Set your wholesale and retail (MSRP) prices from your unit cost and target margins — the pricing ladder for selling to stores.
Wholesale price is set so your margin equals the target percent of that price (price = cost ÷ (1 − margin)). Retail uses a markup multiple — 2× wholesale is the classic "keystone." Stores need room to mark up, so wholesale must leave healthy retail margin. General information only.
Selling to stores means two prices: your wholesale price (what the store pays, giving you your margin) and the retail price the store charges shoppers. The retail price is typically a markup on wholesale — 2× is the classic "keystone." Work up from your unit cost so both you and the retailer make money.
Wholesale = cost ÷ (1 − your margin) · Retail = wholesale × markup
Doubling the wholesale cost to set retail — a 2× markup, or 50% retail margin. It's the traditional default in many retail categories.
If wholesale is too high, the store can't mark it up enough to be worth stocking. Both tiers need to work, which is why you start from a low enough cost.
Related: markup calculator · margin to markup calculator · profit margin calculator · all free calculators.
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