Do they make money by supplying the goods? Or do they make a certain percentage when one of the products is sold? Say for example a pair of Adidas trainers are sold for £100 in a sports store. Would the sports store keep the £100 after selling it or would some of the money go to Adidas? Or does it not work like that at all as the product is instead bought from Adidas first and therefore nothing from the sale goes back to them. Sorry if I made this really complicated, any help would be greatly appreciated.
In: Economics
There are different price structures and generally discounts based upon quantities.
This is the whole idea between wholesale pricing and retail pricing.
Wholesale is usually x amount above manufacture cost. Retail is x amount above wholesale pricing.
Super simplified but you could google some of those terms to get a more in depth edumacation.
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