What does wholesale mean, and how can companies charge a lower price per item because of it?

Question

What does wholesale mean, and how can companies charge a lower price per item because of it?

In: 3

Answer 1

Shops sell 1 bottle of fizzy pop at a time for $1 a bottle retail price, to sell 100 bottles requires 100 transactions each for $1 a time which costs the shop in staff time and other expenses. Wholesaler sells 100 bottles of fizzy pop in a single transaction for 90 cents per bottle or $90 for the 100 bottles in a single transaction, a lot less staff costs involved even though they take in less money they might make more profit.