How to Price Hats in Your Store: Wholesale vs. MSRP and Healthy Margins

Pricing can make or break a product in your shop. Price too low and you leave money on the table. Price too high and the hat sits on the wall. As a wholesale hat brand, we build our wholesale hat pricing so our retail partners can earn a healthy margin. Here is how we think about it.

Wholesale vs. MSRP

Wholesale price is what you pay us for each hat. MSRP (manufacturer's suggested retail price) is what we recommend you charge your customers. The gap between the two is your margin.

What is keystone pricing?

Keystone pricing means doubling your wholesale cost to set your retail price. It is the most common boutique markup because it covers your costs, like rent, staff, and shipping, and still leaves profit.

For example, if a hat costs you $18 wholesale, keystone pricing puts it at $36 retail.

How Anchor James prices our hats

Our embroidered wholesale hats range from about $16.50 to $20 depending on the design, with a suggested retail price around $40. That gives you better than keystone on most styles, so there is room for promotions or bundle deals and still a strong retail margin on hats.

When to price above MSRP

Some stores price higher when:

• They are in a tourist area or high-traffic location
• The style is a limited or seasonal design
• The hat is part of a curated gift bundle

When to price lower

A lower price can help if you want an entry-level gift option near the register, or you are running a holiday promotion. Just make sure you still cover your costs.

Stock hats that earn their spot

Anchor James is a women-owned wholesale hat brand based in Fort Lauderdale, Florida. Our embroidered hats are sold in packs of 6 and priced for healthy retail margins. Apply for a wholesale account at wholesale.anchorjames.com to see current pricing, or find us on Faire.

Keep reading: Buying Wholesale Hats on Faire: Packs of 6, Minimums, and What to Expect · Best-Selling Holiday Hats for Boutiques: Stock Your Christmas Display Now