Why Wholesale Buyers Are Moving Online

The Top B2B Ecommerce Platform to Scale Your Wholesale Business

Modern B2B ecommerce platforms streamline complex wholesale transactions by integrating automated purchasing, tailored pricing, and real-time inventory management. These digital ecosystems empower businesses to build stronger supplier relationships while reducing manual order processing costs. Ultimately, they transform traditional procurement into a seamless, data-driven experience that drives operational efficiency and scalable growth.

Why Wholesale Buyers Are Moving Online

The shift toward digital procurement is accelerating, as wholesale buyers increasingly value speed, transparency, and efficiency over traditional handshake deals. B2B eCommerce platforms now offer real-time inventory visibility, dynamic pricing, and automated reordering, eliminating the friction of phone calls and paper catalogs. Buyers can compare suppliers instantly, access detailed product specs, and track orders from any device. This digital leap cuts procurement costs by up to 30% while slashing turnaround times from days to hours. The pandemic permanently altered purchasing habits, but the real driver is data—smart dashboards reveal buying patterns, helping companies negotiate better terms. For wholesalers, failing to build a robust online storefront means losing relevance. Omnichannel readiness isn’t just an option; it’s the new baseline for growth in a market where convenience dictates loyalty.

Shifting Expectations from B2C Experiences

Wholesale buyers are shifting online because it saves serious time and money. Instead of making multiple phone calls or traveling to trade shows, you can compare stock, negotiate bulk discounts, and place orders from your desk in minutes. Digital wholesale platforms streamline inventory sourcing by offering instant access to global suppliers, real-time pricing, and automated reordering. Key reasons for the move include:

• Lower operational costs – no travel or physical showroom expenses.
• Transparent pricing – compare thousands of vendors at a glance.
• Faster restocks – B2B portals sync with warehouse systems for quicker fulfillment.

This shift isn’t just about convenience—it’s about staying competitive in a market that expects speed and flexibility.

Cost and Efficiency Gains in Digital Procurement

Wholesale buyers are increasingly shifting to digital platforms to streamline procurement and reduce costs. Online B2B marketplaces offer real-time inventory visibility, enabling faster decision-making and eliminating the delays of manual ordering. Key advantages include:

• Access to a broader supplier base without geographic limits
• Automated reordering and dynamic pricing tools
• Lower overhead by cutting travel and paper-based processes

Platforms also provide transparent data on product performance, which helps buyers compare options efficiently. As logistics and payment systems mature, the convenience and scalability of online wholesale channels solidify their role as a primary sourcing method for modern businesses.

Core Differences Between Retail and Wholesale Digital Storefronts

While both channels facilitate online sales, the core difference between retail and wholesale digital storefronts lies in their audience and pricing logic. A retail storefront is built for direct-to-consumer transactions, prioritizing a streamlined, persuasive user experience and single-unit B2C ecommerce sales. In contrast, a wholesale storefront operates as a B2B platform, requiring features like tiered pricing, bulk order minimums, and account-based access. The most critical distinction for scaling a brand is that a wholesale portal must protect profit margins for both you and the reseller, often hiding retail prices and displaying custom discounts. Prioritizing this structural transparency ensures long-term partner trust and reduces operational friction, making it an essential focus for any expert-led digital strategy.

Complex Pricing Tiers and Customer-Specific Visibility

Retail digital storefronts are built for one-off, high-margin transactions, prioritizing a seamless, discovery-driven user experience that converts individual browsers into buyers. In contrast, wholesale platforms are optimized for volume, efficiency, and repeat business, targeting professional buyers who expect bulk pricing, tiered discounts, and account-specific catalogs. B2B wholesale storefronts demand robust authentication and complex order management systems.

The core difference lies in their user journeys. Retail sites use visual merchandising and one-click checkouts to minimize friction, while wholesale portals integrate purchase order workflows, minimum order quantities, and net payment terms.

Retail sells experience; wholesale sells efficiency. A single wholesale account often generates more revenue than hundreds of retail customers.

To clarify the operational split:

• Pricing: Retail uses fixed, dynamic, or promotional pricing; wholesale uses tiered, contract-based, or negotiated rates.
• Catalog: Retail shows a broad, curated selection; wholesale restricts to approved products with detailed spec sheets.
• Checkout: Retail aims for speed (guest checkout, few clicks); wholesale requires logged-in accounts, tax exemptions, and shipping quotes for pallets.

