Bulk purchasing
Encyclopedia
Bulk purchasing is buying products in large quantities at a lower price per item, or unit price
, than is available for smaller quantities. Wholesale
is selling
or related to selling goods in large quantities for resale to the consumer
. Retailing
is buying products in bulk at wholesale, and selling them in small quantities at higher prices.
Unit price
Average prices represent, quite simply, total sales revenue divided by total units sold. Many products, however, are sold in multiple variants, such as bottle sizes. In these cases, managers face a challenge: they must determine “comparable” units. Average prices can be calculated by weighting...
, than is available for smaller quantities. Wholesale
Wholesale
Wholesaling, jobbing, or distributing is defined as the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services...
is selling
Selling
Selling is offering to exchange something of value for something else. The something of value being offered may be tangible or intangible. The something else, usually money, is most often seen by the seller as being of equal or greater value than that being offered for sale.Another person or...
or related to selling goods in large quantities for resale to the consumer
Consumer
Consumer is a broad label for any individuals or households that use goods generated within the economy. The concept of a consumer occurs in different contexts, so that the usage and significance of the term may vary.-Economics and marketing:...
. Retailing
Retailing
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
is buying products in bulk at wholesale, and selling them in small quantities at higher prices.