FREE TOOL
Wholesale Price Calculator
Set your wholesale price from what a unit costs you and the margin you need, then follow it through a distributor and a store to the price a shopper sees. Work back from a target shelf price to the most a unit can cost you, and count delivery as part of the cost.
Your wholesale price
$4.58
per unit, or $55.00 a case of 12
- Cost per unit
- $2.50
- Delivery per unit ($3.00 a case)
- $0.25
- Your profit per unit
- $1.83
- Wholesale price
- $4.58
On the shelf
- Store pays the distributor
- $6.11
- Shelf price
- $10.19
- Keystone shelf price
- $12.22
The shelf price is 4.1 times your cost per unit.
Working back
To sell at $8.99, a unit can cost you at most $2.18.
Price a delivery routeHow to Calculate a Wholesale Price
Price each step from the cost below it and the margin that step keeps. Margins here are a share of the selling price, which is how distributors and stores quote them, so the price at each step is the cost divided by one minus the margin.
- Delivered unit cost = what a unit costs to make or buy + delivery per unit (cost per drop ÷ cases per drop ÷ units per case).
- Wholesale price = delivered unit cost ÷ (1 − your margin).
- Distributor price = wholesale price ÷ (1 − distributor margin). Skip this step when you sell straight to the store.
- Shelf price = what the store pays ÷ (1 − store margin).
With the starting numbers, a unit that costs $2.50 to make and $0.25 to deliver sells at wholesale for $4.58 ($55.00 a case of 12) at a 40% margin. A distributor keeping 25% sells it to the store for $6.11, and a store keeping 40% puts it on the shelf at $10.19: 4.1 times what it cost you.
A margin is not a markup. Adding 40% to your cost gives a 28.6% margin, not 40%. The markup calculator converts one to the other.
Typical Margins From Producer to Shelf
The Montana Department of Agriculture’s guide to selling to grocery stores gives these planning figures for food products (Selling to Grocery Stores: Pricing). Ask the distributor and the stores you sell to for their own numbers before you print a price list.
| Who | Margin | What the guide says |
|---|---|---|
| Your business (specialty food) | 40% to 60% | The ideal gross margin for specialty foods. Below 40% leaves too little to support the product; above 60% invites competitors. |
| Distributor | 20% to 30% | The industry standard to leave room for in your suggested retail price. |
| Grocery store | 33% to 50% | The industry standard for the grocer. Elsewhere the guide says to assume stores require 30% to 40% on food, lower in competitive categories. |
| Broker | 5% to 15% | Only if a broker sells your product to distributors and stores for you. |
Margins vary by category: the same guide puts a fast-selling item such as canned beans at about 30% for the store and a slow seller such as spiced mustard at about 40%.
Keystone Pricing
Keystone pricing sets the retail price at twice the wholesale cost: a 100% markup, which is a 50% margin (OneCart). With the starting numbers, keystone on a store cost of $6.11 would be $12.22.
Grocery stores often keep less than 50% on food, so a keystone shelf price can overstate what your product will sell for. Set the store margin to what your buyers actually take.
Wholesale Price vs Retail Price
The wholesale price is what a business pays you for product it will resell, usually by the case. The retail price is what a shopper pays for one unit on the shelf. Between them sit the distributor’s and the store’s margins: with a distributor at 25% and a store at 40%, the shelf price is 2.2 times your wholesale price.
Start from the shelf price shoppers will pay for products like yours and work back. With the starting margins, a $8.99 shelf price leaves room for a unit cost of $2.18 at most. If your cost is higher, sell direct to stores, raise the price, or bring the cost down.
Delivery Is Part of the Wholesale Cost
Selling direct to stores and cafés means delivering cases, and that cost belongs in the price. Delivery per case is the cost of one drop divided by the cases on it, so a standing route with more cases per stop costs less per unit. Direct store delivery explains how small brands run those routes, and the delivery cost calculator prices a courier drop from two addresses.
For the wider setup, see how to start a wholesale business, B2B delivery, and courier service for wholesalers and food and beverage brands. The delivery cost calculator prices a courier route from two addresses.
Figures checked against their sources on .
Price a Wholesale Delivery Route
Enter your kitchen or warehouse and a customer’s address to see what a courier charges for the drop.
- A price range in about a minute
- SUVs, minivans, and cargo vans
- One-off, scheduled, or repeating routes
WHOLESALE PRICING FAQ
Wholesale Pricing Questions
How do you calculate a wholesale price?
Divide what a unit costs you, delivery included, by one minus the margin you want. A unit that costs $2.75 delivered, at a 40% margin, wholesales for $2.75 ÷ 0.6 = $4.58. Multiply by the units in a case for the case price.
What is keystone pricing?
Setting the retail price at twice the wholesale cost. It is a 100% markup, which gives the store a 50% margin.
What is a good wholesale margin for a food product?
The Montana Department of Agriculture’s grocery guide puts the ideal gross margin for specialty foods at 40% to 60%, and says to stay at 40% or above so the product can pay for itself.
How much do distributors and grocery stores take?
The same guide gives 20% to 30% for the distributor and 33% to 50% for the grocer as industry standards, plus 5% to 15% for a broker if you use one. Confirm with your own buyers; categories differ.
What is the difference between wholesale and retail price?
Wholesale is the price a business pays you for product it will resell, usually by the case. Retail is the price a shopper pays per unit, after the distributor and the store have each added their margin.
Should delivery be included in the wholesale price?
Yes, when you deliver to the buyer. Divide the cost of one delivery by the cases you drop off and add that to each case’s cost before you apply your margin, or charge it as a separate delivery fee with a minimum order.
MORE FREE TOOLS
Related Tools and Guides
The other numbers behind a wholesale price.
- Markup and Margin CalculatorTurn a cost into a price by markup or by margin, and convert one to the other.→
- Courier Delivery Cost CalculatorA courier’s price range for your route, from a pickup and a dropoff address.→
- Direct Store DeliveryHow small food and drink brands get product onto store shelves.→
Deliver Wholesale Orders Without a Van
Schedule recurring drops to stores, cafés, and distributors, priced by the route.