Retailers make more profit than wholesalers during inflation.

[Jody.Drummer]

The difference between wholesalers and retailers is a difference that can be seen immediately. The price offered will also be cheaper than retail sellers. But there is one thing that must be considered, when retailers buy, sometimes buy from wholesalers too, there will be a symbiosis of mutualism that is mutually beneficial to each other. Usually retailers will buy in large quantities so that it is more profitable for the first seller which I then call wholesalers, but those who buy from retailers will definitely not buy the same amount meaning that there will be a longer lag time for retailers to finish their wares.
In calculating the profit calculation it will be very clear that the last seller will benefit more than the first seller.
So what I want to convey here is, the first seller will not get more profit than the last seller, but they can sell more than the last seller. In an economy, I would generally prefer to make a small profit but sell more of my product and be a buyer center retailer, than to make a large profit but have few target customers, or take longer to get my product to market.

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[el kaka22]

Putting branding and effort into something is what matters the most. You could find a shirt for 9.99 and sell it for 19.99 if you are a retail seller and can actually sell it. Sales is the most important part of every company and it upsets me that most people do not see it.

Your idea, your invention, your website, your product, your machinery, your foods taste, NOTHING matters if you can't sell it. Find a way to send people to mars for 10 bucks per person, if you can't sell it then someone else will steal or buy your product and replicate it and sell it for a billion dollars each. So, it's all about retailers being able to sell a lot better, compared to wholesale.

[xSkylarx]

This depends on the situation because I noticed that you are only talking about a single product. For example, whole seller bought a bundle of clothes and then the retailer comes in to buy it, well the whole seller still gets more profit since the retailer can't buy it all as the price would be doubled or more and also with wholesalers their profit are not single penny its big one as those retailers tend to buy more on them which is a guaranteed profit and fewer efforts as they are already known, unlike retailers they need to effort to sell it.

[BRINIRHA]

I once ran a business as a retailer. and it is true that a retailer's profit can indeed be greater than that of a wholesaler. However, it should be noted that the retailer's income will always be less than that of the wholesaler. We are retailers buying from wholesalers in bulk. Even though wholesalers don't make much profit, because we as retailers buy in large quantities, wholesalers still get more profits. because the accumulation of profits from the total goods that sell more. we are retail traders selling in retail at a higher price with a higher profit of course. but still a retailer cannot directly sell goods in large quantities. we sell goods one by one. so that even a large profit becomes a small income because the number of goods sold is not as much as the wholesaler. so basically wholesalers have a small profit but the number of goods sold is very large so that the income is greater. while retailers sell goods with large profits but only a few total goods are sold so that income remains small. I left the retail store business that I once ran. because the number of retail traders is increasing. when becoming a trader we must be a minority trader. but known and needed by the majority.

[Findingnemo]

That makes sense to me, because wholesalers are supposed to sell for low profit margin but in high quantity so the retailer can resale to the end customer and get their profit too. And we can't compare just with one product as an example this even without how man quantities sold by both parties.

[Bitcoin1216]

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.

[ultrloa]

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.

They can inflate the price and just used the  unfortunate incident like covid or any crisis happening in the world so that they can increase the price of the product which is necessary needed at that time. This is totally bad to the economy since this one really affect everyone since this will initiate for the price of other product to rise up to.

Government need to step up on this since they are the one who can control the price of each basic necessities and if they cannot stop those greedy businessman then maybe this will be one of the reason the inflation rate rise up.

[nara1892]

Government need to step up on this since they are the one who can control the price of each basic necessities and if they cannot stop those greedy businessman then maybe this will be one of the reason the inflation rate rise up.

Yes, I agree with this, because I have experienced something like this in the past, including during the Covid period. Yes, many of them hoard a lot of needs so that it causes the prices of these needs to increase, not only that, even at high prices, I find it very difficult to get them.
Now I think the same thing will happen again where greedy people will take advantage of every available situation for their own benefit and don't care about other people. Things like this must be of particular concern to the government so that the same incident does not happen again, because it is detrimental to many people.

[KingsDen]

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.

They can inflate the price and just used the  unfortunate incident like covid or any crisis happening in the world so that they can increase the price of the product which is necessary needed at that time. This is totally bad to the economy since this one really affect everyone since this will initiate for the price of other product to rise up to.

