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You don’t need to be a major retailer like Walmart to buy products at wholesale. There are many reasons why all types of companies might need to do business with a wholesaler.
Large retailers, non-profit organizations, as well as small work-at-home operations can all benefit from buying goods wholesale. The key to success is simply finding the right wholesaler to get high-quality products at great prices.
Here are a few reasons why your company might benefit from buying goods at wholesale:
To Promote Your Brand
You can buy everything from pens and Frisbees® to men’s wholesale clothing at wholesale. You can then use these items as promotional materials for your brand. For example, you can order a batch of t-shirts and have your company name or logo printed on them. Or you can print them with information about your community or charity event.
Buying wholesale can help you save on these products. Therefore, don’t order them through a printer, who will charge you a markup over the wholesale price. Purchase them at wholesale yourself, then give them away at community events, industry trade shows, networking events, or in contests. You could even give them away to current customers to inspire loyalty.
When you use promotional products the right way, you can get a lot of mileage out of them. As a matter of fact, promotional items purchased at wholesale can be more effective than many types of traditional advertising.
To Make a Profit
One of the most common reasons that companies buy wholesale products is to stock their shops or websites with items to sell. They mark those items up over the wholesale cost. In this way, they make their profit.
Other businesses actually create their own product to sell. However, they often distribute their products through other retailers. Most retailers simply buy and resell.
You don’t have to own a large company to get into the retail business. Anyone with an Internet connection can start an e-commerce website with the help of a good drop shipper.
A drop shipper is a wholesaler who works a little differently. When you work with a drop shipper, you don’t need to carry a lot of inventory. Instead, when someone makes a purchase from your site, your drop shipper sends it directly to your customer. You get to pocket the difference between your retail price and your drop shipper’s cost for the product. You never have to buy any merchandise before you sell it.
If you run a nonprofit organization, you often need to raise money to fund your operations and help your cause. Buying items at wholesale to resell can help you get the money you need.
The most common way that nonprofits do this is by buying items to sell during a fundraiser. The items are typically sold at a high markup. This system works because people who purchase these items know that they are paying to support the nonprofit organization.
Nonprofits also buy items at wholesale to give as free gifts when people donate to the organization. Some nonprofits even set up a small shop to sell various items. The understanding is that all profits go to support the mission of the organization.
The better value the items, the more the nonprofit can expect to receive in their fundraising efforts. Nonprofit organizations should treat these opportunities just as a for-profit business would. In other words, they need to try to maximize their profits.
RELATED ARTICLE: 3 CREATIVE WAYS TO BUY WHOLESALE ITEMS IN BULK
Research Your Options
There are many ways to buy items in bulk for a low price. For example, you might be working with an official wholesaler or you could be using creative methods like going to liquidation sales.
It’s important that you research your wholesale options well. Only in this way will you be sure that you are getting the best products at the best prices.
The quality of the products you purchase at wholesale will determine what kind of retail profit you will make. Additionally, if you’re purchasing at wholesale to promote your brand, better quality merchandise will make a better impression on your prospective customers and clients.
When you are researching wholesalers, be sure that you look at what kind of service you can expect, as well. You need a wholesaler who will ship quickly. You also want to purchase from a wholesaler who will work with you to resolve any problems that might arise.
Therefore, consider your wholesaler to be the first step in your sales funnel. Anything the wholesaler does will reflect on you, so make sure it reflects well.