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wholesale price

Contributor(s): Matthew Haughn

Wholesale price is the price charged for a product as sold in bulk to large trade or distributor groups as opposed to what is charged to consumers.

The wholesale price is the sum of a given product’s cost price plus the manufacturer’s profit margin. Wholesale benefits include mass shipping and volume discounts to group buyers, which allow distributors to make a profit. Similarly, a manufacturer’s suggested retail price (MSRP) is calculated to leave room for retail markup. A MRSP is often 2.5 to 3 the wholesale price. A list price or retail price may be set at the MSRP or somewhat lower than that value.

In some countries, the average wholesale price of goods is tracked as a measure called wholesale price index (WPI) as a metric for tracking inflation.

This was last updated in April 2016

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