Bulk purchasing: Difference between revisions

{{Unreferenced|date=January 2009}}

'''Bulk purchasing''' is the purchase of much larger quantities than the usual, for a [[unit price]] that is lower than the usual.

 

 

[[Retailing]] is [[buying]] goods in a wholesale market to sell them in small quantities at higher prices to [[consumers]]. Part of this profit is justified by [[logistics]], the useful distribution function of the retailer, who delivers the goods to consumers and divides those large quantities of goods into many smaller units suitable for many transactions with many small parties of consumers. Retailers can also benefit from [[economy of scale]] to increase profit, just like a wholesaler does.

'''Bulk purchasing''' is when a consumer captures part of the benefits of [[economy of scale]] by doing with the retailer what the retailer does with the wholesaler: paying a lower price per unit in exchange for purchasing much larger quantities. This allows the consumer to satisfy more of his or her demands at a lower total cost by acquiring more [[use value]] per dollar spent.

 

 

==In popular culture==