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Cost Saving Methods with Buying Wholesale

Mar 6, 2008
There is an interesting chain of sales that manufacturers and distributors follow. In many cases, the products you buy have been sold a few times over from one company to another. If you could cut the middle man out, so to speak, you could reap the benefit of drastically lowered costs.

Who Can Buy Wholesale

You most likely don't have experience with buying wholesale- and there is a reason for that. Wholesale requirements almost always require a minimum order of items for cost savings to occur. For the general consumer, this is impractical. If a consumer only needs one microwave oven, then there is no reason to buy 1,000 of them to get a cheaper price.

Since consumers are usually left out of the game, businesses tend to invest massive amounts of money in bulk purchases- and reselling these products for a return on investment. This has become vastly popular with technologies such as the Internet empowering this entrepreneur lifestyle.

It's important for businesses to stay on the leading edge of technology, since today's electronics may be tomorrow's junk. This makes bulk purchases quite risky, since retailers or entrepreneurs can't always guarantee sales. Many electronics such as iPods or Nintendo Wii game consoles have been popular even after initial launches of the product. In a sense, the game of buying wholesale can be a lot like playing the stock market.

Consumers Get in on Wholesale

Consumers aren't completely left out in the dust when it comes to wholesale. Consumers have also benefited from Internet technology. In particular, consumers have access to auction websites that can connect consumers with wholesale merchants with incredible ease. In some cases the consumer is still going through the middle man, but on a lesser scale.

Consumers also have opportunity to buy in bulk to save on money in the physical world. Specialized wholesale shops that sell products in super sized portions are popular among the city crowd. A 10 pound bag of sugar might be bought at a much higher price than the smaller bags, but the price per ounce will be much less. In this sense, consumers still have access to the benefit wholesale retailers enjoy.

Lastly, consumers have been enjoying the effects of wholesale products for a long time. Some merchants specialize in connecting consumers to wholesale goods that have been damaged or repaired. These types of services allow consumers to get a compounded discount- first from cutting the middle man out- and secondly for purchasing damaged goods.

Contacting a Wholesaler

Getting in touch with a wholesaler isn't difficult. Simply call a manufacturer of a certain product and politely request information on wholesale opportunities. As stated before, these manufacturers will almost always have minimum orders that must be met- so be prepared to invest in a large shipment of goods.

Some manufacturers don't deal with independent wholesalers- in which case one should ask where they sell their wholesale goods. You may not get the best price going through another dealer, but in many cases, the dealer can cut a good deal for bulk orders.

Final Thoughts on Wholesale Products

Wholesale investments differ from one category to another, but get prepared to spend a healthy initial investment if you are planning to retail the products. Otherwise, buying wholesale products at auctions and specialized shops can greatly benefit thrifty (and intelligent) consumers.
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