Wholesale to Retail Price Calculator
Calculate wholesale pricing and recommended retail MSRP based on product manufacturing costs using standard retail keystone markups.
100% markup = 2x unit cost
100% markup = 2x wholesale price
50.0% margin ($10 profit)
50.0% retailer margin
Wholesale & Retail Keystone Formula
Wholesale Price = Cost × (1 + Wholesale Markup %); Retail MSRP = Wholesale × (1 + Retail Markup %); Overall D2C Margin = (MSRP - Cost) / MSRP- Manufacturing Cost (COGS): Fully landed production cost per unit.
- Wholesale Price: Price charged to boutique and department store stockists (typically 2x cost = 50% margin).
- Retail MSRP: Manufacturer Suggested Retail Price for consumer sales (typically 2x wholesale = 50% retailer margin).
- D2C Margin: Profit margin achieved when selling directly to consumers on your own website at MSRP.
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- Manufacturing cost includes packaging and freight duty.
- Assumes standard independent boutique retail terms (net 30 or net 60).
Frequently Asked Questions
Why do retailers demand a 50% gross margin?
Retailers have heavy fixed brick-and-mortar overhead (store rent, sales staff, utilities, insurance, shrinkage), requiring at least a 50% gross margin (2x wholesale cost) to remain profitable.
What happens if my direct-to-consumer site undercuts my retail stockists?
Undercutting your own MSRP will damage relationships with wholesale retail partners, who may cancel future purchase orders. Maintain MAP (Minimum Advertised Price) parity across all channels.
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