Wholesale Price Builder
Set the right wholesale price for every channel you operate: direct, Faire, key accounts, sales rep and international. The floor price auto-computes the minimum wholesale price that hits your target margin across all active channels.
Net margin by channel
| Channel | Cost % | Net per unit | Margin |
|---|---|---|---|
| Direct wholesale | 7.6% | $18.49 | 43.9% |
Floor price by channel
| Channel | Floor WS |
|---|---|
| Direct wholesale | $22.82 |
The keystone check
US market standard: wholesale price x 2 is the minimum viable MSRP (keystone).
| MSRP multiple | Reading |
|---|---|
| Under 2.0x | Below keystone. Retailers won't carry or will lose money. |
| 2.0 to 2.2x | Standard US keystone. Tight for specialty retail. |
| 2.2 to 2.5x | Healthy balance. Retailer can absorb markdowns, brand position solid. |
| Over 2.5x | High multiple. Retailer happy, but your WS price may be too low (leaving margin on the table). |
How channel margins are calculated
- Margin by channel is (net per unit minus landed cost) divided by the wholesale price, so every channel is compared on the same base.
- Direct: overhead and AR cost, plus free shipping on the estimated share of orders above your threshold, spread per unit.
- Faire: 15% commission on new and repeat orders (0% on Faire Direct), a $10 fee per new-retailer order, and processing at your payout speed on product plus average shipping, plus $0.30 per order.
- Key accounts: tier discount off WS, the cost of carrying net terms at your capital rate, and free shipping where offered.
- Sales rep: commission on the WS price. Distributor: distributor discount, then international freight and duty per unit.
- Floor price: for each active channel, the WS price where margin equals your target; the highest one sets the floor.
If channel costs plus your target margin reach 100% in any channel, no wholesale price can hit the target there; the floor then reads as unreachable.
Keep going
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