How to set a wholesale minimum order quantity
A larger order can spread handling and delivery costs across more units. Use that effect to test a minimum order, rather than choosing a quantity at random.
Open the Wholesale Pricing Calculator →Separate the unit contribution from order handling
A trade order can involve quoting, picking, packing, paperwork and delivery regardless of the number of units. Work out what each unit contributes before those order-level costs, then list the costs paid once for the order.
For illustration, £8 trade price less £4 unit cost leaves £4 per unit before other charges. If order handling and postage together cost £18, five units cover that amount, leaving £2. That is a cost break-even example, not necessarily a sensible commercial minimum.
Test a minimum against the contribution you want
If you want the same example order to contribute at least £30 after its £18 handling and delivery cost, it needs twelve units: twelve times £4 leaves £48, then £18 is deducted. Add applicable payment charges and packaging before adopting the figure.
Use the actual parcel cost at each quantity. A larger carton or heavier shipment can move delivery into a new band. Minimum order quantity, minimum order value and case-pack rules serve different purposes; state clearly which one the customer must meet.
| Quantity | Unit contribution total | Order cost | Order contribution |
|---|---|---|---|
| 6 | £24 | £18 | £6 |
| 12 | £48 | £18 | £30 |
| 24 | £96 | £18 | £78 |
Consider capacity and mixed orders
A mixed wholesale basket may combine products with different making times and margins. Check the likely mix instead of assuming every unit contributes the same amount. If you require full packs, calculate around those pack quantities and explain them in the quotation.
Also consider the cash and production time needed before payment is received. A profitable large order can still strain materials, staff time or dispatch capacity. Keep any agreed payment and delivery terms with the order calculation so the commercial decision is properly documented.
A worked example
Twelve units at £8 each with £4 production cost and £6 delivery contribute £42. Six units under the same assumptions contribute £18.
Before you use the result
- List costs paid once per order.
- Calculate unit contribution after direct costs.
- Set the amount you want the order to retain.
- Check actual postage bands and packaging.
- Test the likely product mix and capacity.
Common questions
Is there a standard wholesale minimum?
There is no universal quantity that fits every product and business. Unit contribution, handling, parcel costs, packs and the way stockists buy determine whether a proposed minimum works.
Should a larger order always receive a lower unit price?
Only if the saving or commercial reason supports it. Batch production and shared postage may reduce some costs, while other unit costs remain. Calculate the complete order before offering a discount.
Put the numbers into practice
Wholesale Pricing Calculator →How to include labour in handmade product pricing →How to price a product bundle after packaging and postage →How to price a quote with clear scope and costs →A practical calculation guide, not professional accounting, legal or tax advice. Examples are illustrative unless identified as official. Calculation methodology and limitations.