How to Price Wholesale Orders for Handmade Crafts (Without Losing Money)
How to set wholesale prices for handmade products: start from cost to make, check the 50% rule, set case packs and minimums, and compare wholesale with consignment.
In this guide
Getting into a shop is exciting, until you realize the shop wants to pay half of your retail price. If your retail price was set too low, wholesale loses money. This guide shows how to set retail and wholesale prices that both work, with case packs, minimums and payment terms that protect your time.
- Wholesale is usually about 50% of retail, so retail needs to be at least about 2 times your cost to make.
- In the example below, a candle costs $13.04 to make. Wholesale at half of $19 is $9.50.
- Set a case pack and an opening minimum so wholesale orders are worth the time.
- Consignment pays more per sale but you wait for payment and carry the risk.
Why wholesale breaks many handmade prices
Shops double your wholesale price to cover rent, staff and their own profit. If your retail is only 1.5 times your cost, wholesale at 50% sells below cost.
The fix is to price retail from a full cost formula, then check that wholesale still covers cost plus a small profit. If not, raise retail, lower costs, or don't sell that item wholesale.
The steps
1. Know your cost to make
Materials, packaging, labor and overhead. This is the floor for wholesale.
2. Set retail from cost
Add profit and fees to get retail. Make sure retail is at least about 2 times cost.
3. Set wholesale at about 50% of retail
Check that it is above your cost. If it isn't, change something before you pitch.
4. Choose case packs and minimums
Sell in packs of 6 or 12 and set an opening minimum, such as $150 to $300.
5. Set terms
Payment up front or net 30 for trusted shops. Shipping is often paid by the buyer.
Worked example: retail and wholesale for three products
$20 an hour, 10% overhead, 30% profit and 10% fees for retail.
| 8 oz soy candle | Cold process soap bar | Beaded earrings | |
|---|---|---|---|
| Materials | $4.10 | $1.00 | $3.20 |
| Packaging | $1.15 | $0.35 | $0.40 |
| Labor at $20.00/hr | 0.33 hr = $6.60 | 0.12 hr = $2.40 | 0.3 hr = $6.00 |
| Overhead (10%) | $1.19 | $0.38 | $0.96 |
| Cost to make | $13.04 | $4.12 | $10.56 |
| Plus 30% profit | $16.95 | $5.36 | $13.73 |
| Cover 10% selling fees (divide by 0.90) | $18.83 | $5.96 | $15.25 |
| Suggested price | $19 | $6 | $16 |
Wholesale at half of retail is $9.50 for the candle, $3.00 for the soap and $8.00 for the earrings. Compare each with the cost to make above. If wholesale is close to cost, set a higher retail price before you pitch shops.
Wholesale vs consignment
| Wholesale | Consignment | |
|---|---|---|
| You get paid | At the order or net 30 | After items sell |
| Typical split | About 50% of retail | About 60% to 70% to you |
| Risk of unsold stock | The shop | You |
| Best for | Steady sellers | New products or galleries |
What you keep on each sales channel
The same 8 oz soy candle at $19.00 leaves different money in your pocket depending on where it sells. This uses the $13.04 cost to make from the example above, with Etsy's current transaction, processing and listing fees and Square's in-person card rate. Shipping, sales tax and ads are left out.
| Where it sells | Buyer pays | Fees | You keep | Profit over cost |
|---|---|---|---|---|
| Etsy (6.5% + 3% + $0.25 + $0.20 listing) | $19.00 | $2.26 | $16.75 | $3.71 |
| Your own website (about 2.9% + $0.30) | $19.00 | $0.85 | $18.15 | $5.11 |
| Craft fair, card reader (2.6% + $0.15) | $19.00 | $0.64 | $18.36 | $5.32 |
| Craft fair, cash | $19.00 | $0.00 | $19.00 | $5.96 |
| Wholesale to a shop (50% of retail) | $9.50 | $0.00 | $9.50 | -$3.54 |
On Etsy, fees take about 12% of a $19.00 sale. If a sale comes through Etsy Offsite Ads, add another 15% (12% for shops over $10,000 a year), so build that into your price if you're enrolled. Wholesale at half of retail loses $3.54 per piece here. Either raise retail, lower your cost, or set a separate wholesale price with a case minimum.
Wholesale pricing checklist
- Cost to make known for every product.
- Retail at least about 2 times cost.
- Wholesale at about 50% of retail, above cost.
- Case packs and an opening minimum.
- Payment terms and shipping in writing.
- A line sheet with prices and minimums.
- Consignment split agreed in writing.
Set wholesale and retail prices together
Type your costs into the peach cells. The calculator shows retail and wholesale prices and the profit at each.
Get the Wholesale and Retail CalculatorCalculators that help
- Candle wholesale: Wholesale and consignment for candles. Use the Candle Wholesale & Consignment Calculator.
- Soap wholesale: Wholesale and market pricing for soap. Use the Soap Wholesale, Consignment & Market Pricing Calculator – Tiers, Store Split & Booth Break-Even.
- Jewelry wholesale: Wholesale prices for boutiques. Use the Beaded Jewelry Wholesale Pricing Calculator.
- Retail-ready packaging: Cost packaging shops expect. Use the Retail-Ready Wholesale Packaging Calculator – Hang Tags, Header Cards, Barcodes & Cartons.
Common questions
How do I calculate wholesale price for handmade items?
Start from your cost to make, set retail with profit, then take about 50% of retail as wholesale. Check that wholesale is above cost.
What is the wholesale formula for crafts?
A common rule is cost x 2 = wholesale, and wholesale x 2 = retail. A full cost formula is more accurate.
What minimum order should I set for wholesale?
Many makers use $150 to $300 for an opening order and lower for reorders.
Is consignment better than wholesale?
Consignment pays more per item but you wait to get paid and carry the risk. It works well for galleries and new products.
Should I offer net 30 terms?
Only to shops you trust. New accounts often pay up front.
What is a line sheet?
A one or two page list of your products with wholesale prices, case packs, minimums and terms.
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