Create as many dealer levels as you like. Once you've created the levels you can assign them to users by going to the customer list page and selecting the Dealers from the Group drop-down list. When you edit a Dealer, a new drop-down will appear on the customer edit page that will list all the dealer levels.

You must also assign prices to each dealer level you've created on each product you've created. So that when a dealer level logs into the store, that dealers prices will appear and be used when making purchases. When a person first goes to the store, they are not logged in so all the standard pricing is used (the customer can still add products to the cart at this point and the price will dynamically change once they log in). Once they log in, all the prices will change.

If you've created three dealer levels: Level 1, Level B and Special Level. And you're selling a shoe in the store. You'll assign a normal retail price to the shoe. You'll also assign three additional prices to the shoe - one for each dealer level. If a dealer of Level B logs into the store, that dealer will see whatever price you assigned to the shoe for Level B.