1. Scope
Sets wholesale price, retail price, and MOQ revenue from unit cost, overhead, and a target margin using cost-plus, keystone (2×), or target-margin strategies. It does not model trade-discount ladders or channel-specific programmes.
2. Inputs and outputs
Inputs
- unitCost number (currency)
- overheadPerUnit number (currency) default: 0
- strategy enum
cost-plus | keystone | target-margin.
- targetMargin percent default: 50
Used when strategy = target-margin.
- moq number default: 1
Outputs
- wholesalePrice
Per-unit wholesale price under the chosen strategy.
- suggestedRetailPrice
Keystone (2×) by default.
- moqRevenue
wholesalePrice × moq.
Engine source: src/lib/wholesale-pricing-calculator/engine.ts
3. Formula / scoring logic
cost_plus : wholesale = (unit_cost + overhead) * (1 + markup)
keystone : retail = 2 * wholesale
target_margin : wholesale = (unit_cost + overhead) / (1 - target_margin)4. Assumptions
- Overhead is fully allocated per unit — the user has already decided how to amortise fixed costs.
- No tiered discount: MOQ price is the same as unit price.
- Keystone doubling is a retail heuristic, not a law. Some categories use 2.5× or 3× markups.
5. Data sources
This tool relies on user inputs and standard arithmetic; no external benchmark data is bundled. When a question depends on an industry reference (for example, typical churn rates or hourly-wage medians), the linked adjacent tools cite their primary sources on their own methodology pages.
6. Known limitations
- No industry-specific markup benchmarks bundled. Apparel, electronics, and food each follow different conventions.
- Does not model distributor-level commissions, freight, or duty costs — build those into overhead before entry.
7. Reproducibility
Input
unitCost = $10, overhead = $2, strategy = target-margin, targetMargin = 50%, moq = 100.
Expected output
wholesalePrice = $24, suggestedRetail = $48, moqRevenue = $2,400.
8. Change log
- 2026-04-24 methodology page first published.