Finance: What is wholesale?

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.

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Transcript

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the retail price you paid for that ketchup But when

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safeway or kroger's or albertsons bought it they paid something

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more like in four bucks for it The four bucks

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they paid was their wholesale price That is most of

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the time in business Manufacturers don't actually sell their product

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directly to consumers Rather they distribute their products in bulk

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Selling it price is cheaper than retail and then allowing

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the retailer to mark up the price giving that retailer

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enough profit margin teo Well you know exist And this

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makes sense because well heinz is good at managing cheap

00:53

nonunion tomato labor in mexico smashing them up adding vinegar

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removing fly wings and worm thing is bottling storing and

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all the other production things like adding a whole heap

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of helping of sugar And you can't forget about the

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sugar All right so that's what hines is good at

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Making ketchup They're not necessarily good at selling catch up

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at least not directly to consumers like how would they

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do this anyway A website A mail order thing from

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heinz dot com Should they have a big chain of

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pints ketchup drive throughs like who would drive to a

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store to go by a jump You're probably not gonna

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happen So heinz wholesales it's ketchup to grocery stores and

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two convenience stores and tio wal marts and of course

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to the special effects people in hollywood and at magic

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show theaters all around the world Many questions remain as

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to why the unit profit margins on catch up to

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a grocery store are thirty percent whereas capers are like

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eighty or ninety percent and a diet coke is only

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like in a fifteen percent well the answer lies and

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a few key dials that directly turned to map the

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power or leverage each side has in any given to

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go Oh she ation that is Heinz is a brand

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people like and generally seek out but wouldn't die without

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having it in their fridge Well the retailers safeway could

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have its own safeway brand of ketchup and riots would

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probably not break out in the street if they ever

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do Didn't carry hines and you know that well in

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either situation there'd be plenty of fake blood on hand

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Teo manage through those riots right Well the same cannot

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be said of diet coke where for many shoppers if

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the grocery store didn't carry it well they'd simply shop

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elsewhere So if this is the case while then wire

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capers such a huge unit profit margin item to a

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grocery store Why Because there's no sought after brand like

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coca cola And well this is what the last caper

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riot looked like In fact very few capers or ever

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sold So the cost of the quote riel estate unquote

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of however many square inches capers take up on the

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grocery store shelves is very expensive And without high profit

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margins at least per unit sold well the grocery store

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would simply not bother to sell this low turnover Generally

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who cares about jeff item Sorry capers I was just

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keeping it real here So the bottom line is that

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instead of hundreds of millions of customers while then pines

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has just a few thousand to whom they wholesale they're

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fake blood product And yeah it looks like while someone

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just discovered a fifty eighth variety Hey what do you 00:03:17.223 --> [endTime] know