Wholesale pricing requires setting a price that covers manufacturing cost, leaves margin for the manufacturer, and still allows the distributor and retailer to apply their own margins and reach a competitive consumer price. Getting this structure wrong means either the product is uncompetitive at retail (too expensive) or unsustainable at wholesale (insufficient manufacturer margin). The Wholesale Price Calculator models the full pricing chain: manufacturing cost → wholesale price (manufacturer's margin) → distributor price → retail price → consumer price with GST. Enter your manufacturing cost and target margins at each tier to see the full chain and consumer-facing retail price.
lightbulb When to use this tool
- check_circle Setting a wholesale price for a new product that allows both distributor and retail margins while remaining competitive at MRP.
- check_circle Working backwards from a target MRP to determine the maximum viable manufacturing cost.
- check_circle Modelling different channel structures (direct retail vs distributor channel vs online marketplace) and their margin implications.
- check_circle Negotiating with distributors by understanding the margin structure from both sides.
Why use our tool?
Full Channel Pricing Chain
Model the complete chain: Manufacturing Cost → Manufacturer Markup → Wholesale Price → Distributor Markup → Distributor Price → Retailer Markup → MRP → Consumer Price with GST.
Reverse Calculation from MRP
Enter your target MRP and work backwards to find the maximum manufacturing cost that makes the pricing chain viable at each tier's required margin.
How it works
Enter your manufacturing cost per unit.
Set manufacturer markup percentage.
Set distributor markup percentage.
Set retailer markup percentage.
Set GST rate for final consumer price.
View the complete pricing chain and MRP.
Examples
science FMCG Product Pricing Chain
Manufacturing cost: ₹40 | Manufacturer markup: 50% → Wholesale: ₹60
Distributor markup: 20% → Distributor price: ₹72
Retailer markup: 25% → Retail: ₹90
GST 12%: → MRP: ₹100.80 (rounded to ₹101)