Wholesale margin calculator

Calculate wholesale pricing, distributor margins, and MSRP. Includes keystone pricing reference and B2B negotiation benchmarks.

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Wholesale margin calculator benchmarks

Wholesale gross margin
15-30%
Distributor margin
20-40%
Manufacturer margin
25-50%
Retailer markup (from wholesale)
100% (keystone)

Wholesale pricing is a balancing act between giving retailers enough room to mark up (typically keystone — 100% markup, 50% margin) and preserving enough margin for the wholesaler. The chain matters: manufacturer → distributor → retailer → consumer, with each layer taking a cut.

The pricing chain

A typical consumer goods product flows like this:

  • Manufacturer cost: $10 (raw materials, labor, factory overhead)
  • Manufacturer wholesale price: $15 (50% markup, 33% margin)
  • Distributor price to retailer: $20 (33% markup, 25% margin)
  • Retail price (MSRP): $40 (100% markup, 50% margin = keystone)

Each layer must justify its existence — distributors handle logistics and credit risk; retailers provide consumer access. As direct-to-consumer (DTC) brands skip the middle layers, they can either pocket the difference or lower retail prices.

Wholesale benchmarks by category

CategoryWholesale marginRetailer markup
Apparel40-50%100-200%
Food/beverage20-30%30-60%
Consumer electronics10-20%10-25%
Hardware/tools25-40%30-50%
Cosmetics/beauty50-60%100-200%
Books40-55%40-80%
The MAP question
Most wholesale relationships include a Minimum Advertised Price (MAP). It protects the retailer's margin and the brand's perception. Calculate your wholesale price assuming the retailer will sell at MAP, and that they need at least 40-50% margin to make stocking your product worthwhile.

Frequently asked

What's a fair wholesale margin?

20-40% for the wholesaler, with the retailer expecting room to mark up keystone (100% markup, 50% margin) on their end. Categories with high retail markups (apparel, beauty) leave more room; commodity categories (electronics, food) leave less.

How do I price wholesale if I currently sell DTC?

Take your retail price, divide by 2 (that's keystone), and that's roughly your wholesale price. If your retail price doesn't survive being halved, your DTC pricing is too thin to support wholesale — common in low-margin categories.

Should wholesale prices include shipping?

Usually FOB origin (buyer pays shipping). Larger orders often qualify for free shipping above a threshold. Build the assumption into your wholesale contract explicitly — surprise shipping costs are a relationship-killer.

Compare across industries

See worked examples from retail, restaurant, construction, SaaS, and more.

View all industries →