Wholesale Case-Pack Pricing and Partial Cases

A wholesale case is both a sales unit and a physical fulfillment unit. Product cost may scale with individual pieces, carton cost with cases, and administration or picking setup with orders. Keeping those levels separate prevents a per-piece price from hiding the cost of a small or broken-case order. Define the case pack on the quote so customers and fulfillment staff use the same unit.

Worked decision model

Suppose each case holds 12 units costing $4.50 each. Case packing costs $3, and preparing an order costs another $18 regardless of whether it contains one or several full cases. A case sells for $90, equivalent to $7.50 per product unit. A one-case order costs $54 for goods, $3 for case packing, and $18 handling, totaling $75. It therefore contributes $15, or approximately 16.6667% of its $90 revenue.

A five-case order contains 60 units and produces $450 revenue. Goods cost $270, case packing costs $15, and the same $18 order handling brings total cost to $303. Contribution is $147, or approximately 32.6667% of revenue. The case price did not change; the order-level handling cost is spread across more cases. Average included cost per product unit falls from $6.25 on the one-case order to $5.05 on the five-case order.

Now consider six loose units. Their product cost is $27, and broken-case picking and a separate small box add $3 and $2. If these units are added to an existing shipment without changing the $18 order-level charge, the incremental cost is $32. Charging six times $7.50 creates $45 additional revenue and $13 contribution. The add-on can be positive even though a standalone six-unit order at the same product price is not.

For a standalone loose-unit shipment, add the $18 order handling, making total cost $50. Revenue of $45 produces a $5 loss. A 25% contribution target after these costs requires $50 divided by 0.75, or $66.6667 for the order, rounded upward to $66.67. This is a cost-based threshold under the stated assumptions, not a recommended market price. Customer acceptance and the operational choice to offer partial cases remain separate decisions.

Document whether case quantities can be mixed across products, whether breaking a case creates unusable packaging, and whether additional cartons change carrier cost. The example excludes carrier charges, so add them explicitly if they belong in the quoted boundary. Do not charge the full order setup again to every added case or omit it from every line. When quantities change, calculate total pieces, cases, partial-case activity, and shipments before deriving the final invoice and contribution.

Apply and verify the decision

1. Define the physical sales units

   Record units per case, permitted mixed cases, and the handling process for partial quantities before publishing a unit price.

2. Separate order and carton costs

   Assign costs to their actual triggers so one-time order work is counted once and each extra carton is counted when required.

3. Recalculate small-order economics

   Compare standalone and add-on requests separately, including any extra shipment or broken-case labor that changes the relevant cost.

Method reference: OpenStax: Accepting or Rejecting a Special Order. Accessed October 22, 2026. The reference supports the accounting concept; all scenario prices, rates, probabilities, and worked calculations are independently constructed hypothetical examples.