Post
Topic
Board Economics
Re: Retailers make more profit than wholesalers during inflation.
by
Wapfika
on 16/12/2022, 16:48:52 UTC
I think things that make retailers get greater profit because they can sell directly to the last consumer, this makes them able to raise higher prices than wholesalers, of course this is an effective market strategy for getting big profits.
Being retailers and wholesaler have their own advantage and disadvantages, in wholesalers or suppliers price they were able to sell their items in bulk and will not fear to have them just stock in their storage since their target is to sell more to earn. They’re into having volume to get a bigger profit. The more they sold fast their item the better for their businesses. In retailing it will require more effort to introduce the product and will requires time for their items to be sold unless they are really good in marketing. Now that everything online can be search, we will be able to see whose price is lower and can still be the same from the one we wanted. It requires big effort to make a sale in retail as there are competitions so the only way for them to earn is to put a mark for their effort and the time their money might sleep in the products that will not be sold fast.