Wholesale has a vocabulary, and buyers speak it fluently. You don't need an MBA — you need working definitions and the context of when each term will come up. Plain-English definitions below, from a founder who learned several of these the expensive way.
Pricing and margin
Wholesale price — what the retailer pays you per unit. Convention puts it at roughly half of retail, so it must cover your costs and your profit on its own. Price your wholesale as if it's the only price that exists; for many brands, eventually it is.
MSRP / RRP (suggested retail price) — the price you suggest the store charges shoppers. Stores expect you to publish it, and expect your own website not to undercut it.
Keystone — the classic retail markup: retail = 2× wholesale. "Better than keystone" means the store makes more than 2×; some categories (like jewelry) often expect it.
Margin vs. markup — margin is profit as a share of the selling price; markup is profit as a share of cost. A $10 item sold at $20 has 100% markup but 50% margin. Buyers talk margin; know which one you're quoting.
Orders and terms
Line sheet — your wholesale catalog: product photos, names, SKUs, wholesale prices, MSRPs, case packs, minimums, and terms, in a clean PDF a buyer can act on in one glance. The single most important sales document you own.
SKU (stock keeping unit) — the unique code per product variant. "Gold hoops" is a product; WG-HP-M is a SKU. Consistent SKUs are what let software (and sane humans) match orders to your catalog — the difference between "10 gold plus 2 free" being ambiguous or instantly priceable.
MOQ (minimum order quantity) — the smallest order you'll accept, expressed in dollars or units. Protects your margins from packing tiny boxes. Typical founder-brand opening minimums run $150–500.
Case pack — the multiple a product must be ordered in (e.g., candles in packs of 6). Simplifies your packing; state it on the line sheet.
Net 30 / Net 60 (net terms) — payment due 30 or 60 days after the invoice. You're extending credit; treat it accordingly. Full playbook in how to invoice a boutique.
Pro forma — payment before shipment; standard for first orders with new accounts.
PO (purchase order) — the buyer's formal order document, with their PO number. Larger stores require their PO number on your invoice to pay you; always ask.
Wholesale promo ("8+2") — buy 8, get 2 free. Show free units at $0 on the invoice rather than discounting the price — it protects your published price while sweetening the deal.
Selling channels and events
Marketplace (Faire, etc.) — platforms connecting brands and retailers, taking a commission. Strong for discovery; see the honest comparison in Faire alternatives.
Trade show / market (Atlanta Market, NY NOW, Las Vegas Market, Shoppe Object) — the industry's in-person buying events. The follow-up matters more than the booth: system here.
Sales rep / showroom — independent sellers who represent multiple brands to stores in a territory or a permanent mart showroom, typically for 10–20% commission on orders they write.
Stockist — a store that carries your brand. Your stockist list is both a sales asset (social proof for new buyers) and a relationship ledger.
Consignment — the store pays only when items sell. Occasionally right for art and one-offs; usually a founder trap. You carry all the risk; prefer real terms.
Retail-buyer vocabulary (know what she's juggling)
Open-to-buy (OTB) — the buyer's remaining purchasing budget for the season. "I'm out of OTB until August" means not now, not no — note the date and follow up then.
Sell-through — the share of stocked units the store actually sold. Your reorder case lives here: "the hoops sold through in three weeks" is the strongest sentence in wholesale.
Turn (inventory turnover) — how many times a store sells through inventory yearly. Buyers favor brands that turn fast.
Reorder — the second and every subsequent order; where wholesale profit actually lives. Most brands under-invest here, which is why a reorder nudge system pays for itself — when a good stockist goes quiet for 60 days, a two-line check-in usually wakes the account.
Want the vocabulary to stay theoretical? Mira speaks fluent wholesale so you don't have to — she reads orders, prices promos correctly, tracks terms, and notices quiet stockists. Watch the 30-second demo.