Government need to step up on this since they are the one who can control the price of each basic necessities and if they cannot stop those greedy businessman then maybe this will be one of the reason the inflation rate rise up.

In a country where the economics of the economy is not regulated, in a country where extortion is a normal act, in a country where agencies which are assigned to monitor trade and standardization does not work, either they are being soaked in corruption and bribery, that is the resultant effects.

The retailers always increase the price of products at their wish leveraging on the circumstances such as covid-19 and the recession that is gripping the whole world.
When the retailers suddenly increase the price of the product, the wholesalers will understand that they are making less again than the retailers they will tend to increase their own price. When this happens it will finally fall back to the final consumer who will have a double increments on the price of products they are getting. That is reason  any product you get for $10 today, in few months time you will no longer be able to get that for $10.

Thank my goodness  we have bitcoin were one BTC will be equal to 1 BTC and it is resistant to inflation. I pray that the Bitcoin technology dominates the world very soon so that everybody will enjoy the freedom which I think they deserve

[Yatsan]

Well ofcourse especially if retailers managed to buy or hoard a certain item which has huge demand. But that doesn't mean that wholesalers are taking losses; it is just that their profit is lower than the retailers inspite of putting a bigger capital. Their edge is assured and instant profit over retailers who'd spend longer time to 'dispose' of what they are selling in the market.

Government need to step up on this since they are the one who can control the price of each basic necessities and if they cannot stop those greedy businessman then maybe this will be one of the reason the inflation rate rise up.

Yes, I agree with this, because I have experienced something like this in the past, including during the Covid period. Yes, many of them hoard a lot of needs so that it causes the prices of these needs to increase, not only that, even at high prices, I find it very difficult to get them.
Now I think the same thing will happen again where greedy people will take advantage of every available situation for their own benefit and don't care about other people. Things like this must be of particular concern to the government so that the same incident does not happen again, because it is detrimental to many people.

Hoarding, morally, is not a good thing to do. But if it is about business, that's what a typical business minded person would do. Demand is the key and they will take advantage of something and even contribute to it if it would create a bigger demand simply to generate bigger profit. Unfortunately, this is just how businesses work; taking advantage of any opportunity or even create that opportunity regardless if there will be people to negatively be affected of their action.

[Getmon]

Because the currency being used is the naira, I initially believed I was in the Nigerian channel. Anyhow, until we have a general survey, we cannot totally assume that retailers outperform the wholesalers in terms of profit. The scenario may only be taking place in your area. Or it could be that it only affects the bread industry in your area, whereas there are different profit margins for the other essential commodities. In the event that there is a lot overpricing of bread in your place, perhaps you can report it to your food department. To my understanding, there is a specific price range, particularly for essential goods. 

[Wapfika]

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.

[MoonOfLife]

The factors that make retailers get greater profits than wholesalers because they are free to determine prices, wholesalers certainly have more competitors, while retailers can sell in places that cannot be reached by wholesalers and of course with smaller quantity so it is natural that retailers get more profit high than wholesalers.

Retailers will get a higher price, but that doesn't mean they'll get a higher profit. Retailers cannot sell in bulk like wholesalers, they can only sell in small quantities, so to make a profit they need to sell at high prices. In short, retailers cannot make as much profit as wholesalers and without wholesalers, retailers will also have difficulty sourcing.

[jostorres]

The worst example of this is renting. While inflation may go super high, you can't increase the rent price by law inside the year, so basically we are talking about something that would cause you to lose money over course of a year, and then you can't increase it as much as the inflation, but what the law allows you to. Did you know that there are people who are living in great big apartments in the middle of New York for just a few thousand dollars, when the real value could be as high as 10+ thousand per month.

This is an example from there, it happens in my nation too. Renters are protected by law, but then how could landloards even survive? Why is it ok for you to sell a shoe for higher and higher price, but landlords are exempt from increasing the rent?

[Wong Goblog]

In my opinion, it is normal for retailers to get a larger profit margin than wholesalers, but in general, wholesalers, of course, get a lot of profit accumulatively, and I think this is in accordance with the law of the market that those who are close to the final buyer can sell at a higher price. expensive.

