WHOLESALE PRICE Meaning and
Definition
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Wholesale price refers to the cost at which goods are sold in large quantities to retailers or other businesses. It is the price set by manufacturers, suppliers, or wholesalers that allows them to make a profit while also offering competitive pricing for retailers who buy in bulk.
Wholesale prices are typically lower than the prices offered to individual customers because they are based on the principle of economies of scale. By purchasing items in large quantities, retailers can benefit from lower production costs and enjoy a discounted price per unit.
In the context of a supply chain, wholesale price is the price at which goods are transferred from the producer to the retailer. It includes the cost of production, transportation, and any applicable taxes or fees. These prices are often negotiated between manufacturers and retailers, taking into account factors such as market demand, competition, and the overall cost structure.
Wholesale prices play a crucial role in determining the final retail prices of products. The difference between the wholesale price and the retail price covers the retailer's operational costs, marketing expenses, and profit margin. Therefore, the wholesale price directly impacts the profit potential for both manufacturers and retailers, as it influences the affordability and competitiveness of products in the market.
Understanding wholesale prices is essential for businesses to maintain profitability and make informed decisions regarding pricing strategies, inventory management, and wholesale purchasing. By carefully analyzing wholesale prices in relation to market conditions and consumer demand, businesses can optimize their pricing policies for maximum profitability and competitive advantage.
Common Misspellings for WHOLESALE PRICE
- qholesale price
- aholesale price
- sholesale price
- eholesale price
- 3holesale price
- 2holesale price
- wgolesale price
- wbolesale price
- wnolesale price
- wjolesale price
- wuolesale price
- wyolesale price
- whilesale price
- whklesale price
- whllesale price
- whplesale price
- wh0lesale price
- wh9lesale price
- whokesale price
- whopesale price
Etymology of WHOLESALE PRICE
The word "wholesale" comes from the Middle English "holesale", which is a compound of the words "hole" (meaning entire or wholly) and "sale" (meaning the act of selling). "Wholesale" originally referred to the sale of goods or commodities in large quantities or bulk, thus describing the act of selling in entirety.
The word "price" originated from the Old French "pris" or "prix", which ultimately comes from the Latin word "pretium", meaning value, worth, or price. Over time, "price" came to refer specifically to the amount of money or other consideration exchanged for goods or services in a transaction.
Therefore, the etymology of the term "wholesale price" combines the concept of selling in entirety (wholesale) with the value or amount exchanged for a product or service (price).
