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Utilizing Business Wholesalers To Your Advantage

Jun 8, 2008
To understand how to best work with wholesalers, you need to grasp their place in the general business and distribution world. The wholesaler's main function is to store related or unrelated products in large quantities, and to sell those products to retailers.

The final consumer cannot buy directly from wholesalers, although many would like to due to the fantastic savings. There are two reasons for this; one, wholesalers usually sell bulk amounts of product. Second, selling to end users would make wholesalers the competitors of retailers. This would alienate the retailers and cut off the main source of revenue for wholesalers.

While several retailers have the word wholesale in their names, they are not technically wholesalers. Since the term itself carries the connotation of value, many businesses have included it in their titles to attract more business and develop an image. Certain businesses go as far as to structure their stores like wholesalers, with a slightly cluttered and highly organized look. This tactic is often effective to attract lower to middle class customers, but it sacrifices most high-end consumers.

Wholesalers obtain their merchandise straight from manufacturers or even from other wholesalers. Retailers never sell to wholesalers, such as consumers could not sell to retailers; the chain functions in one direction. Most larger wholesalers receive their stocks from a number of sources, manufacturer and wholesaler alike.

If you own a business, finding an adequate wholesaler can be harder than you think. There are many small wholesale organizations that are unreliable and slow. Some of them may even try to scam you or exist for the sole purpose of fraud. It is wise to be careful and attentive in choosing a wholesaler. Look for reviews and testimonials on the company to make sure it meets your standards. Being careless can be incredibly costly in terms of time and money, so don't take any chances.

You need to be especially considerate when dealing with wholesalers outside your home country. It is usually more difficult to find information about them, and returning defective products or asking for refunds is nearly impossible. The best route to take is to avoid foreign wholesalers all together if possible, but sometimes they are your only option or have the best savings. In that case, still try to find out everything you can about them to determine if they are reliable and fair.

Specifically, you can learn about wholesalers through various methods. One is checking with the government to verify that the wholesaler has all necessary permits. Another is referencing the Better Business Bureau, which has detailed information on many small and most medium and large sized businesses.

Marketing, especially in today's high-priced world, has become a much more pricey expense than ever before. Just one advertisement can cost hundreds of thousands of dollars depending on the medium and quality. You can spread the word about your business easily by passing out cheap yet in-demand items, like pens.

Although probably ninety-percent of the items will be discarded, an acceptable amount will be used and seen daily by your market, and that kind of perpetual presence is invaluable. If you want to set yourself apart from the competition, consider giving out more useful and appreciated products, such as electronics.
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