The wholesale pricing calculator

A tool from The Margin

The advice you will find first is that wholesale is half of retail. That runs the arithmetic backwards, and it is how a maker ends up losing money on her best orders. This runs it the right way round: what a piece actually costs you, what a shop should pay, what it should sell for on their shelf, and the smallest order worth packing.

Nothing is sent anywhere. The numbers stay in your browser, and there is no sign-up.

One piece
$
min
$
$
The month behind it
$
The margins
×
min
%
$
What one piece costs you—Of which — is your own time and — is overhead. Both are costs whether or not you pay yourself.
What a shop pays—The cost, multiplied. Not the retail price halved.
What it sells for—Twice wholesale, which is what a shop needs to stay open. This is also your own price — sell under it and you are competing with the people carrying you.
Smallest order worth packing—Fill in the fields and this fills itself in.

The test

Fill in the fields and this tells you what twenty orders would actually cost you in hours.

If twenty shops each placed that order tomorrow, would you be glad? If the honest answer is that it would break you, the price is too low or the minimum is too small — and it is better to find that out on paper than in a month of packing.

This is arithmetic, not advice · nothing is stored or sent


Why it runs in this order

Retail prices are often set by looking at what similar things cost, or by what felt right the week you opened. If you halve a number that was arrived at by feel, you get a number with nothing underneath it. Then a shop orders forty of the thing, you pack for two days, and you discover that the order you were most pleased to get is the one you made the least on.

So the cost comes first, and it includes your hour and a share of the month. Wholesale comes from the cost. Retail comes from the wholesale, which is what keeps you from undercutting your own stockists. The minimum comes from what an order costs you to pack, because an order that is not worth packing is not worth taking.

The long version, with the reasoning in full, is in the article this came from.


If the numbers surprised you

That is usually the useful outcome. If you would like a second read on your pricing, your terms, or the line sheet that carries them, tell me about your work — the first conversation is thirty minutes and costs nothing.

Every note in The Margin