okmatewanker

Incomplete picture, need prices on the transport of the wheat, processing it into flour for bread use, transporting the flour to the bakery, bakery electric to run ovens, labor to run ovens, machines (probably) that slice and bag the bread, and trucks/drivers to distribute it to retailers, and the retailer's labor/overhead. All of that factors in the price from "wheat" to "bread," sure nobody in that chain is selling for a loss and they all make profit, but even if everyone operated at cost it's still going to be more expensive in "bread" state than "wheat" state for the simple fact that even if everyone "does it for cost" it will still add more to do more things to the product.

If he said "we sell wheat for 25p/kg and the store resells that same package of wheat for 1.40," he may have a point. Even then the point is "sell directly to end users and cut out the middle man then." Hell if buying weed has taught me one thing it's that the more people touch it the more expensive it gets, always get as close as you can to the distributor and buy in bulk.