> For the complete documentation index, see [llms.txt](https://docs.samita.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.samita.io/samita-wholesale-b2b/overview/wholesale-pricing-vs-retail-pricing.md).

# Wholesale pricing vs Retail pricing

This page explains the difference between wholesale and retail pricing, so you know which one to set up first in the app.

## What is wholesale price?

**Wholesale pricing is what you charge buyers — typically retailers or resellers — who purchase your products in large volumes.**

The goal of wholesale pricing is to earn a profit by selling goods at a price higher than what they cost you to make or source. For example, if it costs $5 in labor and materials to make one product, you might set a wholesale price of $10, giving you a $5 gross profit per unit.

## What is retail price?

**The retail price is the final selling price shown to everyday shoppers.**

Retail customers don't buy the item to resell it — they buy it to use it. When setting a retail price, the goal is to maximize your profit while staying at a price customers are willing to pay.

## What's the difference?

{% columns %}
{% column %}
**Retail price**

The final selling price set by you for everyday shoppers.
{% endcolumn %}

{% column %}
**Wholesale price**

Typically much lower than retail price, since buyers get a discount in exchange for purchasing in bulk.
{% endcolumn %}
{% endcolumns %}

<figure><img src="/files/vYTxwy7yYx7nROzGutlg" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
Ready to set this up? See [Create a wholesale pricing](/samita-wholesale-b2b/wholesale-pricing/create-a-wholesale-pricing.md).
{% endhint %}

> ### **Need support?**
>
> If you do encounter any difficulty while proceeding these steps, don’t show any hesitation to contact us promptly via the email address [support@samita.io](https://help.samita.io/support@samita.io)


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