How does the wholesale PCs market work?
Following, we are going to give you real insight into how the whole market of PC works. This will hopefully give you an advantage when you enter the market to buy something for yourself.
The Basics of Wholesale
Wholesalers buy wholesale PCs in bulk. Therefore, they get a nice discount from the manufacturer. In return, the wholesaler shares a bit of this discount with the retailers. Wholesalers often deliver the goods directly to retailers. Therefore, it’s another reason for the retailer to buy from a wholesaler.
Wholesalers have the economy of scale for almost everything. In some cases, the manufacturer refuses to sell directly to retailers thanks to volume and logistics issues.
Even if the retailer can buy from the manufacturer, they are still responsible for packing, transportation, loading and unloading, as well as their included costs. This is not an easy task, and most retailers leave it to wholesalers. Businesses pay the wholesaler a bit extra for handling these issues.
A profit margin of the product determines the difference between expense and sold price. The expense is a whole price given to supplier or creating the product yourself. Instead if you sell something for $50 that cost you $30 to the manufacturer, $20 is your profit. The calculation is different when it comes to the wholesale margin.
Wholesalers thrive on a different structure. They calculate retail by dividing the expense by 1 minus the profit margin percent if a product cost you $50, and you want to earn 40% profit, then you better divide the price of 0.6. Mind your other expenses and effort. Divide the price of every product with 0.60. It’s a prolific venture. As you can see, the calculation is a bit different.