Three-offer wholesale value frontierBubble area represents net wholesale sell-in
Business
Wholesale Pricing Scenario Calculator
Compare three commercially coherent wholesale offers without confusing a lower invoice price with a stronger channel outcome. Each scenario combines its own discount, dealer-order response, return rate, marketing support, dealer margin, net sell-in, and contribution so the preferred offer is visible from both manufacturer and dealer perspectives.
Best contribution scenario-
Standard contribution-
Promotion contribution-
Volume-tier contribution-
Winner net units-
Winner dealer margin-
Winner net sell-in-
Contribution advantage-
Winning contribution relative to the standard line sheet
Dealer economics frontier
See which offer balances channel margin, sell-in, and manufacturer contribution
Dealer marginManufacturer contribution
| Offer | Wholesale price | Dealer margin | Net units | Net sell-in | Contribution | Contribution/unit |
|---|
Offer design workflow
Build a dealer offer from economics, not discount alone
- Anchor suggested retail price and landed unit cost.
- Describe the standard line sheet as the control offer.
- Give the promotion its own order response, return rate, and support spend.
- Model the volume tier as a separate dealer behavior—not a renamed promotion.
- Compare manufacturer contribution with dealer gross margin before selecting the winner.
Channel interpretation
A strong offer must clear two different economic tests
Manufacturer contribution pays for the brand, while dealer margin funds the retailer’s shelf space, labor, markdowns, and selling risk. The frontier makes an offer’s position on both axes explicit.
Detailed calculation process
Calculate invoice economics, sell-in response, and contribution in sequence
Wholesale price(s) = Suggested retail price × (1 − Discount(s))Gross units(s) = Dealers × Orders/dealer × (1 + Order lift(s)) × Units/orderNet units(s) = Gross units(s) × (1 − Return rate(s))Contribution(s) = Net units(s) × (Wholesale price(s) − Landed cost) − Support spend(s)s identifies the standard, promotional, or volume-tier offer. Currency inputs remain currency per unit or per month; discounts, lifts, and returns are converted from percentages to decimals before substitution. Net sell-in equals net units times wholesale price. The contribution check reconciles net sell-in less landed product cost and scenario support.
Commercial examples
Use the scenarios for genuinely different channel decisions
Seasonal promotion: a brand tests a six-point deeper discount, 24% order lift, and higher returns, then asks whether incremental sell-in pays for $3,500 of co-op support.
Permanent volume tier: a distributor offers a smaller discount than the promotion but expects a larger reorder lift and fewer returns. The contribution frontier shows whether repeatable dealer behavior is worth more than the launch spike.
Evidence to collect
Replace order-lift assumptions with account evidence
- Dealer reorder frequency by discount tier
- Returns by retailer and promotional window
- Actual co-op claims and sample costs
- Retail sell-through and markdown history
Boundary of the model
Sell-in is not consumer sell-through
The calculator omits inventory aging, retailer payment terms, slotting fees, rebates, chargebacks, and cannibalization. Use the wholesale cash-flow model for collection timing and account-level POS data for demand validation.
Wholesale pricing scenario FAQ
Questions before changing a line sheet
Why can the largest sell-in offer lose?
More units can carry less contribution per unit and require extra support.
Can dealer margin exceed 50%?
Yes, when the wholesale price is below half of suggested retail, although actual retail markdowns may reduce realized margin.
Should returns use historical or forecast rates?
Use a cohort comparable to the offer, retailer mix, and season being modeled.
Practical examples
Wholesale Pricing Scenario Calculator in real planning situations
- Compare a standard line sheet with a temporary promotional discount.
- Test a volume tier that earns more orders but requires co-op support.
- Find when extra dealer sell-in fails to offset lower contribution per unit.
Important note
Before relying on this result
Calculated from the entered values using the displayed accounting method. Reconcile material decisions with source records and applicable accounting policy.
Additional Wholesale Pricing Scenario Calculator questions
Why include dealer margin?
A manufacturer offer that leaves insufficient dealer economics may not produce the assumed order response.
Are returns deducted from sell-in?
Yes. The entered return rate reduces net units, net revenue, and contribution.
Does the model predict dealer demand?
No. Order response is a scenario assumption that should come from account history or a controlled offer test.