Calculate margins for wholesale vs retail pricing. Optimize pricing. This tool helps you calculate, understand, and optimize this metric for your business.
Margin percentage and profit in shillings answer different questions. Retail almost always carries the higher margin and wholesale often carries the higher total, because volume does the work. Run both before deciding a channel is not worth serving, and remember the costs this does not model: wholesale ties up more stock and usually more credit.
Retail almost always carries the higher margin percentage. Wholesale often carries the higher profit in shillings, because volume does the work. Judging a channel on margin alone is how businesses quietly drop the one that pays the rent.
Run both numbers before deciding a channel is not worth serving, and look at the total rather than the better of the two.
Wholesale ties up more stock, usually extends more credit, and carries more risk of a single customer leaving. Retail carries higher handling cost per unit and more staff time.
The arithmetic here is the starting point. The decision should include how long each channel takes to pay you, which is often the real difference.
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