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