Wholesale Price Calculator

Formula

To calculate the Wholesale Price ($WP$):

\[ WP = TC + DP \]

\[ WP = \frac{RRP}{2} \]

Where:

$WP$ is the Wholesale Price ($)
$TC$ is the Total Cost to Produce ($)
$DP$ is the Desired Profit per Unit Sold ($)
$RRP$ is the Recommended Retail Price ($)

Wholesale Price Definition

A wholesale price is the amount a product is bought for by a retailer, typically in large amounts. The wholesale price is given to those that purchase enough product to be considered for the wholesale amount. There is no set amount a product should be sold for wholesale, but an often recommended level is 50% less than the retail price.

Example Calculation 1

Let's assume the following values:

Total Cost to Produce ($TC$) = $50
Desired Profit per Unit ($DP$) = $20

Using the formula:

\[ WP = 50 + 20 = 70 \]

The Wholesale Price is $70.

Example Calculation 2

Let's assume the following value:

Recommended Retail Price ($RRP$) = $100

Using the formula:

\[ WP = \frac{100}{2} = 50 \]

The Wholesale Price is $50.