Buying products from a wholesaler for the first time can be a daunting process. To help you get off to a good start, here are some wholesale buying tips – straight from a wholesaler – to help you get the best possible deals for your new business!
1. Research the products you want to buy.
Firstly, you will come across to your supplier as being a far more professional & serious buyer, than someone who obviously doesn’t have a good knowledge of the products they want to buy. If you come across as a professional, you will gain the wholesaler’s respect, & if they respect you, you are far more likely to be given special deals/pricing.
Secondly, as a retailer, you really should have an excellent knowledge of the product you are selling to your customers anyway. You need to be able to answer almost any question a potential customer may throw at you!
2. Have your relevant business/tax ID information at hand.
If you are purchasing from a wholesaler, in your own country, the majority of them will require, that you have certain relevant business registrations/tax I.D. When purchasing from a wholesaler, not in your own country, there will most likely not be any business registrations/tax I.D.’s that you have to provide. Check with your local tax office or government business authority to find out the requirements for your country.
3. Make the first contact a phone call.
Try to make your first contact with your chosen wholesaler by phone, or if they are in your area, maybe even stop in at their offices. There is nothing to stop you sending an enquiry via their website or email for starters, however there are a few potential problems with this method of contact.
- Spam (unrequested, junk email) is a big problem these days, & there is a risk, that your email, may inadvertently become mixed up with their spam, & deleted from their inbox, without them even reading it.
- There are many people, out surfing on the net, who may see a product they like on a wholesaler’s website, & decide to see if they can buy it cheaper than the retail stores, straight from the wholesaler, either from themselves, or to make a quick buck. They have no registered business, or any intention of creating a long term buying relationship with the wholesaler. This is something that wholesalers aren’t too keen on, & it may be difficult for them to tell the difference between your genuine request for information, & the tyre kickers.
4. Have references ready, if possible.
It isn’t uncommon for a wholesaler to request a couple of references from other wholesalers you have dealt with before. This of course may not be possible if you are buying for the first time, so you can usually overcome this by offering to pay up front for your first few orders.
5. Ask for discounts for large orders.
In general, the larger the order you are able to place, the cheaper you will be able to get the items. Wholesalers deal in larger quantities of stock than retailers, so the quicker they can move it, the less warehouse space it is taking up, & the less they have to handle it (breaking it up into smaller order quantities), the more money they save.
6. Ask if they’ve got any merchandise that’s taking a while to move.
Wholesalers deal in large quantities of stock that they like to keep moving as quickly as possible. If they have some stock that’s taking a while to sell, you may be able to negotiate a deal, where you can purchase the remaining stock at a ridiculously cheap price. Just make sure that you will be able to sell the stock – if there’s no longer a market for a product, it doesn’t matter how cheap you can sell it at, you won’t make any money!
7. If you find a good wholesaler, try & stick with them.
- You will have got to know them well enough to know they are going to deliver your items on time, provide good quality products, & you will most likely have established a good credit relationship with them – something that can take a while to develop with a new supplier.
- A good wholesaler will know that it is far easier & cheaper to keep existing customers, than have to go out & find new ones. If you can show to your supplier, that you are going to buy regular amounts each month, & pay your accounts on time, you should be able to negotiate a small discount on your purchases in return for your continual business.
Hopefully this has helped to give you some insight, into the world of the wholesaler, & will enable you to be better prepared, when are ready to take the first step, & place your first wholesale order. By following some of the steps I have outlined in the last few pages, you should be able create a successful, long term relationship with the supplier of your choice.