Wholesale & B2B
How do I set wholesale pricing?
Work backwards from the shelf price, not forwards from cost. Decide what the product should retail for, subtract the retailer’s required margin to get your wholesale price, then check what that leaves against your landed cost. If the gap will not cover operations and trade spend, the problem is the cost or the retail price.
Building up from cost produces a wholesale price the market will not carry. The retail price is set by the shelf the product sits on, and every margin in the chain has to fit underneath it.
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