Business
Wholesale Pricing Unit Economics Calculator
Wholesale pricing is an order-level problem because logistics and payment terms do not scale exactly like product cost. This page reports invoice price, recognized unit revenue, contribution per unit and order, monthly channel contribution, break-even orders, and the list price required for a target margin.
Invoice price after trade discount-
Revenue after returns and rebate-
Recognized revenue per order-
Product cost per order-
Packaging, pick-pack, and freight per order-
Financing cost over payment terms-
Contribution per wholesale order-
Contribution per shipped unit-
Order contribution divided by recognized revenue-
Monthly order contribution after channel overhead-
Orders required to cover channel overhead-
Recognized unit revenue required for target margin-
Share of list price recognized-
List price required for target order margin-
Decision view
Wholesale list-to-contribution waterfall
Wholesale list-to-contribution waterfallTrade discount, returns, rebate, product, packaging, order logistics, and receivable financing reduce list price to unit and order contribution.
Exact scenario comparisonWholesale trade discount (%) changes while all other entered assumptions remain constant.
| Wholesale trade discount (%) | Invoice price after trade discount | Revenue after returns and rebate | Recognized revenue per order | Product cost per order | Packaging, pick-pack, and freight per order | Financing cost over payment terms | Contribution per wholesale order | Contribution per shipped unit | Order contribution divided by recognized revenue | Monthly order contribution after channel overhead | Orders required to cover channel overhead | Recognized unit revenue required for target margin | Share of list price recognized | List price required for target order margin |
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How to use Wholesale Pricing Unit Economics Calculator
- Enter list price, trade discount, units per order, and expected orders for one customer or terms group.
- Add returns, rebate, product, packaging, pick-pack, freight, and payment terms.
- Review order contribution and the minimum target list price before accepting the wholesale quote.
Calculator guide
Understanding Wholesale Pricing Unit Economics Calculator
Translate a public list price into wholesale cash economics after trade discount, returns, rebates, case packaging, pick-pack, freight, and the cost of financing customer payment terms. The result is calculated per order before monthly channel overhead.
Detailed calculation process
Reconcile wholesale list price, order cost, and target margin
The default uses a $42 list price, 18% trade discount, 120-unit orders, 3% returns, 2% rebate, $18 product cost, order logistics, 45-day terms at 9%, and $12,000 monthly channel overhead.
General formula: p_inv = p_list(1 - d/100)p_rec = p_inv(1 - r/100)(1 - b/100)R_order = q p_recC_log = q c_pack + C_pick + C_freightC_fin = R_order i(days/365)CM_order = R_order - q c_product - C_log - C_finProfit_month = n_order CM_order - F_channeln_BE = ceil(F_channel/CM_order) Commercial leakage is applied to unit price before order quantity. Product and packaging scale by shipped units, pick-pack and freight are order costs, and financing scales with recognized invoice value and time.
What each symbol means
Worked substitution with the default inputs
The default order contributes $1,492.05; 45 orders produce $55,142.16 after channel overhead, and the calculated target-margin list price is $34.62.
Price realization
Follow every dollar from list price to contribution
The waterfall uses the actual basis of each deduction rather than one blended variable-cost field.
Worked situations
Practical examples
- An 18% trade discount reduces a $42 list price to a $34.44 invoice price.
- After 3% returns and a 2% rebate, recognized revenue is $32.7387 per shipped unit or $3,928.64 for a 120-unit order.
Better inputs
Useful tips
- Use landed product cost including packaging, freight, duty, inspection, and expected damage.
- Apply distributor discounts, rebates, returns, and payment terms to the realized wholesale price.
- Check that minimum order quantities and case-pack rounding still produce the modeled contribution.
Before relying on the result
Limitations and common mistakes
- The financing calculation uses simple annual-rate carrying cost over average terms days.
- Bad debt, tax, duty, slotting fees, markdown support, commissions, and inventory holding before shipment are excluded.
- The model does not round case packs, pallets, minimum orders, or freight brackets.
Reference
Key terms
- Trade discount
- Reduction from the reference list price granted to the wholesale buyer.
- Recognized unit revenue
- Invoice price after expected returns and rebate leakage.
- Receivable financing
- Modeled carrying cost of waiting for the wholesale invoice to be collected.
Important note
Quote customers by actual terms group; a profitable average order can conceal loss-making small or remote orders.
Frequently asked questions
Why can the minimum list price be below the current list price?
The current $42 reference price produces more than the entered 25% target order margin under the default terms.
Should freight be entered per unit?
Enter the expected total outbound freight for one average order; the model allocates it across order units.
Does a longer payment term change revenue?
No. It changes the modeled financing cost of carrying the receivable.
Are returns subtracted from product cost?
No. The allowance reduces recognized revenue; the model assumes shipped product cost was incurred.