What is a standard wholesale discount?

50% off retail is the most common convention for handmade and gift industry wholesale. Some categories (jewelry, apparel) use 40%; high-volume retailers and distributors may push for 60% or more.

How do I know if my wholesale price is profitable?

Compare your wholesale price to your total cost per unit. If the wholesale price is below total cost, you lose money on every unit. A healthy wholesale margin is 30%+; under 10% means a single return or damaged shipment can wipe out the order's profit.

Why is wholesale 50% off retail?

Because the wholesale buyer marks your product up roughly 2× to resell it at the retail price you set. The 50% gap is their margin for stocking, displaying, and selling your product to the end customer.

How do I raise my retail margin to support wholesale?

Either raise your retail price (most sellers underprice) or cut unit costs — bulk material orders, faster production, simplified packaging. Aim for a retail margin of 60–65% so a 50% wholesale discount still leaves a healthy profit.

Should I offer different wholesale tiers?

Only if larger orders genuinely lower your per-unit cost. Otherwise you're just shrinking your own margin. Many makers offer one wholesale price and a separate distributor or net-terms price for large strategic accounts.

Wholesale Pricing Calculator

Wholesale pricing is where most handmade and small-batch sellers lose money — they price for retail margins and then knock 50% off without checking whether anything is left. This calculator runs the full math: total cost per unit, suggested retail price, wholesale price, profit per unit, total profit on the order, your wholesale margin, and the break-even floor below which you'd lose money on every unit.

Last Updated: June 2026

New calculator — wholesale price, retail price, bulk profit, and minimum profitable pricing for makers and ecommerce sellers.

Material cost per unit ($)

Raw materials and components per unit.

Labor cost per unit ($)

Your time × hourly rate, divided by units made per hour.

Packaging cost per unit ($)

Boxes, tissue, labels, inserts.

Overhead cost per unit ($)

Rent, utilities, software, allocated per unit.

Desired retail profit margin (%)

Profit margin you want at full retail price.

Wholesale discount (%)

Standard wholesale is 40–50% off retail.

Order quantity

Units in this wholesale order.

Total cost per unit

$13.00

Materials + labor + packaging + overhead

Suggested retail price

$32.50

60% margin target

Wholesale price

$16.25

50% off retail

Wholesale profit per unit

$3.25

Price − total cost

Total wholesale profit

$325.00

100 units

Wholesale profit margin

20.0%

Profit ÷ wholesale price

Minimum profitable price

$13.00

Break-even floor

Wholesale margin: Tight margin (10–30%)

Common wholesale discount scenarios

Discount	Wholesale price	Profit / unit	Margin
40% off	$19.50	$6.50	33.3%
50% off	$16.25	$3.25	20.0%
60% off	$13.00	$0.00	0.0%

What this means for your wholesale deal

Each unit costs you $13.00 to produce. At a 50% wholesale discount off your $32.50 retail price, you'd sell each unit for $16.25 — that's $3.25 profit per unit at a 20.0% margin. Across 100 units this order would generate $325.00 in profit. Your absolute floor — the price below which you lose money — is $13.00.

You're making money, but the buffer is thin. A small cost increase, damaged shipment, or chargeback could wipe out the profit on this order.

Formula

Total cost per unit = Material + Labor + Packaging + Overhead · Suggested retail price = Total cost ÷ (1 − Retail margin %) · Wholesale price = Retail price × (1 − Wholesale discount %) · Wholesale profit per unit = Wholesale price − Total cost · Total wholesale profit = Profit per unit × Order quantity · Wholesale margin % = (Profit per unit ÷ Wholesale price) × 100 · Minimum profitable price = Total cost per unit

Worked example

Material $6, labor $4, packaging $1.50, overhead $1.50, 60% retail margin, 50% wholesale discount, order of 100 units.

Total cost per unit = 6 + 4 + 1.50 + 1.50 = $13
Suggested retail price = 13 ÷ (1 − 0.60) = 13 ÷ 0.40 = $32.50
Wholesale price = 32.50 × (1 − 0.50) = $16.25
Wholesale profit per unit = 16.25 − 13 = $3.25
Total wholesale profit = 3.25 × 100 = $325
Wholesale margin = 3.25 ÷ 16.25 × 100 = 20%
Minimum profitable price = $13

Answer: $16.25 wholesale · $3.25 profit/unit · $325 on the order · 20% margin

How it works

Why wholesale math breaks: most sellers price their products for a retail margin of 40–50% — enough to feel comfortable, not enough to survive a 50% wholesale discount. Wholesale buyers (boutiques, gift shops, subscription boxes) expect to mark your product up 2× when they resell it, which is where the standard 50%-off-retail convention comes from. If your retail price doesn't bake in enough margin, the wholesale price falls below cost.

The two-step rule: to land at a healthy wholesale margin (30%+), your retail margin usually needs to be at least 60–65%. If your retail margin is 50%, a 50% wholesale discount leaves you exactly at break-even — every sale at that price loses money once you account for any return or damage.

Overhead is the silent killer: most makers calculate materials and labor but skip overhead — rent, utilities, software, marketing, packaging supplies. Add those into your per-unit cost (divide monthly overhead by units produced per month) or your wholesale price will quietly subsidize the business.

MOQ leverage: wholesale buyers expect price breaks at higher quantities, but you should ONLY discount further if larger orders genuinely reduce your per-unit cost (bulk material discounts, batch labor savings). Don't drop the price just because the order is bigger — bigger orders at thinner margins can lose more money, not less.

Common mistakes

Pricing for retail at a 40–50% margin, then taking 50% off — there's nothing left after costs.
Forgetting overhead, packaging, and labor on top of raw material cost.
Discounting deeper for bigger orders without verifying that your per-unit cost actually goes down.
Setting a wholesale price below the minimum profitable price (total cost) just to win the account.
Not factoring in net-30 or net-60 payment terms — wholesale buyers often pay slowly, which is a real cash flow cost.

Go deeper with plain-English guides on the same topic.

FAQ

What is a standard wholesale discount?: 50% off retail is the most common convention for handmade and gift industry wholesale. Some categories (jewelry, apparel) use 40%; high-volume retailers and distributors may push for 60% or more.
How do I know if my wholesale price is profitable?: Compare your wholesale price to your total cost per unit. If the wholesale price is below total cost, you lose money on every unit. A healthy wholesale margin is 30%+; under 10% means a single return or damaged shipment can wipe out the order's profit.
Why is wholesale 50% off retail?: Because the wholesale buyer marks your product up roughly 2× to resell it at the retail price you set. The 50% gap is their margin for stocking, displaying, and selling your product to the end customer.
How do I raise my retail margin to support wholesale?: Either raise your retail price (most sellers underprice) or cut unit costs — bulk material orders, faster production, simplified packaging. Aim for a retail margin of 60–65% so a 50% wholesale discount still leaves a healthy profit.
Should I offer different wholesale tiers?: Only if larger orders genuinely lower your per-unit cost. Otherwise you're just shrinking your own margin. Many makers offer one wholesale price and a separate distributor or net-terms price for large strategic accounts.

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