I would guess that a large part of the discrepancy is due to the wholesalers' increased costs. I've noticed in an unrelated industry (HVAC) that the middleman s

I would guess that a large part of the discrepancy is due to the wholesalers' increased costs. I've noticed in an unrelated industry (HVAC) that the middleman supply houses have increased their prices at a rate that outpaces the big box stores or the manufacturers themselves. As with many things today, labor costs seem to be the real killer, and staffing a business that needs to handle ordering, receiving, stocking, and often redelivery of materials is expensive. It's probably also fair to point out that businesses tend to be less price-elastic/sensitive than retail end-consumers. I, personally, am unwilling to purchase rainbow sprinkles if they exceed some reasonable cost, an elasticity I'd imagine a bakery doesn't have the luxury of when they have cupcakes to sell.