Calculate wholesale pricing with margin, MOQ, and bulk discounts

Wholesale pricing is the price charged when selling goods in bulk to retailers or resellers rather than directly to end consumers. It is typically lower than the retail price and is calculated by adding a desired margin to the unit cost of the product.

Wholesale price is what a manufacturer or distributor charges a retailer for products bought in bulk. Retail price is what the end consumer pays. The retail price is usually significantly higher than wholesale because the retailer adds their own markup to cover expenses and profit.

MOQ stands for Minimum Order Quantity. It is the smallest number of units a supplier will sell in a single order. MOQs help suppliers ensure each order is profitable by covering production and shipping costs. Buyers must meet the MOQ to place an order.

Bulk discount tiers offer progressively lower prices as the order quantity increases. For example, ordering 100-499 units might earn a 5% discount, while ordering 500 or more earns 10% off. This incentivizes larger orders and helps sellers move more inventory.

Wholesale margins typically range from 30% to 50%, depending on the industry. Consumer goods often target 40-50%, while electronics may be lower at 20-30%. The right margin depends on your cost structure, competition, and how much value you add through branding or distribution.

Use the margin-based formula: Wholesale Price = Unit Cost / (1 - Margin / 100). For example, if your unit cost is $12 and you want a 40% margin, the wholesale price is $12 / (1 - 0.40) = $20. This ensures that 40% of the selling price is profit.