In our country today, everyone is trying to save money. No matter what you want to buy, you’re always trying to find the best deal. Very few people have enough money to buy something the first time they see it. Most will shop around at many stores before buying an item, especially something, which costs over $20. It’s a fact of life that prices will vary by huge amounts from store to store. There can even be two stores right next to each other offering an item at very different prices. Most people are not getting the best price for what they are buying. In a recent survey of 300 shoppers published in the Wall Street Journal, 82% of those interviewed thought they could have made their most recent purchase at a better price if they had looked around more carefully.
None of this is new to you. You’ve probably already found the best bargain stores in your area to buy all the things you need on a regular basis.
However, there is something that you may not know about: did you know that you actually can buy many products at even lower prices than the best discount store in your area? How is this possible? By buying at grossister prices. By buying products at the same place that your local store buys. This is what we would like to explain to you now: how to buy almost anything you need at wholesale, so that you can cut your spending by 50%.
In short, the purpose of this book is to show you how to save money on all your purchases by buying products at wholesale prices. In addition to showing you some sources for many different types of products, this book will give you some tips on how to negotiate the best prices and will show you how you can use this knowledge of buying at wholesale to make some extra income for yourself.
Finally, for those who really want to get into this as a business, which will allow you to save the most money on your purchases and have a good income outside of your present job, this book will explain the basic steps necessary to set up your own business including how you can obtain a line of credit of $5,000 to help you get started, and where to get all your business stationery and equipment at the lowest possible wholesale prices.
For all this information, just turn the page and enjoy this journey into the world of wholesaling!
Buying Wholesale Versus Buying Discount
How much money can you really save if you buy at wholesale prices? To answer this, let’s look at the profit structure of the retail market.
Most retail stores will mark up the price of their products 100%, or double their own cost. In this example, you can obviously save 50% of your money if you make your purchase directly from the wholesaler, instead of buying from the store. Essentially, by buying directly from the wholesaler, you are not paying any service premium to the retail store. The retail store can charge more than the wholesaler because it is more convenient for the buyer to find most products in a retail store than to hunt around for a wholesaler that does not have a prime storefront location in the middle of town.
Also, many wholesalers will not sell items to an individual consumer; they will only do business with an established business that will buy in volume from the wholesaler. Often the wholesaler will have minimum purchase requirements, which can be as low as $500.00 or as high as $20,000.00. Basically, most people accept retail prices as a fact of life because it takes some extra effort and time to figure out how to reach the wholesaler directly, and in many cases, it just is not possible to deal with the wholesaler, unless you are an actual business (which is a good way to get wholesale prices and which will be the topic of a later chapter).
Now let’s look at the structure of discount pricing, which is what most people look for in saving their money. When a store offers discount prices, they will not mark up the item 100%; they will offer a discount from the full retail price of 20-40%. They still need to make a profit, so they won’t reduce the price 50%, but they are making less of a profit in the hopes of getting people to do business with them. As an example, take an item that normally sells for $100. The store paid $50 for that item. Instead of charging $100, the store may discount that item to $80 or even $60. At the lowest discount you can save $40. However, that doesn’t give you as much of a saving as buying the item yourself for $50 directly from the wholesaler. In other words, even the best discount value will not be as good as buying the item at wholesale.
The only exceptions to this rule are liquidation or closeout sales, where the store sells the item at below its own cost, because it must regain some of its original investment in the merchandise. In this case, you may get a better deal from the store than if you went directly to the wholesaler, but these cases are not easy to find and don’t occur very often.