Question

are wholesale markets are very costly? true or false ​

Answer 1

Answer:

False

Explanation:

Why are wholesale prices low?

Are new home loans cheaper than my running home loans? Can I avail the lower rate of interest on my old home loan?

Banks today are giving home loans at very low interest rates. The race for boosting the customer base has increased competition b

Paul Gobat

Answered 3 years ago

Why is buying wholesale cheaper?

Why is wholesale cheaper?

I guess you mean the mechanics of it rather than simply saying that wholesale is cheaper because it costs less.

First, let’s get out in the open that the largest majority of places that offer wholesale to the public are not selling wholesale. They are likely selling at a discount negotiated with the factory or are selling stuff that has been overstocked and/or discontinued and are allowed to sell it at clearance pricing.

The largest reason that wholesale pricing is cheaper is that the wholesaler- the one offering the wholesale pricing- purchases from the factory in very large volume and then in turns sell in smaller quantities, perhaps by the box or by the case, to retailers that in turn sell to the consumer in quantities of, um, one.

In order for the retailer to make money they look for the best price at the lowest quantity with the proper quality. They have to inventory the stuff, place it on the shelves, wait for it to sell, and sell it. Then some consumers decide they “don’t want” the item, return it, then the retailer has to ship it back to the wholesaler for credit. All of this costs money and is reflected in the retail price.