By Guest Blogger: Debbie McGrew for Debt.org, America’s Debt Help Organization
So, you want to own your own business? Before starting this new business venture, there are many decisions that will have to be made, and among them is the decision to buy wholesale or retail. Purchasing products at wholesale prices and then selling them at retail value is a great way to launch your own successful, profitable business. However, it is important to understand the difference between wholesale and retail to understand the many benefits of buying wholesale.
- Retail. Buying retail consists of buying goods for sale directly to consumers, not necessarily in large quantities, and for a higher price. Retailers must take other costs, such as employees, rent, taxes and advertising into account when selling their products. These costs are then factored into the price that customers are charged.
- Wholesale. In contrast, the wholesale market consists of a manufacturer that sells products to a middleman, who then sells the products to the public at retail value to make a profit.