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Wholesale Price

Definition

The price a retailer or distributor pays the manufacturer for product before retail markups, promotional discounts, or trade allowances. Wholesale price forms the basis for distributor markup and retailer margin.

How It's Calculated

Manufacturer list price − applicable discounts (e.g., off-invoice).

Example

A manufacturer sells a case of granola bars to distributors for a wholesale price of $18 after a $2 off-invoice promotion.

 

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