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

Wholesale means supplying your product to someone who will then sell it on to the wider market. You can justify the lower price on the back of increased unit sales overall and reduced logistical costs such as transport, wages, postage/packaging etc.