Saturday, November 12, 2011

Wholesale and retail

Wholesalers sell products at lower prices and in larger quantities to retailers, who sell them at higher prices and in smaller quantities to customers. Customers usually can't buy wholesale - you have to be a business to do so.

I wonder how this system came about? Because if you think about it, it's really weird and arbitrary. If such a system didn't exist, could you imagine being the first person to invent it? "Okay, you can buy my widgets at very low prices, but you have to buy at least a thousand of them, and you can only do so if you have a store set up to sell them to other people." That would never work! But somehow it has worked, and it adds this whole extra layer to the economy.

And why do you have to be a business to buy wholesale anyway? If an individual wants to buy a whole pallet of toilet paper, why on earth would a wholesaler care?

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