What is my margin selling the same product wholesale to shops versus retail in my own store?
Run the calculator twice with the same unit cost: once at the wholesale price, once at the retail price. Wholesale almost always shows the lower margin, but a fair comparison starts when you add each channel's own order costs, because one wholesale order spreads delivery and handling over dozens of units.
First comparison: the product alone
You make scented candles that cost 40 each. You sell them online for 89, and a gift shop in Dubai offers to take 50 a month at 55 each. In the Profit margin calculator:
Wholesale (cost 40, price 55): profit 15, margin 27.27%, markup 37.50%.
Retail (cost 40, price 89): profit 49, margin 55.06%, markup 122.50%.
On these numbers retail wins by a mile. But nothing yet accounts for what each order costs you.
Second comparison: after order costs
In retail, almost every candle is its own order: an ad to find the buyer, packaging, shipping you absorb and a payment fee. Say that comes to 18 per order. The wholesale order is a single delivery to the shop costing 60, which is 1.20 per candle across fifty, with no advertising.
Retail after costs (cost 58, price 89): profit 31, margin 34.83%.
Wholesale after costs (cost 41.2, price 55): profit 13.80, margin 25.09%.
The gap shrank from about 28 points to under 10. And the monthly wholesale order brings 690 in profit in one deal, while you would need about 23 retail orders to match it.
When wholesale earns its thinner margin
- When the order is regular and predictable, so you can plan production and stock with confidence.
- When you have spare production capacity your store cannot absorb.
- When payment arrives in reasonable time. A wholesale deal paid two months later ties up your cash while you pay for materials now.
- When the shop does not undercut your own store price and compete for your customers.
Have a wholesale price ready before anyone asks
Decide the lowest wholesale margin you will accept, work out the price that delivers it after delivery costs with the Selling-price calculator, then check it here. If you want tiered prices by quantity, try each tier in the calculator and send the shop a final offer with each tier as a clear line using the Quotation generator.
Common questions
Is a 25% wholesale margin low?
It depends on what an order costs you, how big it is and how regular. Compare it with the retail margin after order costs, not before.
Do I run wholesale per unit or for the whole deal?
Either, as long as cost and price cover the same quantity. Per unit is easier to set against retail.