Why wholesale is different than retail sale ?

We can say that wholesalers are distributors, wholesalers sit on their shop or godown, and retailers come to their shops/godowns to buy the goods / products according to need of their areas.

Now, what are retailers, they are those who sale the products in their areas, they can have shops, godowns or showrooms, but they sell their goods/products to consumers and customers. There is a difference of price between wholesale and retail, wholesale prices are less because of quantity buying, while retail price are a bit higher because of single or some pieces buying.

Wholesaler earn through quantity selling, and retailer earn through single sell.

In many retail stores, wholesale concept creeps on them even though they might not plan to do so.

When you are selling a good product that another retailer, a contractor or just  regular customer is interested to buy big quantities they start to force a better price out of you.  Now you are doing  wholesale.

Add to that, to get better prices from your suppliers, you some times purchase a bigger quantity. Now, you need to move that extra stock quickly. So now you give incentives by giving special reduced prices on big quantity.  Now you are doing wholesale.

However, Bigger businesses some times choose to only do one or the other. You cannot walk into HP and ask them to buy a laptop. They will tell you go to a retail store and buy it from there.

WHolesale: Relatively large amount of goods are sold. So they offer discount on the whole amount as good are purchased in bulk. Price is low compared to Retail price. The purchase is done from a wholeseller

Retail: Relatively less amount of goods are purchased. Retail Price is comparatively higher as the retailer purchases the goods from wholeseller than adds up his Mark up profit on the Cost price.

Goods are purchased from a retailer.