Wholesale price calculator
How much margin are your discounts leaking?
Three numbers give you a leakage range for your business, with the formula behind it.
Questions
Divide your landed cost by one minus the margin you want. With a landed cost of $11.60 and a 30% margin target, the wholesale price is $11.60 ÷ 0.70 = $16.57. Then check it leaves your customer room to resell.
In consumer goods, wholesale is often about half the retail price, so the retailer can double it. Work it out for your customers: multiply the retail price by one minus their margin. At $29.95 retail and a 40% retailer margin, the highest workable wholesale price is $17.97.
Either works if you are consistent. Set the target in margin, because that is how results are reported, and turn it into a cost multiplier for the price list. A 30% margin is the same as multiplying landed cost by 1.43.