Which Is Cheaper, Wholesale or Retail?
It is important to understand the vast differences between wholesale and retail. Wholesale and retail play different roles in the chain process of getting products and goods from the manufacturers into the hands of the consumer. The cost per unit is normally far cheaper from a wholesaler, this is because a wholesaler acquires stock from providers and manufacturers at a reduced rate as wholesalers purchase large quantities of stock, at prices that would likely be unavailable to retailers and the general public.
However, consumers normally cannot purchase from wholesalers, meaning they will have to purchase from retailers at retail price, which will almost certainly be higher than the wholesale price per unit. Producers and manufacturers determine the wholesale price, and retailers will determine the cost they will sell to the consumer, largely dependant on the cost they paid per unit from the wholesaler. Although the increase from wholesale price to retail price differs and depends on the product, origin, season and other things, retailers generally hike up the cost per unit by 2 times.