Use the output as a threshold, not a forecast.
Wholesale pricing has to leave enough value for two businesses. A maker needs contribution after product, overhead, freight, commissions and negotiated discounts; the retailer needs an MSRP that supports its own margin and promotions.
The calculator works backwards from those targets. It sets a wholesale list price high enough that the maker margin survives the entered commission and MOQ discount, then derives an MSRP from the retailer-margin target.
Wholesale and MSRP formula
The cost base adds product cost, allocated overhead and per-unit freight. Required net wholesale revenue equals the cost base divided by one minus the target maker margin.
Wholesale list price grosses that net requirement up for sales commission and MOQ discount. Suggested MSRP equals wholesale list price divided by one minus the retailer margin. The result is a starting point for negotiation, not an instruction to coordinate resale prices.
With a 15.00 cost base, a 35% maker margin, a 10% commission and a 5% wholesale discount, a simple two-times-cost rule would not preserve the target economics. The reverse-calculated price does.
Limitations to keep visible
- Do not use the MSRP output to impose unlawful resale-price restrictions. Retail pricing law varies by jurisdiction.
- Chargebacks, samples, payment terms, bad debt and annual rebates should be converted into an expected percentage or per-unit cost.
- Retailers may calculate margin on net realized price after promotions rather than ticket MSRP.
Frequently asked questions
Why calculate margin after the MOQ discount?+
A discount granted on most orders is part of real unit economics. Protecting margin only at an unused list price gives a misleading result.
Is a 50% retailer margin always required?+
No. Use the target appropriate to the category, retailer and service level. The field is editable because channel economics vary widely.
Where do payment terms belong?+
Convert financing cost, bad-debt risk or early-payment discounts into allocated overhead or commission when material.