Wholesale Pricing Basics
Wholesale pricing sits between your manufacturing cost and retail price. The gap between wholesale and retail is what allows your trade customers to make their margin while still offering competitive prices to end consumers.
Getting this balance right is crucial. Price too high and retailers cannot compete. Price too low and you erode your own margins or undercut retailers who sell your products.
The Pricing Stack
- •Cost price: What it costs you to produce or acquire the product
- •Wholesale price: What trade customers pay (typically 2-2.5x cost)
- •RRP: Recommended retail price (typically 2-2.5x wholesale)
- •MAP: Minimum advertised price (if you enforce one)
A product costing you £10 might wholesale at £22 and retail at £45-50. This gives you a healthy 55% margin, while retailers make 50-55% on their sales.
Pricing Strategies
Different wholesale pricing strategies suit different business models. Choose based on your products, customer base, and competitive landscape.
Flat Percentage Discount
The simplest approach. All wholesale customers receive a fixed percentage off retail prices, such as 40% or 50% off RRP.
Best for: Consistent margins across products, simple administration
Tiered Pricing
Different discount levels based on customer type or order volume. Small retailers might get 35% off, while large chains get 50% off.
Best for: Diverse customer base, rewarding larger accounts
Cost-Plus Pricing
Set wholesale prices as a fixed markup on your cost. If a product costs £10, you might set wholesale at cost + 100% (£20).
Best for: Varying retail prices, guaranteed margins
Negotiated Pricing
Individual pricing agreements with each customer based on volume commitments, payment terms, or strategic value.
Best for: High-value accounts, key partnerships
Pro Tip
Most successful brands use a hybrid approach. A base tiered structure for most customers, with negotiated rates for strategic accounts that meet volume thresholds.
Shopify Plus Price Lists
Shopify Plus offers native price list functionality that makes implementing wholesale pricing straightforward. Price lists let you create different pricing structures and assign them to specific customer groups.
Creating a Price List
- 1Navigate to Products → Price lists
In your Shopify admin, find the price lists section under Products.
- 2Create a new price list
Give it a clear name like "Wholesale Tier 1 - 40% Off" or "Premium Partner Pricing".
- 3Set pricing method
Choose between percentage adjustment (e.g., -40% from retail) or fixed prices per product.
- 4Configure currency
Select which currency this price list uses. Create separate lists for different currencies.
- 5Assign to company locations
Link the price list to the B2B customers who should receive this pricing.
Fixed vs Percentage Pricing
Percentage Discount
- +Easy to maintain
- +Automatically adjusts with retail price changes
- -Less control over individual product margins
Fixed Prices
- +Precise control per product
- +Can optimise margins individually
- -More work to maintain
Volume Pricing
Volume pricing offers better rates for larger quantities, encouraging wholesale customers to place bigger orders. This benefits both parties: they get better unit costs, you get higher order values and more efficient fulfilment.
Setting Up Quantity Breaks
Shopify Plus allows you to set quantity price breaks within price lists. Here is an example structure:
Example: Premium T-Shirt
| Quantity | Unit Price | Discount |
|---|---|---|
| 1-11 units | £18.00 | 40% off RRP |
| 12-47 units | £15.00 | 50% off RRP |
| 48-95 units | £13.50 | 55% off RRP |
| 96+ units | £12.00 | 60% off RRP |
Quantity Rules
Beyond pricing, you can set quantity rules that control how products are sold:
- •Minimum order quantities: Require at least 12 units per SKU
- •Quantity increments: Must order in multiples of 6 (case packs)
- •Maximum quantities: Limit orders to prevent stock depletion
Pro Tip
Set quantity breaks at natural case pack sizes. If products ship in cases of 12, set breaks at 12, 24, 48, 96. This simplifies warehouse operations and makes it easier for buyers to order.
Wholesale Apps
Not on Shopify Plus? Several apps provide wholesale pricing functionality for standard Shopify plans. Each has different strengths.
Wholesale Club
One of the most popular options. Offers customer tagging, percentage discounts, net payment terms, and minimum order requirements.
Best for: Simple wholesale setups, small to medium B2B operations
B2B/Wholesale Solution
Feature-rich app with custom pricing, quantity breaks, quick order forms, and customer-specific catalogues.
Best for: More complex requirements, multiple price tiers
Bold Custom Pricing
Allows different prices for different customer groups with automatic price display and checkout integration.
Best for: Mixed B2C/B2B stores, customer-specific pricing
App Considerations
- •Monthly costs add up. Factor app fees into your wholesale margin calculations.
- •Some apps inject JavaScript that can slow your store. Test thoroughly.
- •Check compatibility with your theme and other apps before committing.
- •Consider migration path to Shopify Plus native B2B as you scale.
Managing Margins
Wholesale margins are typically thinner than retail. Careful management ensures wholesale remains profitable while offering competitive pricing.
Margin Calculation
Always calculate your wholesale margin against landed cost, not just product cost. Landed cost includes:
- •Product/manufacturing cost
- •Shipping to your warehouse
- •Import duties and taxes
- •Warehousing and handling
- •Payment processing fees
Protecting Margins
- 1Set minimum order values
Small orders eat into margins with fixed costs. Require £250+ minimums.
- 2Charge for shipping
Free shipping on wholesale erodes margins. Offer free shipping only above a threshold.
- 3Review pricing regularly
Costs change. Review and adjust wholesale pricing at least annually.
- 4Differentiate low-margin products
Some products may need different wholesale discounts to maintain acceptable margins.
Pro Tip
Create a spreadsheet mapping each product's cost, wholesale price, and resulting margin. Identify any products where wholesale margin drops below your target (typically 40-50%) and adjust pricing accordingly.
Communicating Pricing
How you communicate pricing affects customer perception and reduces support queries. Clear pricing documentation prevents misunderstandings and builds trust.
Pricing Documentation
- •Line sheets: Product images, descriptions, and wholesale prices in a downloadable format
- •Price lists: Complete pricing including quantity breaks and minimums
- •Terms and conditions: Payment terms, shipping policies, returns
- •Tier requirements: What customers need to qualify for better pricing
On-Site Pricing Display
When B2B customers log into your store, they should immediately see their pricing. Consider:
- ✓Clearly show wholesale prices on product pages
- ✓Display their tier or discount level
- ✓Show volume pricing breaks where applicable
- ✓Indicate minimum quantities clearly
Price Change Communication
When you need to adjust prices, communicate clearly:
- •Give 30-60 days notice before price increases
- •Explain the reason (costs, quality improvements, etc.)
- •Honour existing orders at old prices
- •Offer a window to order at current prices
Next Steps
With your pricing strategy defined, here is how to move forward:
- 1Audit your current margins
Map cost, wholesale, and retail for your key products. Identify any margin issues.
- 2Define your tiers
Decide how many pricing tiers you need and the discount level for each.
- 3Set up price lists
Create your price lists in Shopify Plus or via your wholesale app.
- 4Create documentation
Prepare line sheets and pricing documents for your wholesale customers.
