Recipe Cost Tools

Wholesale vs retail price calculator

Selling jars, bars or baked goods to shops? Enter your cost per unit and your margin to get your wholesale price, then see the shelf price at keystone and at the shop's own margin. Nothing is saved or sent anywhere.

Keystone means the shop doubles the wholesale price, a 50% retail margin. The wholesale price is rounded to the cent before the retail prices are worked out.

Need an exact cost per unit first? The Recipe Cost Workbook keeps one ingredient price list for every recipe, handles kg/g, l/ml and dozen, and adds labor, packaging and overhead. $12, instant .xlsx download.

How it works

Wholesale price = unit cost ÷ (1 − your margin). Keystone retail = wholesale × 2. Retail at the shop's margin = wholesale ÷ (1 − retailer's margin).

Worked example (the values above): a unit that costs $4.20 at a 40% margin wholesales at $4.20 ÷ 0.60 = $7.00, leaving you $2.80. Keystone retail is $7.00 × 2 = $14.00. If the shop wants a 45% margin instead, the shelf price is $7.00 ÷ 0.55 = $12.73, and the shop keeps $5.73.

Ask each shop what margin it works on; it varies. If the shelf price looks too high for your market, that usually means the unit cost needs work, not just the margin. See also the margin vs markup guide, the free recipe cost calculator and more calculators.