How does the buying at wholesale prices and selling retail prices help you make a profit?
Well its really simple profit is equal to selling price- cost of good sold. therefore increasing profit comes from several actions, the cheaper you buy(wholesale) the more profit. The more expensive you sell (retail) the higher the profit. The next factor is volume, the more you sell the more profit you will receive thus all retail business tries to make the largest difference in price between wholesale and retail price while maintaining high sales volumes
since you are probably a kid heres and example
buying 20 ipods for 100 each (wholesale) and selling them for 200 each retail creates 100 profit per each ipod.
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