I've found wholesaling to be a whole different ball game. Many people don't purchase wholesale solely on pricing. There are MANY other factors to justify your pricing and keep your profit levels where you feel comfortable.

Retailers will buy your product based on:
Marketability
Terms
Sellability
Price
Product reliability
Quality

Probably not in that order, but your retailer has already put them in order in his mind. If you cannot compete on cost, then sell him on something else.

Bottom line, the retailer is buying based on SELLING, not consuming.