If you plan to sell through stockists, you need to understand wholesale pricing. Get the structure right and your range works across channels; get it wrong and you either lose margin or undercut your stockists. Here is how wholesale pricing works for accessories.
Cost, wholesale and retail
Three numbers drive everything. Your landed cost is what the product costs you. Your wholesale price is what you charge a stockist. The recommended retail price is what the customer pays. The relationships between them have to leave a margin for you and for your stockist.
Keystone and typical markups
A common starting point is keystone pricing, where retail is set at roughly double the wholesale price, giving the stockist a healthy margin. Your wholesale price in turn needs to sit comfortably above your landed cost. Accessories generally support these markups well because of their strong perceived value.
Pricing for stockists
Stockists need enough margin to make carrying your product worthwhile, so your wholesale price has to leave room for their markup while still profiting you. If your costs are too high to support that, the answer is usually better costing or volume, not squeezing the stockist.
Balancing wholesale and direct
If you sell direct as well, set your retail price to match what stockists charge so you do not undercut them, and enjoy the fuller margin on direct sales. Build this structure early. Engelite helps brands cost ranges that work for wholesale and direct. Tell us your product and we will help you model it.