Handling Bulk Orders and Minimum Quantities

Retail digital storefronts prioritize individualized transactions, offering curated product selections, detailed descriptions, and one-click purchasing for end consumers. In contrast, wholesale platforms focus on bulk ordering, volume-based pricing, and multi-tiered user permissions for business buyers. B2B ecommerce functionality fundamentally differs, as wholesale sites integrate complex approval workflows, tax-exempt calculations, and real-time inventory syncing across warehouses. The user interface also diverges: retail design emphasizes visual appeal and seamless checkout, while wholesale interfaces prioritize quick reorder lists, account-specific pricing tables, and downloadable purchase history. These structural variances shape everything from payment gateways to customer support models.

Multi-User Account Structures and Approval Workflows

Retail and wholesale digital storefronts cater to completely different audiences, which shapes everything from pricing to the checkout process. Retail sites are built for one-off buyers, so they often highlight flashy visuals, product reviews, and smooth, impulse-driven cart flows. Wholesale stores, however, are designed for businesses making bulk purchases, so they focus on tiered pricing, minimum order quantities, and account-based logins. Business-to-business (B2B) site design prioritizes efficiency over flash. For instance, wholesale storefronts often require customer approval, hide prices from general visitors, and use quick reorder tools, while retail sites push discounts, one-time coupons, and free shipping thresholds. The core difference boils down to intent: selling one item at a high margin versus selling many items at a lower margin per unit.

Must-Have Features for a Robust Wholesale Commerce System

When Ella took over her family’s distribution business, she realized manual invoicing was drowning her team. A robust wholesale commerce system must start with **real-time inventory synchronization** to prevent overselling across multiple warehouses. Ella’s platform also needed tiered pricing for bulk buyers and automated reorder points. The most critical feature emerged when a storm delayed shipments: integrated logistics tracking that notified customers instantly.

True resilience in wholesale commerce comes from transparent, automated supply chain visibility that builds trust even during crises.

Finally, she insisted on **customizable account management** for B2B clients, allowing them to view past orders and request quotes without human intervention. For Ella, the system’s true power wasn’t just selling—it was weaving efficiency into every transaction.

Real-Time Inventory Synchronization Across Channels

For a wholesale commerce system to really work, it needs to handle complex pricing and customer tiers without breaking a sweat. Key features for a scalable B2B marketplace include custom price lists per buyer, bulk order templates that save time, and real-time inventory visibility. You also absolutely need granular user roles so your sales team and clients see different prices. Don’t forget self-service account management, plus integration with your ERP for seamless order-to-cash workflows. It should also support payment terms and credit limits, not just credit cards. Without these, your wholesale operations will quickly turn into a headache.

Custom Catalogs and Product Assortment Management

A wholesale system isn’t just software; it’s the nervous system of your entire operation. Without real-time inventory synchronization, you risk overselling stock that doesn’t exist, a cardinal sin in B2B. The dashboard must first feel like a control room, pulsing with live data across warehouses. You need tiered customer-specific pricing that auto-applies as soon as a buyer logs in, erasing the chaos of manual quotes.

If your system can’t handle a bulk order while freezing stock for another client, it isn’t a wholesale system—it’s a time bomb.

Then, integrate automated reorder points and an order management tool that flags credit limits before shipment. Finally, ensure the platform supports bulk uploads and custom catalogs. Without these bones, the business feels fragile.

Integrated Payment Terms and Credit Limit Controls

A truly robust wholesale commerce system must prioritize B2B-specific functionality over retail adaptations. Streamlined bulk order management is non-negotiable, enabling rapid processing of high-volume purchases with tiered pricing and minimum quantity thresholds. The platform should integrate seamless account management tools, allowing buyers to view custom catalogs and negotiate contract-based rates directly. Reliable inventory synchronization across channels prevents costly overselling, while automated reorder points ensure supply continuity. Payment flexibility—from net terms to invoice financing—closes deals faster. Finally, granular user permission controls protect sensitive data while empowering sales teams. Without these pillars, your wholesale operation risks lost revenue and frustrated clients.

