I'm interested in setting up a business but I would like to know how shops get their stock so cheap. For example Beats Audio might sell their headphones on their website for ￡260 but another shop might sell the same type for ￡220 and still make enough off that to make a profit. So how exactly do the shops get the stock so cheap?

Short answer of course is they have a wholesale license and purchase agreement with the distributors. Your assumption that a retailer makes a profit off of a discounted item is not necessarily correct. Discounts below wholesale price is offered for many reasons. Sometimes a loss leader so people buy other more profitable stuff too. Sometimes the distributor offers monthly or quarterly bonuses for a certain quantity sold, sell a few more units and you make profit on the whole. Sometimes inventory needs to be reduced for carrying costs or for tax reasons. Retail typically operates on 5% - 10% margins, so ￡260 to ￡220 is probably a loss.

Wholesalers

From wholesalers and distributors.

the price depends on the VOLUME of merchandise they purchase, buy more pay less