Do you Know Four Kinds of Price About Wholesale

Cost price

Cost price is the lowest. It means all the cost of this product from material purchase, production process to the finished product.

Ex-factory price

Ex-factory price refers to the price which the manufacturer gives. For example, the product cost is 10 usd, the manufacturer's sales price is 15 usd, and then the 15 usd is ex-factory price. Manufacturers get profit through the price difference between ex-factory price and the cost price.

Distribution price and wholesale price

The relationship between them is relative. Distribution is a kind of new marketing mode, and wholesale is backward. So usually wholesalers profits are lower than distributors, because wholesalers usually buy large quantities of the goods first no matter whether people will buy, and then to go out to sell. Usual price will be very low, so profits are relatively less. From the above business model, we can know that the distributors' profits will definitely more than wholesale. So we can say that the distribution price is more than the wholesale price.

Distributors' business mode:

A manufacturer's salesman negotiates a contract of USD 10 million, but users said they didn't have so much money and need the installment. The manufacturers cannot accept such payment terms, because manufacturers also don't allow funds accounted for pledge. (if the user can settle accounts on time, they can directly order from the manufacturer) at this time. Distributors will play a role, because they have much money and not afraid of pledging. Manufacturers will find distributors and tell them the contract will deliver the goods from them.

Then distribution will use this way of placing an order from the manufacturer, and then adding some money to these things and sell to the user. Then they will get money from the user by installment. Distributors generally do not purchase cargo first.

Wholesalers' business mode:

First they buy a lot of goods from some manufacturers and put them in the warehouse. And then they make their salesmen go out for business. When they get successful negotiation, they will add money and sell the goods to the user. They are generally settled accounts on time.

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Four Kinds of Price Which Wholesale Need to Get in Touch With