How Personalization Drives Repeat Purchases

Personalization transforms the shopping experience by making customers feel seen and understood. When a brand remembers your size, suggests items based on past buys, or sends a birthday discount, it builds a sense of loyalty. This tailored approach is a powerful customer retention strategy, as it reduces the overwhelming choice of browsing—instead, it shows you what you’re most likely to love. For example, if you bought running shoes, a follow-up email with moisture-wicking socks practically feels like a favor. That convenience and relevance directly increase repeat purchase rates, because you trust the brand “gets” you. In short, personalization turns a generic store into your personal stylist, making it easier to come back again and again.

Q&A
Q: Does personalization work for small businesses?
A: Absolutely. Even simple gestures like addressing a customer by name or recommending a favorite product can boost loyalty and sales.

Tailored Product Recommendations Based on Order History

Personalization transforms casual buyers into loyal repeat customers by making every interaction feel uniquely relevant. When brands leverage browsing history and purchase data to serve tailored recommendations, they reduce decision fatigue and accelerate repurchase behavior. Data-driven customer retention hinges on this psychological connection—it signals that a brand understands individual needs. Consider how this works:

• Personalized emails with product suggestions boost click-through rates
• Dynamic website content highlights items customers actually want
• Customized loyalty rewards make shoppers feel valued

Relevance is the shortcut to habit—once a brand predicts preferences, customers stop shopping around.

This approach consistently delivers higher average order values and shorter reorder cycles, turning transactional relationships into ongoing preferences.

Dynamic Pricing and Contract-Specific Discounts

Personalization motivates repeat purchases by making customers feel uniquely understood. Tailored product recommendations directly align with individual preferences, reducing search time and increasing convenience. When a brand remembers past choices and anticipates future needs—such as suggesting refills or complementary items—it builds efficiency into the shopping experience.

This targeted approach fosters emotional loyalty through relevance. For example:

• Behavioral triggers (e.g., “You bought X, you may like Y”) prompt timely re-engagement.
• Personalized offers (e.g., birthday discounts) create exclusivity and urgency.
• Customized emails showing previously browsed items recover abandoned carts.

When a brand remembers a customer’s name and needs, it transforms a transaction into a relationship.

Ultimately, personalization shifts the customer’s mindset from one-off buying to ongoing brand reliance, as each interaction feels less like marketing and more like service. This consistency drives higher lifetime value and retention.

Saved Carts, Quick Reordering, and PunchOut Integrations

When a brand remembers your name, your size, or that you only drink oat milk lattes, the shopping experience transforms from a transaction into a relationship. This tailored attention builds a powerful emotional connection, turning a one-time buyer into a loyal regular. The core driver is personalized customer experience, which makes shoppers feel understood and valued, reducing the effort needed to find what they want. Key triggers for repeat purchases include:

• Curated product recommendations that feel like a friend’s suggestion.
• Personalized email offers based on past browsing or purchase history.
• Exclusive loyalty rewards that acknowledge individual preferences.

The result is a seamless, predictive journey where the brand anticipates needs, making each return visit both convenient and emotionally satisfying.

Streamlining the Order-to-Cash Cycle

In the cluttered office of a mid-sized distributor, Maria watched as her team manually cross-checked purchase orders against invoices for the hundredth time that week. The entire order-to-cash cycle was a labyrinth of spreadsheets, approval bottlenecks, and delayed payments. Frustrated, she championed a unified digital platform that automated everything from order capture to final reconciliation. The change was immediate: customer onboarding errors vanished, invoicing became instant, and the dreaded 45-day payment terms shrank to two weeks. Cash flow, once a trickle of anxiety, became a steady, predictable stream. Maria’s team finally had time to strategize growth instead of chasing receipts. By implementing this streamlined system, the company achieved true financial operational efficiency, turning what was once a warren of data into a clear, profit-driving path.

Automated Invoicing and Purchase Order Matching

Streamlining the order-to-cash cycle requires automating manual handoffs between order management, inventory, and billing systems to eliminate data silos. A strong focus on invoice accuracy via automated validation prevents payment delays and reduces dispute resolution time. To optimize cash flow, prioritize these actions:

• Integrate real-time inventory checks to prevent backorders.
• Use automated credit checks to reduce risk before order fulfillment.
• Implement e-invoicing and payment portals for faster remittance.

Q: What is the quickest way to improve cash conversion?
A: Enforce automated dunning and offer early-payment discounts. Even a 2% discount can accelerate collections by 15 days.

