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I am sure that you have heard about companies offering rebates on purchases. A Rebate is simply a sales promotion technique in which the customer is offered a return on the price of purchased goods, whether in single units or in bulk. This applies or can apply to any purchase, be it electronics, clothing, merchandise, you name it. This type of promotion helps to boost sales as customers are normally happy to get something back from the merchants they do business with. However, there are times when certain terms have to be met in order for a rebate to be applied.
An example of that would be of a cell phone dealer offering a 45% rebate on phones purchased before a certain date or that the customer has to fill out a one year plan with a cellular provider to get 100% rebate on cell phones. Another example would be of a clothing wholesaler offering 25% rebate on all winter clothes that are bought during summer. In all three cases, there were certain stipulations that had to be met in order for the customer to get a rebate.
Many people get confused when they hear the words retail and wholesale. As far as many are concerned they are both the same since many businesses that are engaged in the sale of goods provide their goods at both wholesale and retail prices. To clear the air, let us define who a retailer and wholesaler are.
A Retailer is someone who does not buy goods in bulk and sells single items of goods at the same price no matter the amount that is bought. So if you buy 3 tins of milk valued at $40 each, then you would have to pay $40 x 3 = $120. The same would apply if you bought 100 tins of milk. You would have to pay $400. A Wholesaler, on the other hand, buys products in bulk for the sole purpose of re-selling them. Because of making his purchase in bulk, a wholesaler is able to sell his goods back at a cheaper cost than a retailer. Looking back at the same milk example from before, if you bought 3 tins of milk from a wholesaler, you may get them for anywhere between $100 and $110. So you save when you buy from a wholesaler.
