What should you charge a shop?

A wholesale price has to leave room for two businesses: yours and the shop's. Set yours from your cost, then check the shop can still make its usual margin at your retail price.

Your numbers

Your wholesale price: $7.64
Your profit per unit: $3.44
The shop's margin: 52.3%
Retail is wholesale times: 2.10

The shop keeps half or more of the retail price, which is what many shops look for.

The kit builds your wholesale line sheet for you from your product list, ready to print or send as a PDF.

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How the sum works

Wholesale price = your cost divided by (1 minus the margin you want).
The shop's margin = (retail price minus wholesale price) divided by retail price.
Many shops price at about twice what they pay, so check your retail price is at least double your wholesale price.

Questions

Can I sell wholesale and direct at the same time?

Yes, and most small brands do. Keep your own retail price the same as the price shops charge, so you are not undercutting the shops that stock you.

What if the numbers do not work?

There are three levers: lower your cost, raise the retail price, or accept a thinner wholesale margin in exchange for larger orders. This calculator lets you test each one.

What should I send a shop that asks for prices?

A line sheet: one page listing each product, its wholesale price, the suggested retail price and your minimum order.

This was one sum

The Back Office Kit runs all of them, for every product, together.

One Excel workbook that prices your products, tracks your stock, logs your orders and builds your invoices and wholesale line sheet. One payment of $19. Download the moment you pay.

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The dashboard tab of the Back Office Kit: revenue, profit, cash, stock value and items to reorder.

What should you charge a shop?

How the sum works

Questions

The Back Office Kit runs all of them, for every product, together.

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