Monitor cycle time weekly, targeting under 72 hours from order to cash application.

Seamless ERP and CRM System Connections

When Sarah took over as operations lead, she saw how manual approvals choked their order-to-cash cycle, delaying revenue recognition by weeks. By automating invoice generation and integrating payment gateways directly with their ERP, she slashed turnaround time dramatically. Order-to-cash automation unlocked real-time visibility, letting her team spot bottlenecks in credit checks or fulfillment before they stalled cash flow. The result was a seamless flow from order placement to payment posting, with fewer disputes and happier customers. Sarah’s story proves that streamlining this cycle isn’t just about speed—it’s about building a predictable, profitable engine for growth.

Shipping Rate Calculation and Logistics Integrations

To streamline the order-to-cash (O2C) cycle, focus on eliminating friction between sales, fulfillment, and finance. Automating invoice generation and payment reconciliation is the keystone for reducing days sales outstanding (DSO). Implement integrated platforms that trigger billing immediately upon shipment confirmation. Prioritize these key actions:

• Unified Data: Connect CRM and ERP systems to prevent order entry errors and delays.
• Smart Credit Checks: Automate real-time credit limit verification at the point of sale.
• Digital Payments: Offer multiple payment gateways and set up automated dunning for overdue accounts.

Finally, audit your process quarterly for bottlenecks like manual approval chains. The result is faster cash flow, fewer disputes, and a seamless customer experience that directly improves working capital efficiency.

Security and Compliance Considerations

When building any system, security and compliance aren’t just boxes to check—they’re the backbone of user trust. Think of it like locking your front door: you need strong passwords, encryption for data at rest and in transit, and regular vulnerability scans to keep out intruders. On the compliance side, regulations like GDPR or HIPAA dictate how you handle sensitive info, from consent to prompt deletion. Ignoring these can lead to massive fines and reputation damage. A good rule of thumb is to adopt a “privacy by design” mindset, where safety features are built in from the start, not added as an afterthought. This approach not only protects your users but also improves your site’s search engine optimization, as secure sites often rank better. Ultimately, a little foresight here saves a lot of headache later.

User Role Permissions and Data Segmentation

Security and compliance considerations are critical for protecting sensitive data and ensuring regulatory adherence. Data encryption at rest and in transit serves as a fundamental safeguard against unauthorized access. Key measures include:

• Implementing role-based access controls (RBAC) to limit data exposure.
• Conducting regular vulnerability assessments and penetration testing.
• Maintaining audit logs for traceability and incident response.

Compliance frameworks like GDPR, HIPAA, or SOC 2 dictate specific policies for data retention, breach notification, and user consent. Organizations must enforce strict access management, encrypt communications via TLS protocols, and validate third-party vendor compliance. Failing to address these areas can result in legal penalties and reputational damage. Continuous monitoring and automated compliance checks help mitigate risks while maintaining operational efficiency.

Meeting Industry-Specific Regulatory Standards

When diving into data management, you can’t skip security and compliance best practices. These guardrails protect sensitive info from breaches and keep you on the right side of laws like GDPR or HIPAA. Think of it as locking your digital doors—strong encryption, strict access controls, and regular audits are non-negotiable. A single slip can lead to fines or reputational damage, so treat compliance as a routine check, not a one-off.

• Data encryption ensures files stay scrambled during storage and transfer.
• Access management https://stafir.com/ limits who sees what, using role-based permissions.
• Audit logs track every change for transparency and troubleshooting.

Q: Do small businesses need these measures too?
A: Absolutely—hackers often target smaller firms with weaker defenses. Even basic steps like multi-factor authentication reduce risk.

Protecting Payment Data and Corporate Credentials

Enterprise security and compliance are non-negotiable for safeguarding sensitive data. Robust encryption protocols, such as AES-256, protect information at rest and in transit, while strict access controls like role-based authentication prevent unauthorized breaches. Adherence to frameworks like GDPR, HIPAA, or SOC 2 ensures legal and ethical handling of user data, turning regulatory burdens into trust-building advantages. Automated compliance monitoring tools scan for vulnerabilities in real-time, flagging misconfigurations before they become liabilities. Without a dynamic, layered approach—combining proactive threat detection with periodic third-party audits—organizations risk costly fines and irreparable reputational harm. Prioritizing these practices transforms security from a checkbox into a competitive edge.

