Define Wholesale Price
Wholesale price is the price paid for each unit of product, in a batch of hundreds or even thousands of units. Wholesale prices are generally lower than retail prices and are done so to make a profit on the resale, whereas goods bought at retail are for used for consumption and not profit.
Other People Are Reading
-
Retail and Wholesale
-
Important differences between wholesale and retail are volume, price and parties involved. In wholesale, goods are sold in bulk at wholesale prices for commercial purposes. Also, wholesale involves business concerns with commercial objectives and not direct customers or end users.
Inflation
-
The difference between the wholesale price and the retail price is the markup. Both wholesale inflation and retail inflation are important measures of an economy. Governments measure wholesale inflation year to year to determine how it affects retail inflation.
-
Producers Price Index
-
The producers price index (PPI), previously known as the wholesale price index, measures wholesale inflation in the U.S. The index is used to measure wholesale price changes of a representative basket of commodities, traded between corporations.
Calculation
-
The PPI is measured by tracking the price movements of over 2,400 hundred commodities individually. The weighted-average of the data is taken into account to compute PPI.
Commodity Groups
-
The PPI monitors wholesale price changes of commodities from different industries. Commodity groups including agriculture, mining, quarrying, imports and exports are commonly used.
-
References
- Photo Credit warehouse image by Niki from Fotolia.com
