Method and assumptions
Retailer margin is normally expressed as a percentage of retail price. Confirm whether your buyer instead negotiates a markup on wholesale cost.
Wholesale price = retail price × (1 - retailer margin). Supplier profit = wholesale price - supplier unit costs.
Common questions
Is retailer margin the same as markup?
No. Margin uses retail price as the denominator; markup uses wholesale cost.
Should freight be included?
Include freight paid by the supplier. Exclude it when the buyer pays freight separately.
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