Scaling Your Digital Wholesale Operation

To truly scale your digital wholesale operation, you need to stop doing everything manually and start leaning into automation and integration. The real game-changer here is optimizing your B2B storefront for a self-service experience, letting buyers log in, see their custom pricing, and place bulk orders without tying up your sales team. Pair that with a solid ERP or inventory management system that syncs in real-time, so you never oversell stock. Remember, scaling isn’t just about adding more customers; it’s about handling more volume without the chaos. Focus on efficient order routing and setting clear minimums to protect your margins. Once your backend flows smoothly, you can scale faster than you ever thought possible.

Handling High-Volume Traffic and Large Product Catalogs

Scaling a digital wholesale operation requires automating order management and integrating real-time inventory syncing across platforms. Streamlining B2B ecommerce workflows unlocks the capacity to handle higher order volumes without hiring additional staff. By leveraging API-driven connections with your ERP and adopting dynamic pricing rules, you eliminate manual errors and speed up fulfillment. Bulk uploads, tiered discounts, and self-service customer portals let buyers place larger orders around the clock. The result is a lean, responsive system that supports rapid growth.

Automation doesn’t just save time—it multiplies your capacity to scale without proportional cost increases.

To maintain momentum, focus on these key levers:

• Centralized inventory visibility across all sales channels.
• Automated reorder points triggered by demand patterns.
• Customized pricing catalogs for each wholesale account.

Multi-Language and Multi-Currency Support for Global Buyers

Scaling your digital wholesale operation demands a strategic shift from manual processes to automated systems that handle increased order volume without proportional overhead. This growth phase requires integrating your e-commerce platform with real-time inventory management, enabling bulk pricing tiers, and deploying a self-service portal for recurring clients. Prioritize streamlining your B2B checkout flow to reduce friction, as speed and accuracy directly impact repeat business. Automated B2B wholesale fulfillment is the cornerstone of sustainable expansion, eliminating errors from manual data entry and accelerating turnaround times. Consider implementing tiered shipping options and a centralized dashboard for tracking all accounts.

Growth without automation is just adding complexity to chaos.

Finally, train your team to analyze performance metrics from this infrastructure, allowing you to predict stock needs and optimize logistics before bottlenecks occur.

Choosing a Headless or Composable Architecture

Scaling your digital wholesale operation means moving beyond manual spreadsheets and fragmented systems. The key is to streamline order management with an integrated eCommerce platform that connects your inventory, sales channels, and shipping in real time. Automate repetitive tasks like invoicing and inventory updates, and set clear minimum order quantities to protect your margins. Even small tweaks to your checkout flow can cut processing time by hours each week. Use your data to spot which products and customers drive repeat business, then focus your resources there. As you grow, test adding a B2B membership tier or bulk discounts to encourage larger, more predictable orders—just keep operations lean and your team aligned.

Measuring Success: Key Performance Indicators

Measuring success relies on a clear framework of Key Performance Indicators (KPIs), which are quantifiable metrics tied directly to strategic objectives. These indicators provide an objective basis for evaluating progress, whether in business, project management, or personal development. Effective KPIs follow the SMART criteria—specific, measurable, achievable, relevant, and time-bound—ensuring they offer actionable insights rather than vague data. For instance, a company might track customer acquisition cost alongside net promoter score to gauge both efficiency and customer satisfaction. By regularly monitoring these metrics, organizations can make informed decisions, identify areas for improvement, and align team efforts with overarching goals. Ultimately, selecting the right KPIs is crucial, as they transform raw data into a narrative of performance and growth.

Average Order Value and Reorder Rate

Key performance indicators transform vague ambitions into measurable outcomes. Actionable metrics like conversion rates and customer acquisition cost provide the hard data needed to optimize strategies and allocate resources effectively. Success is not an opinion; it is a calculation tracked through retention rates, revenue per user, and time-to-value. These figures expose weaknesses and validate wins, turning guesswork into a tactical advantage. Ignoring KPIs leaves you navigating blind; embracing them forces accountability and fuels tangible growth.

