There is a quiet moment in every shop owner's week. A new box has arrived, the tape is cut, and the tissue paper is folded back. A stoneware vase sits there, slightly uneven, glaze pooling at the rim. You love it. Then comes the practical question: what should it cost?
Pricing can feel like the least romantic part of running an interior shop. But a good price is part of the story. It keeps the lights on, it pays for the next order, and it lets you keep choosing pieces with care.
This guide walks through wholesale margins and retail markups in plain language, with a focus on the kind of assortment boho and shabby chic retailers tend to build.
Wholesale margin and retail markup: two words, one conversation
These two terms are often used as if they mean the same thing. They don't, and mixing them up is one of the most common ways to end up with less than you planned.
Markup is how much you add on top of your cost. It is calculated from what you paid.
Margin is how much of the selling price you keep. It is calculated from what the customer pays.
Same product, same numbers, two different percentages. When you talk to a supplier, a bookkeeper, or another retailer, it helps to agree on which one you mean before you go any further.
The simple math behind a fair price
Let's use a made-up example. The numbers are only for illustration, not real prices.
Imagine a piece costs you 10 to bring into your shop.
With a 100% markup, you sell it for 20. Your margin is 50%.
With a 50% markup, you sell it for 15. Your margin is about 33%.
See how a markup that sounds generous can still leave a smaller margin than you expected? That is why many retailers think in margin first, and then work backwards to a price.
The formula is gentle enough to keep on a sticky note: retail price = cost ÷ (1 − target margin).
One more thing for shops in Denmark. Consumer prices are shown including VAT, while wholesale prices are usually quoted without it. Do your calculations on the price excluding VAT, then add VAT at the end. Check the current rules for your own situation.
Know your true cost before you set the price
The invoice price is only the beginning. A price that looks healthy on paper can thin out quickly once the rest of the journey is counted.
Think about what each piece really asks of you:
Freight and handling to reach your door
Import duties or fees, where they apply
Breakage, especially with glass and ceramics
Packaging and shelf or storage space
Payment fees and the occasional return
Your own time: unpacking, styling, photographing, wrapping
None of this is meant to dampen the joy of buying. It simply lets you price with your eyes open. A fragile item that travels well in a carton is a different calculation from a bulky one that needs extra room.
Pricing across a boho and shabby chic assortment
A good assortment has a rhythm. Some pieces are easy to say yes to. Others are the ones people circle back to three times before they leave. Your pricing can follow that rhythm.
Everyday pieces that welcome people in
A kitchen towel, a printed cushion cover, a coloured drinking glass. These are small, giftable, and often bought on impulse. They bring people through the door and into the habit of visiting.
These items usually work best with clear, simple price points that feel easy. Volume matters here, so a steady margin across many sales often does more than a high margin on a few.
The middle of the shop
Stoneware plates, a stainless steel bowl, a recycled glass vase, an iron shoe rack. These are the pieces that make a home feel lived in. People often buy them in sets or add them to a basket one at a time.
This is a lovely place for thoughtful bundling. Three plates, a bowl, and a vase can sit together on a table and tell a small story. A set price can feel generous to the customer while protecting your margin.
The anchor pieces
A handwoven rug, a recycled wooden coffee table, a ceiling lamp, a large stoneware vase. These are slower to sell, and they carry the room.
They often need a different approach to margin. Fewer units move, but each sale matters more. They also do quiet work for the whole shop: they set the tone, and they make the smaller pieces look like they belong somewhere.
Handmade and imperfect materials deserve a price that respects the hands behind them. Undervaluing a piece that took time to make rarely helps anyone, including you.
Keystone and beyond: when to adjust
Many retailers begin with a simple rule of thumb: double the wholesale price to get the retail price. It is often called keystone pricing. It is a good starting point, because it is easy to remember and easy to explain.
It is not a law, though. Sometimes you will want to move away from it.
Go higher on pieces that are rare in your area, styled beautifully in your shop, or hard to compare with anything else.
Go lower on pieces that are widely available or that you want to use as a friendly entry point.
Keep it steady within a collection, so shelves feel calm rather than confusing.
Pay attention to what your customers do. If everything sells in a week, there may be room to raise prices. If a piece sits quietly for months, try moving it, restyling it, or revisiting the price.
How a price feels on the shelf
A price is a number, but it is also a feeling. Customers notice whether a shop feels consistent and honest.
A few small habits help:
Round to price points that feel natural in your shop rather than chasing odd numbers.
Keep similar items within a similar range, so people can move through the shop without second-guessing.
Place a few approachable pieces near the entrance and a few special ones deeper inside.
Whether your shop leans towards soft vintage charm or layered boho warmth, the goal is the same. People should leave feeling they found something worth taking home, and that the price made sense.
Planning discounts without losing your footing
Seasonal sales are a natural part of retail. They are easier to manage when you have decided your limits beforehand.
Before you reduce a price, check your margin at the new level. A 20% discount does not reduce your margin by 20%. It can take a much bigger bite, especially if your starting margin was modest. Run the numbers once, write down the lowest price you are happy with, and let that be your guide.
It can also help to discount slow movers rather than the whole shop. Your best-loved pieces rarely need help.
Choosing a supplier who understands the story
Pricing is easier when the products themselves are consistent, well made, and clearly presented. A reliable supplier helps with the other half of the equation: predictable costs, a coherent range, and pieces that sit well together.
Whether you are exploring Boho wholesale, Shabby chic wholesale, or broader interior wholesale, look for a partner who makes it easy to build a collection with a clear identity. Madam Stoltz works with more than 3,000 retailers worldwide who share a love for the imperfect, the authentic, and the beautifully made. If that sounds like your kind of shop, you are welcome to become a retailer and see how the collection could fit your space.
In the end, pricing is a quiet craft of its own. Count carefully, stay curious, and let the numbers support the story you want your shop to tell.