If I have a product that is sold at Walmart, so to say, do I make money when someone buys my product from Walmart or does Walmart buy my product in bulk to sell and that’s how I make my money? This question has bothered me for decades, thanks!
In: Economics
Walmart buys from the producer. So the profit is made before the consumer buys the product. Walmart makes a profit when the consumer buys the product from them. So Walmart pays a lower price for a product than a consumer would.
The difference in price between the consumer and the price for Walmart is called “added value” in economics.
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