Customer Acquisition Cost for Wholesale Buyers

In a fledgling company’s first quarter, success felt as intangible as morning fog—until the team mapped its journey with three key performance indicators. First, they tracked customer acquisition cost, watching every marketing dollar spent as a seed planted in rocky soil. Second, monthly recurring revenue became their heartbeat, a steady rhythm against quarterly anxiety. Third, net promoter score acted as a mirror, reflecting whether their work truly mattered. When these numbers aligned, the fog lifted, revealing that success wasn’t a single summit, but a series of deliberate, measurable steps.

Time Saved in the Sales Cycle and Procurement Process

Measuring success hinges on selecting the right Key Performance Indicators (KPIs) that directly align with strategic goals. Data-driven decision-making separates thriving businesses from those that stagnate. For digital marketing, core KPIs include conversion rate, customer acquisition cost, and return on ad spend. Operational health is often tracked through net promoter score, churn rate, and average resolution time. Focus on leading indicators, not just lagging results, to predict future performance. Avoid vanity metrics like page views without context; instead, prioritize actionable data that reveals specific strengths and weaknesses. A balanced scorecard approach ensures you measure financial, customer, internal, and growth perspectives simultaneously.

Trends Shaping the Future of Digital Wholesale

The future of digital wholesale is being reshaped by lightning-fast automation and a hyper-focus on data-driven decisions. Buyers now expect B2B experiences that feel as smooth as their favorite shopping apps, pushing platforms to offer real-time inventory syncing and personalized catalogs. A key driver is **predictive analytics**, which helps wholesalers anticipate demand and avoid costly overstock. At the same time, the rise of direct-to-consumer models is blurring traditional lines, forcing wholesalers to offer drop-shipping integrations and flexible minimum orders. This shift towards transparency and speed isn’t just a tech upgrade—it’s about building trust through **B2B marketplace visibility**, where accurate product data and instant communication become the new standard for survival. The result? A dynamic, less rigid ecosystem where small buyers get the same tools as big retailers.

AI-Driven Demand Forecasting and Smart Recommendations

The wholesale sector is quietly undergoing a digital revolution, where long-standing relationships now compete with algorithmic efficiency. Buyers expect instant price comparisons and real-time inventory visibility, while sellers leverage data analytics to predict demand before it spikes. B2B e-commerce platforms are becoming the new industry standard, replacing faxed orders and phone calls. For a family-run distributor in the Midwest, this shift meant surviving a supply chain crisis by switching to a cloud-based ordering system that automatically rerouted stock during port delays. Key drivers behind this evolution include:

• Omnichannel integration, where a buyer can negotiate on a mobile app, checkout on a laptop, and track delivery via SMS.
• AI-powered personalization, offering volume discounts or alternate products based on past purchasing patterns.
• Blockchain for provenance, ensuring a retailer in London can verify that organic coffee was sourced from a cooperative in Ethiopia without a single paper certificate.

Self-Service Portals and Buyer Autonomy

The future of digital wholesale is being shaped by a move toward hyper-personalized B2B experiences. Instead of treating every buyer the same, platforms now use past purchase data and browsing behavior to recommend specific products and offer custom pricing tiers. This shift away from static catalogs means wholesale relationships feel more like a curated partnership. Key drivers behind this change include:

• AI-powered demand forecasting that helps wholesalers stock the right inventory.
• Seamless marketplace integrations, allowing buyers to discover products without switching platforms.
• Real-time inventory syncing across sales channels to prevent overselling.

With these tools, wholesalers can finally offer the same convenience and personal touch that consumers expect from retail, making data-driven buyer journeys the new standard for industry growth.

Embedded Finance and Flexible Net Terms

The future of digital wholesale is being defined by hyper-personalization and data-driven efficiency. B2B marketplace platforms now offer dynamic pricing and tailored product catalogs based on buyer history, while automation streamlines order fulfillment and inventory management. AI-powered demand forecasting is reducing overstock and stockouts, and APIs enable real-time synchronization between suppliers and retailers. This shift from transactional to relational commerce is non-negotiable for growth.

• AI & Predictive Analytics: Optimizes stock levels and identifies trends before they peak.
• Embedded Finance: Instant credit and payment terms within the platform accelerate cash flow.
• Headless Commerce: Separates front-end design from back-end logic for agile, multi-channel selling.

Q: How will AI impact wholesale pricing?
A: AI enables real-time, data-driven price adjustments based on competitor activity, demand shifts, and buyer loyalty, moving far beyond static, static cost-plus models.