CostReady

Chocolate Wholesale and Trade Pricing (UK)

Setting a trade price for delis and hampers that still clears the batch costs.

The short answer

Set a trade price from the same cost per piece, with a lower margin than direct sales, and check it still clears your batch costs at the volumes being ordered. Trade is worth taking when the larger runs cut your cost per piece, and not worth taking when it simply moves the same pieces at a thinner margin.

Step by step

  1. Start from the same cost per piece. Trade does not change what a chocolate costs to make. It changes what you keep.
  2. Set a separate trade target. Many chocolatiers work to around 70 percent direct and 45 to 55 percent trade. Measure each against its own target, not one blanket figure.
  3. Re-cost at the trade batch size. A standing wholesale order usually means larger batches, which lowers the cost per piece and can make a lower price genuinely profitable.
  4. Set a minimum order. Below a certain quantity, trade pricing on a small batch earns less than selling direct, and it uses the same hours.

The same piece, direct and trade

Cost per piece falls at trade volumes because the tempering is spread further.

LineAmount
Direct: 48 piece batch, cost£1.05
Direct at 70% margin£3.50
Trade: 96 piece batch, cost£0.82
Trade at 50% margin£1.64
That same £1.64 on a 48 piece batch36% margin, not 50%

The trade price only works at the larger batch. Quoting £1.64 while still making 48 piece runs earns 36 percent rather than 50, which is the mistake that makes wholesale feel unprofitable.

Use the Chocolate Pricing Calculator to put real numbers in, then save it free so prices update themselves when costs move.

Why it matters

Wholesale is where a chocolatier's margin is most often lost, because the price is agreed once and the batch size that justified it quietly reverts. Measuring the trade tier against its own target is what makes the erosion visible.

Frequently asked questions

What margin should I take on wholesale chocolates?

Commonly 45 to 55 percent against 70 or more direct. It has to clear your batch costs at the volume actually being ordered.

Should I show trade prices publicly?

No. Keep a separate trade tier and publish only direct prices, or retail customers will ask for trade rates.

How do I stop trade eroding my margin?

Measure each tier against its own target rather than one blanket figure, and re-cost when batch sizes change. A trade price judged against a direct target always looks like a failure, so real problems get lost.

Is sale or return worth it?

Only if you cost the returns as waste. Chocolate that comes back near its date is usually unsellable, and that loss belongs in the trade price.

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