How Wholesale Margins Work

There are two real cuts between your RRP and what you receive: a retail store typically needs around 38% margin (buying at roughly 62% of your ex-GST RRP), and a distributor buying directly from you typically needs a further 30-35% margin on top of that (buying at roughly 65-70% of the wholesale price) — these are two distinct margins, not one combined figure. For the economics to work sustainably, brands should aim to retain 40-50% real margin after their own product cost. Enter your products below to see if your pricing is ready for wholesale.