When most individuals think of buying wholesale, they think that they are getting a great deal because they are buying in bulk. Fortunately, this is very true. However, many individuals also think that they savings from buying in bulk is a result of buying cheaper materials, so they do not believe that they are getting the same type of quality as they would if they did not buy wholesale. This is a misconception of wholesale products.
How does the wholesale industry work?
Wholesale products begin with the manufacturer. They buy the materials, hire the labor force, and create the product. When stores want to fill their inventory of that product, they have the option of buying either from the manufacturer’s warehouses or an independent distributor. The price they pay is juxtaposed with how they get their product.
When a store buys straight from the manufacturer, they are paying for the product, the labor it took to make the product, and the cost of shipping, with little profit margin on top for the manufacturer. When a store buys from an independent distributor, they’re paying for all of the above, plus the shipping from the distributor and the profit margin for the distributor. Buying from an independent distributor is getting the same exact same product with the same quality material for a higher price.
Save money with wholesale!
By choosing to buy wholesale, you are buying straight from the manufacturer and saving a lot of money in the long run by cutting out the middle man, or the independent distributor. This saves you from the fees and margins and instead, you’re only paying for the product that you ordered. Buying wholesale can easily save you as much as fifty percent on the exact same product you would get from a distributor.
Keep in mind that buying wholesale means that you will likely need to buy in bulk. As long as the product that you are buying isn’t perishable, stocking up with bulk orders isn’t a bad idea. Items like gift wrap and greeting cards, among other wholesale products, can be easily stored as long as you have the room. As long as your industry could benefit from a larger stock at lower prices, going the wholesale route can be a wise business decision.