Wholesale Price Tier Calculator
Set profitable wholesale pricing tiers for B2B sales. Calculate margins per tier with MOQ-based discounts and get warnings for low-margin tiers.
Tier name · Minimum order quantity · Discount % off retail
Formula
How to Set Wholesale Prices
Wholesale pricing is the art of setting prices low enough to attract B2B buyers while maintaining healthy margins for your business. Most wholesale pricing uses either a discount-from-retail approach (e.g., 50% off retail) or a markup-from-cost approach (e.g., 2x cost).
The standard wholesale discount is 50% off retail price, which is known as the "keystone" wholesale rate. However, this varies significantly by industry, volume commitments, and brand positioning.
Wholesale Pricing Tiers
Volume-based pricing tiers incentivize larger orders and reward your best wholesale customers:
- Tier 1 (Small orders): 40-45% off retail — minimum order quantities (MOQ) of 12-24 units
- Tier 2 (Medium orders): 45-50% off retail — MOQ of 48-100 units
- Tier 3 (Large orders): 50-55% off retail — MOQ of 200+ units
- Distributor pricing: 55-65% off retail — for partners who redistribute to retailers
Always ensure your lowest wholesale tier still covers your costs with at least a 20-25% margin.
Wholesale vs Direct-to-Consumer Strategy
Many brands combine wholesale and DTC channels. Key considerations:
- Protect your DTC margins: Your wholesale price should never be lower than what you'd discount to during a sale
- MAP policies: Minimum Advertised Price agreements prevent retailers from undercutting your DTC prices
- Channel conflict: Set clear terms about where wholesale customers can sell (online, physical, marketplace restrictions)