How To Price Wholesale Products for a Retail Business

There is a formula to calculate retail price which is; Wholesale Cost Plus Shipping Costs, Etc multiply by 2.25 Markup..The simplest formula to calculate the wholesale price is:

Wholesale Price = Total Cost Price + Profit Margin

Wholesale Price x 2 = Recommended Retail Price (RRP)

But if we follow this formula the wholesale price becomes unsustainably low.  The whole idea to do business is to make a profit. To make the above formula give us a profitable output we need to understand Recommended Retail Price first.

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