Wholesale Price

Wholesale Price

The per unit price of a good that a wholesaler (or distributor of large quantity of goods) charges a retailer (which resells the goods to the general public). A wholesaler is generally able to extract a better price from the manufacturer because it buys so many good relative to an individual retailer. Wholesale prices are thus able to be lower than what the retailer would pay if it went directly to the manufacturer. In theory, this enables the retailer to sell the good at a better price for the consumer. See also: Economies of scale.