Wholesale Margins: Why Rematch Retailers Earn 50% and More, Beyond the 40% Standard
What wholesale margin really means, how keystone pricing works, and why Rematch retailers earn about 50% at MSRP from the first case and up to 57% to 60% at volume.
By Cole Stegman, founder · · 5 min read
If you run a pro shop, a gym front desk or a clinic counter, you have probably been pitched a product with a beautiful story and a thin margin. The story sells the first case. The margin decides whether there is a second one.
This post is about the margin. What it is, how to think about it, and why we set Rematch wholesale pricing so retailers earn about 50% at MSRP from the very first case.
I am Cole Stegman. I founded Rematch and I have been making and refining this formula for 12 years. I also play a lot of pickleball in Scottsdale, so I spend more time at pro shop counters than most brand owners. I wanted our wholesale program to be the one I would say yes to.
Margin, markup and keystone in plain language
Gross margin is the share of the selling price you keep after paying for the product. If a jar retails for $30 and costs you $15, you keep $15. That is a 50% margin.
Markup is the same math from the other direction: how much you add to your cost. A $15 cost sold at $30 is a 100% markup.
Keystone pricing means retail is double wholesale. Keystone equals a 50% margin. It has long been a target in specialty retail because it covers rent, staff and the shelf space a product takes up.
Many consumer brands, especially consumables, offer retailers less than keystone. Around 40% at the suggested retail price is common. On a $30 product, that is the difference between keeping $12 and keeping $15 on every unit.
Rematch margins, by order size
All margins below are calculated at our published MSRP. Your actual margin depends on the price you set in your store.
1 to 3 cases: about 50%
From your very first case, every Rematch product sits at about a 50% margin at MSRP. That is keystone on day one, with a one-case minimum.
4 to 11 cases: about 53% to 55%
At four cases, pricing steps down across the line. Mixed products count together, so a case each of Balm, Sensitive, Travel and Cream puts you here.
12 or more cases: about 57%, up to 60%
At volume, the 2 oz products and the cream reach about 57%, and the 1 oz Travel reaches about 60%.
The exact per-unit prices, margins by SKU and a live order builder are in the retailer portal, which you get access to once your application is approved.
Why margin alone is not the whole story
A high margin on a product nobody buys twice is a slow way to fill a back room. What makes a counter product worth carrying is margin multiplied by how often it sells.
It is a consumable
A balm gets used up. A customer who likes it comes back for another jar, usually right when they are standing at your counter after a game or a session. That repeat purchase is the whole game for a front desk product.
It works, so people come back
Camphor 6.5% and menthol 1.75% are FDA monograph actives at real strength. The customer feels the cool, then the warm, every time. Products that deliver on the first use earn the second purchase.
Quality that is easy to explain
Rematch is handmade in the USA, in small batches in Scottsdale, Arizona, made with organic oils and butters, with every ingredient listed and every jar lot-coded. That is a story your staff can tell in one sentence, and a label your customers can read in ten seconds.
A low minimum means low risk
The best margin in the world does not help if the opening order is more than you can sell. A one-case minimum of 12 units means your test costs less than a single box of paddles, and you can reorder in single cases as you learn what moves.
The Carry-All Starter Pack
The easiest way to start is the Carry-All Starter Pack: one case of every Rematch product. That is the 2 oz Balm, the 2 oz Sensitive, the 1 oz Travel and the 4 oz Cream, 48 units in all.
Because it is four cases, it lands in the 4 to 11 case tier on its own. It comes with a free countertop display, and the margin on the pack at MSRP is about 54%. Cream is on preorder and ships after launch; the rest ships in 1 to 2 business days.
Pricing for the pack is in the retailer portal.
How to protect your margin in store
A few habits keep the margin you were promised:
- Price at MSRP. We publish a minimum advertised price so a customer will not find the same jar cheaper online the next day.
- Open a tester. A balm sells by feel. One opened jar on the counter does more than any sign.
- Put it by the register. It is an impulse and repeat buy. Next to the card reader beats a back wall every time.
- Pair sizes. A 2 oz jar for home and a 1 oz Travel for the bag is a natural add-on.
- Reorder small and often. Fresh stock and a full display sell better than a big order you discount later.
Where Rematch fits
Clubs and pro shops, gyms and studios, PT and chiro front desks, golf shops, independent pharmacies and boutiques all have the same thing in common: an active customer standing at a counter right after they played, trained or had a session. That is the moment a balm sells.
For a practical guide to getting started, read How to carry a pain relief balm with a one-case minimum. For product ideas beyond the balm, read the best products to sell in a pickleball pro shop.
Apply to carry Rematch
Apply on the wholesale page and you will hear back within one business day with your retailer login, case pricing and a sample if you would like one. One case of 12 to start, mixed products welcome.
If you would rather put your own brand on the jar, see Private Label ALL-IN.
FAQ
What margin does a Rematch retailer earn?
About 50% at MSRP from the first case, about 53% to 55% at 4 to 11 cases, and about 57% at 12 or more cases. The 1 oz Travel reaches about 60% at volume. Margins are calculated at our published retail price; your actual margin depends on what you charge.
What is keystone pricing?
Keystone means retail is double the wholesale cost, which is a 50% gross margin. It is a common target in specialty retail, though many consumable brands offer less.
What is a typical wholesale margin?
It varies by category, but many consumer brands offer retailers around 40% at their suggested retail price.
What is the Carry-All Starter Pack?
One case of every Rematch product, 48 units, which lands in our 4 to 11 case pricing on day one and includes a free countertop display. The margin on the pack at MSRP is about 54%.
What is the minimum order?
One case of 12 units, mixed products welcome.
Rematch Balm is an OTC topical analgesic. Uses: For the temporary relief of minor aches and pains of muscles and joints associated with simple backache, arthritis, strains, bruises, sprains. This article is general information, not medical advice. Talk to your doctor about pain that is new, severe, or lasts more than 7 days.
Same time tomorrow.
Plant-based camphor and menthol balm. Handmade in Scottsdale, Arizona.
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