whats the difference between wholesale and retail. what does each word mean?
Wholesale prices are the amount that businesses sell merchandise to each other (often for resale). Retail prices are the amount that businesses sell to the public.
Markup is the amount (usually expressed as a percentage) that is added to wholesale prices for retail sale.
Margin is the amount of the retail price that is profit.
For example, lets say a bike shop buys tires for $10 and sells them for $30. In this case the markup is $20 or 200%. Since $20 of the $30 price is profit this is 67% margin.
Lets say the same bike shop buys a bicycle for $200 and sells it for $300. In this case the markup is $100 or 50% and its margin is 33%.
im not sure but I think wholesale means like the orignal market price and retail means like what it's selling for...but I could very well be wrong lol