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Instructions
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This resource is designed to help you accurately calculate margins and pricing for selling wholesale (so you actually make $).
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If you have current pricing, start with the "Current Pricing Calculator" and input the numbers in purple. Then, move to the "Ideal Pricing Calculator" to see what numbers would look like if the key retail players got the ideal margin they would like.
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www.productandprosper.com
If you don't have current pricing, start with the "Ideal Pricing Calculator" and input your ideal margin numbers in purple.
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Current Retail, Wholesale, & Distributor Pricing CalculatorIdeal Retail, Wholesale, & Distributor Pricing Calculator
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NotesColor Code
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Input DataOnly change these numbersInput DataNotesColor Code
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Per UnitPer Case% Margin is within the idealCOGS per Unit $ 2.00 Only change these numbers
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Retail Price (MSRP) $ 10.00 $ 120.00 % Margin is lower than idealUnits per Case12
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Wholesale Price (PTR) $ 5.00 $ 60.00 % Margin is higher than ideal
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Distributor Price (PTD) $ 3.50 $ 42.00 Brand Gross Margin (DSD)60%
Ideal DSD margin between 40-60%
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Units per Case N/A 12Distributor Gross Margin30%
Expected margin between 25-30%
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COGS $ 2.00 $ 24.00 Retailer Gross Margin40%
Expected margin between 40-60%
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Trade Marketing Spend (%)15%15%
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Broker Commission (%)5%5%If no broker, put 0Trade Marketing Spend15%
Retail promos/discounts; Set aside 15-30%
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Broker Commission (%)5%
Set aside 5-20%
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Output Data
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Per UnitPer CaseGross Margin (%)NotesOutput Data
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Retailer Gross Margin $ 5.00 $ 60.00 50.0%Per UnitPer CaseGross Margin (%)Notes
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Retail Price (MSRP) $ 8.33 $ 100.00
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If go to retailer via distributorRetailer Gross Margin $ 3.33 $ 40.00 40.0%
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Distributor Gross Margin $ 1.50 $ 18.00 30.0%Wholesale Price (PTR) $ 5.00 $60.00
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Brand Gross Margin w/ Distributor $ 1.50 $ 18.00 42.9%Distributor Gross Margin $ 1.50 $ 18.00 30.0%
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Trade Marketing Spend $ 0.53 $ 6.30 15.0%Retail promos/discounts
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Broker Commission $ 0.18 $ 2.10 5.0%If go to retailer via distributor
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Brand Net Margin w/ Distributor $ 0.80 $ 9.60 22.9%Distributor Price (PTD) $ 3.50 $ 42.00
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Brand Gross Margin w/ Distributor $ 1.50 $ 18.00 30.0%With distributor
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If go to retailer direct-store-delivery (DSD)Trade Marketing Spend $ 0.53 $ 6.30
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Brand Gross Margin $ 3.00 $ 36.00 60.0%Direct-store-delivery (DSD)Broker Commission $ 0.18 $ 2.10
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Trade Marketing Spend $ 0.75 $ 9.00 15.0%Retail promos/discountsBrand Net Margin w/ Distributor $ 0.80 $9.6022.9%With distributor
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Broker Commission $ 0.25 $ 3.00 5.0%
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Brand Net Margin (DSD) $ 2.00 $ 24.00 40.0%If go to retailer direct-store-delivery (DSD)
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Brand Gross Margin $ 3.00 $ 36.00 60.0%DSD
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Trade Marketing Spend $ 0.75 $ 9.00
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Broker Commission $ 0.25 $ 3.00
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Brand Net Margin (DSD) $ 2.00 $24.0040.0%DSD