What is Wholesale Price in Retail? Explained

The wholesale price in the retail industry signifies the cost at which products are sold in bulk from manufacturers or distributors to retailers. This price, generally lower than the retail price, enables retailers to generate profit by selling the products to consumers at a higher rate. It encompasses production costs, distribution expenses, and margins for both the wholesaler and retailer. The wholesale price serves as a foundation for retail pricing strategies, impacting the final cost to consumers and influencing the overall profitability of the supply chain.