What does wholesale price mean?
The price charged by manufacturer, wholesalers, or distributors for a product or products. The wholesale price will typically be dramatically lower than the price that is charged in a retail outlet, this mark up in price providing the retailer with the profit he needs to keep his business running. Wholesale prices can be low because the wholesaler depends on volume to make their profit, and are usually more than happy to provide a small mark-up in price if it means they can sell more goods.
When buying in bulk the retailer can make use of lower wholesale prices than when buying single items. The price charged by the manufacturer will be lower than that charged by the distributor, making up the supply chain for any given product. Wholesale prices are usually only slightly marked up from the manufacturers price, compared with retail prices, which can often be double retail price or more.