Many small retailers will buy through a wholesaler instead of buying direct from the manufacturer. Given an SKU with an MSRP of 10.00 and a discount to the wholesale channel of 30%, what would be the wholesalers selling price (WSP) if the wholesaler has a desired margin of 15%? If the retailer has a desired margin of 20%, what would the retail price be?

The below is incorrect:

MSRP = $10.00

Discount = 30%

Cost to Channel = $7.00

Margin 15% = +$1.05

WSP = $8.05

Margin 20% = +$1.61

WSP = $9.66