How do I price for wholesale versus retail?
Wholesale pricing needs to cover your costs while leaving enough margin for the retailer.
The Narrative
The Empathy
Selling in shops at wholesale means you'll charge less per item than your retail prices, but you'll sell larger quantities. You want the volume without wiping out your profit, and you also want retailers to earn enough to keep reordering.
The Education
A common guideline is keystone pricing: set wholesale around half of your retail price. For example, if an item costs you $5 to make and you sell it for $20 at a fair, a $10 wholesale price still earns you $5 profit on each piece. If that margin feels too small, you may need to raise your retail price or cut costs before offering wholesale. Sometimes it's smarter to wholesale only your strongest sellers so you protect your time and profitability.
The Solution
Use a pricing worksheet to list each product's cost, proposed wholesale price, and retail price. Start with keystone as a baseline and check if the wholesale margin meets your needs; if not, increase retail prices or remove that item from wholesale. Set clear terms—like minimum order quantities and payment timelines—so both you and the retailer know how to succeed.
If a shop suggests a wholesale price that feels too low, ask about larger or repeat orders before lowering your number. Wholesale is a different strategy: you sell more items at a lower per-item profit, while retail is higher margin but individual sales. Balancing both with clear pricing rules helps keep your business profitable and growing.
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