. If it no longer covers your overheads, renegotiate cost or walk away.
Can I use markup language with buyers?
Yes — convert with markup vs margin so both sides mean the same percentage.
How do distributor tiers fit?
Insert another margin hop between you and retail, and ensure the final ticket still clears the market.