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Wholesale pricing & terms

Wholesale Price Calculator: Build One in a Sheet

By Martin Mecar, founderAugust 13, 20267 min read

A wholesale price calculator is not software. It is nine columns in a spreadsheet that take your landed cost and your shelf price and tell you, per item, whether a wholesale channel is possible and what the number should be.

Build it once and run every product through it in an afternoon. The value is not the arithmetic, which is trivial, but the fact that you do it for all twenty items instead of the three you feel confident about, and that the two or three losers show up before they end up on a printed line sheet.

What the sheet has to answer

Four questions, per item.

What does one sellable unit actually cost you, landed and finished. What will a shop charge for it. What is left for you at a wholesale price that leaves the shop its normal margin. And does that remainder survive freight, a marketplace commission and a volume tier.

If your current pricing lives in your head or in a quote you sent someone in March, you cannot answer the fourth one, which is the one that decides whether the channel is worth running.

The columns

Use a serum as the worked example: thirty-eight dollars on your own store, glass bottle with a pump, cases of six.

A — Item. Name and variant. One row per sellable unit, never per product family.

B — Landed cost. Everything to get one finished unit onto your shelf: ingredients or components, the bottle, the pump, the carton, the label, the outer wrap, your contract manufacturer's fill fee, inbound freight, duty, and a small breakage allowance. For the serum, call it nine dollars eighty.

C — Retail price. What it sells for on a shelf, which is the price the market accepts rather than the price you would like. Thirty-eight dollars.

D — Wholesale price. Start at half of C. Nineteen dollars.

E — Unit margin. D minus B. Nine dollars twenty.

F — Case pack. Six.

G — Case value. D times F. A hundred and fourteen dollars.

H — Case contribution. E times F, minus the freight you expect to pay on a case. Fifty-five dollars twenty minus eleven dollars of freight is forty-four twenty.

I — Verdict. A formula that flags anything where E is below a floor you set, or where H is below the amount that makes an order worth packing.

That is the whole calculator. Nine columns, one row per item, no macros.

The formulas worth writing down

Keep them simple enough to audit at a glance.

Wholesale from retail: D = C / 2. Start here, then adjust for category. Apparel and jewellery often need a deeper gap; fast-moving food often runs narrower.

Retail from cost, as a sanity check in the other direction: C = B × 4. If your landed cost is nine eighty, a shelf price near thirty-nine dollars is the natural landing spot, which is a useful check on whether your current retail price is set by the market or by wishful thinking.

Unit margin: E = D − B.

Case contribution: H = (E × F) − freight.

Margin as a share of the wholesale price: E / D. You want this comfortably above half. On the serum it is nine twenty over nineteen, which is just under half, and that is the first thing the sheet should make you look at.

Why the derivation matters rather than a single ratio is worked through in how to calculate wholesale price.

The four checks that make it useful

A calculator that only multiplies is a receipt. Add four flags and it becomes a decision tool.

Does landed cost sit at or under a third of retail? Nine eighty against thirty-eight is a shade over a quarter, which is healthy. Anything above a third of retail and the wholesale channel is tight before you have paid for anything else.

Does the case cover the cost of existing? Picking, packing, the carton, the label, the freight and the admin on one order. If a single case leaves less than about thirty dollars, your case pack is too small or your price is too low. That interaction is the point of case pack.

Does the price survive a commission? If you sell on a marketplace, knock a chunk off the case value and look again. An item that only works at full margin will lose money the moment it meets a platform.

Does it survive the deepest tier you plan to publish? Put your top volume-tier price into a second wholesale column and recompute. If contribution at the deep tier is lower than at the base tier, the tier is wrong, not the item. Setting those rungs honestly is covered in bulk pricing.

Run the whole range at once, not one item at a time

This is the part brands skip, and it is where the money is.

Paste every item in as a row. Sort by unit margin ascending. The top of that list is your problem set, and it is almost never what you expected: usually a small accessory, a heavy item that eats freight, or something with packaging that cost more than the contents.

Then look at the same list sorted by case contribution. Items that look fine per unit can be poor per case because the case is small, and items with thin unit margins can be perfectly good because they ship twenty-four to a box.

You will typically find three groups. Items that work as they are. Items that work if the case size changes. And two or three that do not work at any price you could charge, which should either be direct-only, repackaged as a multi-pack, or dropped from the wholesale sheet entirely.

That last group is the reason to build the sheet. Keeping a loss-making item off a line sheet is easy. Taking it off after a shop has reordered it twice is not.

Scenario columns, so you stop rebuilding it

Add three columns to the right and the sheet answers next year's questions too.

Freight paid or not. One column with freight subtracted, one without. Whether you cover shipping changes the picture more than most price decisions, and it lets you see what a freight threshold really costs.

Cost plus a buffer. Repeat the calculation with landed cost raised by a dollar or two. Costs rise between line sheet reprints, and knowing which items go underwater with a small cost increase tells you which prices to set slightly higher now.

Retail band. Try the calculation at the low and high end of the shelf price band in your category rather than at one number. If the item only works at the top of the band, it is fragile, because shops price toward the middle. The relationship between those two numbers is set out in wholesale price vs retail price.

When the sheet says no

Sometimes every scenario comes out thin, and the honest answer is that this item does not wholesale yet. Four ways out, in rough order of how often they work.

Raise retail. Brands that started on their own store frequently price below what a shop would charge, because they were comparing themselves to marketplace listings rather than to the shelf. If comparable products sit at forty-five and you are at thirty-eight, the gap is yours to take.

Cut landed cost at the packaging, not the product. Secondary cartons, ribbon, inserts and tissue are usually where a couple of dollars hide, and shops rarely need the unboxing experience a direct customer gets.

Change the unit. A larger size, a two-pack or a set carries more value per pick, and a heavier item on the shelf often justifies a price band where the arithmetic works.

Or keep it direct. Not every product belongs in every channel, and an item you love that only works at your own retail price is still a good item.

Questions brands ask about pricing sheets

Should labour be in landed cost? Yes, at a real hourly rate, even if it is your own hands making it. Otherwise the sheet is telling you a business is profitable when what it means is that you are working unpaid.

Should I include ad spend? No. Advertising is the cost of acquiring a direct customer, and it is precisely the cost wholesale removes. Comparing channels on a like-for-like basis is the whole argument in is wholesale profitable for small brands.

How often should the sheet be rerun? Once a year at minimum, and any time a component price, a carton size or a freight rate moves.

How do I know what shelf price to put in column C? From shelves that already carry things like yours. Pasting a product link into WholesalePilot previews the retailers and distributors that stock comparable products, which tells you both the kind of store you are pricing for and who to send the finished line sheet to.

Find the B2B buyers for your product

Paste a product link. We find matching wholesale buyers, email them in your name, and hand you the replies.

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