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The concept is not new wholesale purchases . Leverage obtained from bulk purchases or ” economies of scale ” was first documented two thousand years ago . This concept has been applied universally . In this article , we will discuss the illustration of its use in the procurement of clothing . The benefits of buying wholesale clothing is quite clear – consumers can save money .Let us trace the path taken by the clothes before they reach the final consumer . Garment unit produces clothing and supplies sales to distributors . These distributors in turn supply wholesale . Wholesale clothing then supplying to the retail store where the end customer to buy . At each step of the chain , significant transaction costs are added to the cost of manufacture . The end result is that customers have to pay more so that the agents get their commission transactions . Eliminating clothing wholesale trade agents and thus the results of the cost benefit .
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