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Finance: What is wholesale? 4 Views
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Description:
What is wholesale? Wholesale, technically, is the large quantity sale of products at a price reflective of the quantity, to buyers who would then turn around to sell the same product at a higher retail price. Within the supply chain originating with manufacturing through distribution, wholesale is the last stage before retail.
- Social Studies / Finance
- Finance / Financial Responsibility
- College and Career / Personal Finance
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
Transcript
- 00:00
Finance allah shmoop what is wholesale and well maybe there's
- 00:07
a better question here What is half sale or a
- 00:09
part sale No crickets Okay fine You're no fun All
- 00:13
right you buy a bottle behind to catch up for
- 00:15
six bucks at the grocery store That's six bucks Was
Full Transcript
- 00:19
the retail price you paid for that ketchup But when
- 00:22
safeway or kroger's or albertsons bought it they paid something
- 00:25
more like in four bucks for it The four bucks
- 00:28
they paid was their wholesale price That is most of
- 00:31
the time in business Manufacturers don't actually sell their product
- 00:35
directly to consumers Rather they distribute their products in bulk
- 00:39
Selling it price is cheaper than retail and then allowing
- 00:43
the retailer to mark up the price giving that retailer
- 00:46
enough profit margin teo Well you know exist And this
- 00:49
makes sense because well heinz is good at managing cheap
- 00:53
nonunion tomato labor in mexico smashing them up adding vinegar
- 00:57
removing fly wings and worm thing is bottling storing and
- 01:02
all the other production things like adding a whole heap
- 01:04
of helping of sugar And you can't forget about the
- 01:07
sugar All right so that's what hines is good at
- 01:09
Making ketchup They're not necessarily good at selling catch up
- 01:14
at least not directly to consumers like how would they
- 01:16
do this anyway A website A mail order thing from
- 01:20
heinz dot com Should they have a big chain of
- 01:23
pints ketchup drive throughs like who would drive to a
- 01:26
store to go by a jump You're probably not gonna
- 01:29
happen So heinz wholesales it's ketchup to grocery stores and
- 01:32
two convenience stores and tio wal marts and of course
- 01:36
to the special effects people in hollywood and at magic
- 01:38
show theaters all around the world Many questions remain as
- 01:41
to why the unit profit margins on catch up to
- 01:44
a grocery store are thirty percent whereas capers are like
- 01:47
eighty or ninety percent and a diet coke is only
- 01:50
like in a fifteen percent well the answer lies and
- 01:53
a few key dials that directly turned to map the
- 01:56
power or leverage each side has in any given to
- 02:00
go Oh she ation that is Heinz is a brand
- 02:02
people like and generally seek out but wouldn't die without
- 02:06
having it in their fridge Well the retailers safeway could
- 02:09
have its own safeway brand of ketchup and riots would
- 02:12
probably not break out in the street if they ever
- 02:14
do Didn't carry hines and you know that well in
- 02:17
either situation there'd be plenty of fake blood on hand
- 02:20
Teo manage through those riots right Well the same cannot
- 02:22
be said of diet coke where for many shoppers if
- 02:25
the grocery store didn't carry it well they'd simply shop
- 02:28
elsewhere So if this is the case while then wire
- 02:31
capers such a huge unit profit margin item to a
- 02:34
grocery store Why Because there's no sought after brand like
- 02:38
coca cola And well this is what the last caper
- 02:41
riot looked like In fact very few capers or ever
- 02:44
sold So the cost of the quote riel estate unquote
- 02:47
of however many square inches capers take up on the
- 02:50
grocery store shelves is very expensive And without high profit
- 02:54
margins at least per unit sold well the grocery store
- 02:57
would simply not bother to sell this low turnover Generally
- 03:00
who cares about jeff item Sorry capers I was just
- 03:03
keeping it real here So the bottom line is that
- 03:05
instead of hundreds of millions of customers while then pines
- 03:07
has just a few thousand to whom they wholesale they're
- 03:11
fake blood product And yeah it looks like while someone
- 03:14
just discovered a fifty eighth variety Hey what do you 00:03:17.223 --> [endTime] know
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