Start with maker unit economics
The calculator builds unit cost from materials, labor, overhead, product packaging, and other unit cost. A target maker gross margin can produce a recommended wholesale price, while an optional proposed wholesale price can be evaluated separately. The proposal—not the recommendation—drives order economics when it is supplied.
Suggested retail is derived from the working wholesale price and the entered retailer gross-margin target. It is a mathematical planning result, not a claim about what every retailer expects or what the market will accept.
Reorders and first orders may need different minimums
A reorder includes the recurring order costs. A first order can add a separate setup cost, such as approved sample or onboarding work that does not repeat. When that cost is positive, the first-order minimum may be higher even though unit price is unchanged.
Case pack is an order increment, not a profitability shortcut. It can push the solved quantity above the exact mathematical minimum, which is why the result reports both quantity and merchandise subtotal.
Worked example
One SKU with separate first-order economics
This fictional example uses illustrative assumptions. It is not a recommendation or an industry benchmark.
Assumptions
- $8.00 unit cost for a fictional small-batch candle
- $20.00 proposed wholesale price and 50% retailer margin target
- Two-unit case pack
- 10% wholesale-channel commission plus 3% processing and $0.30 fixed processing
- $10 recurring administration cost and $20 first-order setup cost
- $100 minimum desired order profit
Calculation and result
- Margin-based wholesale recommendation$16.00
- Working proposed wholesale$20.00
- Suggested retail$40.00
- Actual maker margin at proposal60.00%
- Reorder minimum12 units / $240.00
- Reorder profit$102.50
- First-order minimum14 units / $280.00
- First-order profit$101.30
The $20 proposal leaves a 60% maker margin before order-level costs and supports a $40 suggested retail at the entered retailer target. Recovering the additional $20 setup cost raises the first-order minimum from 12 to 14 units.
What larger quantities can and cannot fix
A larger order can spread fixed order costs across more units. It cannot repair zero or negative contribution per unit. If wholesale price does not cover unit cost and percentage fees, every additional unit makes the same structural problem larger.
Common tradeoffs to inspect
- A lower price may help a retailer’s economics while reducing maker contribution.
- A larger case pack can improve order value but may be harder for a buyer to accept.
- A mathematical non-loss minimum may still be too small operationally.
- A direct retail price can become incompatible with the entered retailer margin and wholesale price.