[BigBos]

There is a say that 'the rich gets richer and the poor gets poorer'. Retailers are making more profit than the wholesalers and manufacturer during inflation. The poor always buy from retailers because they are the final consumers, while the rich buys in bulk this means they buy directly from the wholesalers. Last week the bakery in my area closed down,due to inflation in flour price,thinking this will be the solution. There was no bread for three days. After three days,the bakery opened and everybody was happy but this time,the bread price increased with 40 naira. A pack of 6 was sold at 410 naira wholesale price,80 naira for one retail price.This shows that the retailer gets 70 naira profit after selling a pack of 6 which is 480 naira. When the bakery reopened a pack of 6 is sold at 450 naira to the retailer, the retailer now sells 100 per one,i.e 600 for the pack.The wholesaler buys from the bakery at the rate of 360 naira for a pack before shutdown and sells 410 naira, after re-open he buys at 400 to sell at 450 naira.
 

I think the closure of the bakery is not entirely due to rising flour prices, this could just be a marketing strategy to attract people to buy more even though the price is rising, they stop producing bread to make people who are already dependent on their product feel that bread it is rare and very hard to get when manufacturers see very high market demand for their products after production stops after the market feels uneasy because there are no goods is the right time for producers to restart production and increase prices, of course, this is also in realized by the retailers because they are dealing directly with consumers, considering that bread is very rare and many consumers want the bread so that retailers have the opportunity to raise market prices according to their wishes and it is the right time for them to raise prices to take more profit high.

From the unit price, retailers will indeed be more profitable, but those who benefit the most are those with a faster turnover of money, even though they only take a small portion of the market price.

[Cling18]

In my opinion, it is normal for retailers to get a larger profit margin than wholesalers, but in general, wholesalers, of course, get a lot of profit accumulatively, and I think this is by the law of the market that those who are close to the final buyer can sell at a higher price. expensive.

Retailers could sell their products at higher prices compared to wholesalers but that doesn't mean that they are making bigger profits. Their expenses and capital are different as well as their manpower. Wholesalers who are selling their products at cheaper prices could also gain a bigger profit when they're able to sell out bulk orders. Rich gets richer and poor gets poorer isn't always applicable in business when it comes to wholesalers and retailers because they aren't competitors but rather they make the complete flow of the business.

[tjtonmoy]

This has been happening for a long time. Even in my country, they are charging $10 for a product that was only $7/6 a few months ago. And don't even ask about gas price, man. This is all a mess now. 
Here we are making our own food (it's an agricultural country). Yet the government is exporting those to other country and earning money while we still have to pay the higher price to get food.
And those who know that people will buy from them no matter what, they tend to take more advantage. I think it's the problem with the people. They still pay the higher price, hence they are able to sell.
Here's a funny story. In my country, egg's price rise up suddenly and people were furious. So they stop buying eggs for 7 days. Then the price dropped even less than before.

[BRINIRHA]

The difference between wholesalers and retailers is a difference that can be seen immediately. The price offered will also be cheaper than retail sellers. But there is one thing that must be considered, when retailers buy, sometimes buy from wholesalers too, there will be a symbiosis of mutualism that is mutually beneficial to each other. Usually retailers will buy in large quantities so that it is more profitable for the first seller which I then call wholesalers, but those who buy from retailers will definitely not buy the same amount meaning that there will be a longer lag time for retailers to finish their wares.
In calculating the profit calculation it will be very clear that the last seller will benefit more than the first seller.
So what I want to convey here is, the first seller will not get more profit than the last seller, but they can sell more than the last seller. In an economy, I would generally prefer to make a small profit but sell more of my product and be a buyer center retailer, than to make a large profit but have few target customers, or take longer to get my product to market.

so true. Because even though the profits that wholesalers get are a little from each type of product they sell. but their sales are so fast. because retailers always buy a lot at one time purchasing to wholesalers. so small wholesale profits will become large if accumulated over time. because the total goods sold by wholesalers are many times more and faster than retail sales which take longer. and sell in small quantities little by little. and well both are mutually beneficial between retailer and wholesaler. both of them need each other.

[Fesatmas]

In my opinion, it is normal for retailers to get a larger profit margin than wholesalers, but in general, wholesalers, of course, get a lot of profit accumulatively, and I think this is in accordance with the law of the market that those who are close to the final buyer can sell at a higher price. expensive.

We will see things like this from time to time where the retailer will get a bigger profit than the wholesaler or whatever it's called. This is a form of business that is carried out, the farther the goods sold by the factory (change hands), the more valuable the merchandise will be. For example, factory A produces bread and they sell it for say $2 to the first person, the first person will sell more than $2 to the third person, and so on.