7 Reasons Why Wholesale Price vs Retail Price Matters for Exporters

If you are an exporter, you need to know the difference between wholesale price and retail price. Wholesale price is the price you charge to your distributors or retailers, who then sell your products to the end customers. Retail price is the price that the end customers pay for your products.

Why does this matter? Here are seven reasons why you should pay attention to wholesale price vs retail price as an exporter.

Wholesale price affects your profit margin. As an exporter, you want to make sure that your wholesale price covers your production costs, shipping costs, taxes, tariffs, and other expenses, as well as leaves you with a reasonable profit margin. If your wholesale price is too low, you may not be able to cover your costs or make enough profit. If your wholesale price is too high, you may lose customers to your competitors who offer lower prices.

Wholesale price affects your market share. As an exporter, you want to expand your market share and reach more customers in different countries. To do that, you need to offer competitive wholesale prices that attract distributors and retailers who can sell your products to their local markets. If your wholesale prices are too high, you may limit your market potential and miss out on opportunities to grow your business.

Wholesale price affects your brand image. As an exporter, you want to build a strong brand image that reflects the quality and value of your products. Your wholesale price is one of the factors that influences how your brand is perceived by your distributors, retailers, and end customers. If your wholesale price is too low, you may create a perception that your products are cheap or inferior. If your wholesale price is too high, you may create a perception that your products are overpriced or inaccessible.

Retail price affects your customer satisfaction. As an exporter, you want to satisfy your end customers and make them loyal to your brand. Your retail price is one of the factors that influences how your customers feel about your products and their purchase decision. If your retail price is too low, you may undermine the perceived value of your products and reduce customer loyalty. If your retail price is too high, you may discourage customers from buying your products or make them feel cheated.

Retail price affects your customer feedback. As an exporter, you want to receive positive feedback from your customers and use it to improve your products and services. Your retail price is one of the factors that influences how your customers rate and review your products online or offline. If your retail price is too low, you may attract customers who are not interested in quality or have unrealistic expectations. If your retail price is too high, you may attract customers who are more critical or have higher standards.

Retail price affects your word-of-mouth marketing. As an exporter, you want to benefit from word-of-mouth marketing and get more referrals from your satisfied customers. Your retail price is one of the factors that influences how your customers talk about your products to their friends, family, and social media followers. If your retail price is too low, you may not generate enough buzz or excitement about your products. If your retail price is too high, you may generate negative word-of-mouth or complaints.

Retail price affects your repeat sales. As an exporter, you want to increase your repeat sales and retain more customers over time. Your retail price is one of the factors that influences how often and how much your customers buy from you again. If your retail price is too low, you may not encourage repeat purchases or upselling opportunities. If your retail price is too high, you may deter repeat purchases or cross-selling opportunities.

As you can see, wholesale price vs retail price matters a lot for exporters who want to succeed in the global market. By setting the right prices for both levels of distribution, you can optimize your profitability, competitiveness, reputation, customer satisfaction, feedback, marketing, and sales.

References:

https://www.export.gov/article?id=How-to-Price-Your-Product-for-Export

https://www.trade.gov/knowledge-product/pricing-your-product

https://www.business.com/articles/wholesale-vs-retail-pricing/