Pricing

Both retailers and wholesalers seek to get the best price possible when buying products, but wholesalers have a stronger impact on pricing.

Because wholesalers purchase in large quantities, obtaining the best unit pricing has a big impact on their ability to profit. When it comes to selling to stores, the lower the price they spend on items, the more profit they may make.

If a product distribution deals category is highly competitive, it may be more competitive by delivering reduced prices to retailers. They have more leeway to undercut competitors while still generating a profit if they pay less upfront for products.