Optimizing Wholesale Margins
Selling wholesale is the fastest way to scale a brand, but the deep discounts required by retailers leave very little room for error. Our Wholesale Discount Calculator helps manufacturers and distributors model out exactly how much profit they make at different volume tiers.
Volume vs. Fulfillment Costs
A 50% wholesale discount might look terrifying compared to your DTC margin, but shipping one pallet to a single retailer is drastically cheaper than picking, packing, and shipping 500 individual D2C orders. Use our Expense Tracker to accurately calculate your fulfillment savings.
Minimum Order Quantities (MOQs)
Never offer a wholesale discount without tying it to a strict Minimum Order Quantity. If a buyer wants your 50% wholesale rate but only orders 5 units, your fulfillment costs will eat the entire profit margin. Use our tool to find your exact break-even MOQ before sending over a line sheet.
Frequently Asked Questions (FAQ)
Traditionally, wholesale pricing is 50% of the retail price (Keystone markup). However, this depends entirely on your manufacturing costs and the volume the wholesaler is committing to purchase.
Yes, tiered pricing (e.g., 40% off for 100 units, 50% off for 500 units) incentivizes larger initial POs, which lowers your per-unit freight and handling costs.