How to price wholesale coffee from your real cost per kilo
Start from cost, not from the roaster down the road. A five-step method to build a wholesale price per kilo that survives a rise in green prices, with a worked example.
8 min read Updated October 9, 2026
Many small roasters set wholesale prices by looking at what other roasters charge, then discover a year later that their margin has vanished because green coffee went up and they never recalculated. A wholesale price should start from your cost per kilo of roasted, packed coffee and a margin that pays for your fixed costs.
The method in five steps
- Cost the green per roasted kilo. Divide the landed green price per kg by (1 minus roast loss). At 15% loss, £8.50 green becomes £10.00 of green per roasted kilo. See landed cost and roast loss.
- Add direct costs per kilo: packaging and labels for the pack size you sell wholesale (usually 1 kg), energy per batch divided by output, and direct roasting and packing labor.
- Decide the gross margin per kilo you need. Work back from fixed costs and realiztic weekly volume, as in the business plan guide.
- Set the price and check it against the market. If you are well above what your target cafes pay, look at cost and positioning before cutting margin.
- Write the review trigger into your terms: for example, prices reviewed when the cost of green moves by more than a set percentage, with 30 days' notice.
Worked example
Assumed figures for a 1 kg wholesale bag of a blend. Replace each with your own.
Worked example
Building a wholesale price per kg, worked example
- Green coffee after 15% roast loss£10.0050%
- 1 kg valve bag and label£0.653%
- Energy per kg roasted£0.251%
- Direct labor, roast and pack£1.608%
- Delivery or courier per kg£0.503%
- Gross margin£7.0035%
Wholesale price per kg (ex VAT)£20.00
Illustration with assumed figures, not market prices. Total cost here is £13.00 per kg, so a £7.00 margin gives a £20.00 price and a gross margin of 35%.
Margin vs markup
A 35% gross margin and a 54% markup are the same price in the example above. Margin is profit as a share of the selling price; markup is profit as a share of cost. Mixing them up is one of the commonest pricing errors. If you want a 35% margin, divide cost by 0.65; do not multiply cost by 1.35.
Volume tiers and equipment
Bigger accounts expect a lower price per kilo, and many cafes ask for equipment on loan. Both cost you money. Build tiers from your own cost and minimum margin, and price equipment into a commitment: a minimum weekly volume over a minimum term, or a separate rental. See B2B pricing tiers and cafe account terms.
When green prices move
Green coffee prices follow the futures markets, currency and freight, and can move sharply within months. Recalculate cost per kilo every time you buy a new lot, and review prices on a set schedule. Customers accept a reasoned, notified increase far better than a sudden one.
Pricing hygiene
- Cost per kg recalculated with every new green purchase
- Roast loss measured from your own batch logs, not assumed
- Packaging cost at your actual order quantity
- A floor price per kg below which you do not quote
- Price review clause and notice period in your terms
- Delivery cost per kg checked for small, far-away accounts
Where Roastnet helps
Questions roasters ask
- What is a good wholesale price for coffee per kg?
- The right price is your cost per kg plus the margin you need. Compare against what your target cafes pay now, but do not copy another roaster's list without knowing your own costs.
- What margin should a roaster make on wholesale coffee?
- Enough to cover fixed costs at your realiztic volume. Wholesale margins are usually lower per kilo than retail; the volume makes up for it.
- Should wholesale prices include delivery?
- Either include it in the price with a minimum order, or charge it separately. Small orders delivered far away can wipe out the margin.
Official sources
Rules change. These sources were checked on October 9, 2026; always confirm the current position with the body that publishes them before you act.
Read next
Gross margin per kilo: the number that runs a roastery
Turnover tells you how busy you are. Gross margin per kilo, by channel and by coffee, tells you which customers and products actually pay the rent.
B2B coffee pricing tiers that protect your margin
Volume discounts are fair: bigger accounts cost less to serve per kilo. But tiers built on guesswork give away margin. Build each band from your cost to serve.
Roast loss and shrinkage: where your kilos go
Every kilo of green coffee comes out of the roaster lighter. How much lighter depends on the coffee and the roast, and it changes your cost per kilo more than most price negotiations.
Run the roastery from one place
Green stock, roast plans, wholesale orders and the green coffee market in one platform, with a free roast-logging app for your machine.