Buying Whole Sale Products

Every successful business, big or small is based on the objective of profit. Every entrepreneur strives to buy low and sell high. In this article we will talk about the first half of the equation.. buy low.

A normal buying process in a corporate includes a myriad of buying sources for various requirements, not only the finished products, but also supplies and raw material etc. To keep it simple, we will consider a simple trading business, where no manufacturing or processing is involved, just buy and sell.

Sources of buying could include various sources like are manufacturers, distributors, agents, wholesalers, importers and liquidators. The decision regarding who to buy from stems from various requirements and reasoning criterion like price, product quality, reliability, warranty support, after sales service, terms of supply and fulfillment.

Wholesale Buying

Channels of distribution have evolved immensely and the process is still going on. There was a time when all steps in the product distribution cycle right from the manufacturer to the customer were considered important. Each of these steps involved a markup on the price to keep the margin for the entity handling the product, greatly enhancing its price. In a bid to reduce these markups, it has been seen recently that the steps have become overlapped and myopic. Irrespective of what steps have been bypassed, the objective remains the same, to get the products to the retailer at the minimum price. The wholesale buying sources thus have reduced to wholesalers, liquidators, and importers. Buying form these sources, you are actually buying from a discounted retailer. A lot of confusion is avoided when we see lot of internet advertising claiming wholesale prices; they are not wholesalers but discounted retailers. The evidence, lies in the fact that when you buy from a legitimate wholesale source, you will be asked for your sales tax ID.

Wholesalers: The first option is to buy from a wholesaler that stock your class of merchandise. The process is simple, just open an account and start buying. It is advisable that you open more than one account with different wholesalers to take advantage of price fluctuations and various schemes they offer from time to time, moreover, you have more sources, if the stock runs out with one wholesaler.

Liquidators: Buying merchandise from liquidators will be the cheapest wholesale source for new merchandise. Liquidators are different from wholesalers or distributors in the act they do not stock the same item consistently. They normally purchase form various sources that include off-season supplies, slow moving goods end-of-run products and goods from bankrupt traders. As a result, they have more variety.

Importers: Importers are one of the best sources of new products at wholesale or lower prices. Importers are normally product or industry specific. Importers of general merchandise are not very common. Importers normally work with large volumes and may tend to refuse low volume buyers.

Manufacturers: Another important and cheap buying source is manufacturers that include farmers, craftspeople and growers.

Factory direct: By far the cheapest source to buy goods, since it does not involve any intermediaries like agents, distributors or wholesalers. Buying factory direct for a small trader is not easy since manufacturers look to selling volumes. However, since the advent of the internet, this has become an easier process, to buy any products from anywhere direct from the manufacturers.

Certain issues like fair price, product quality, supplier reliability, terms of purchase need to be sorted out before moving on to buying through the internet.

Auction sites: provides wonderful opportunities to buy products at wholesale pricing under its Wholesale link. The page is numerous categories and sub-categories.

However, our recommendation to buy products wholesale from the best resources is on www.WholeSaleLounge.com where for example, you could find DVD's at $4.95 instead of the normal retail of $24.95. Imagine the profit you could make at $20 a DVD on a daily basis. www.WholeSaleLounge.com lists various sources that include wholesalers, liquidators and manufacturers for numerous product categories and you could find your choosing without much effort. Find REAL Genuine Wholesalers, distributors, Drop Shippers, Liquidators and more on WholeSaleLounge.com