Buying Wholesale 101
Posted on September 09 2016
When you hear the word "wholesale", what do you think of? A whole lot of sales? Bad joke, but it's actually true! You can make a lot of money as a result of working with a wholesaler.
"Wholesaler" refers to a company or individual that buys a large quantity of goods from the initial source, and them sells them to retailers. Then the retailers sell them to consumers at a higher price.
ADVANTAGES OF BUYING WHOLESALE:
There are many advantages to buying wholesale products in bulk.
- The primary advantage of buying wholesale items is the amount of money you can save by doing so. Businesses can afford to give bigger discounts to customers when they save money while buying the goods in bulk, which means more customers will take advantage of the sale price and buy more, leading the retailers to make more money in the long run. That's why big bulk stores like Costco are so popular! It's a win/win for both the consumer and the supplier.
- Another advantage of buying wholesale is that you can prepare for rush sell times during off-seasons. For example -- you can buy our prom essentials (like our 3 piece tuxedos and cummerbunds) in bulk at the end of summer, and then sell them in the spring for an increased profit margin.
- Buying in wholesale means you have a variety of brands to offer to your clients. For example: Ferrecci is a well-recognized brand that customers are familiar with and go out of their way to find stores that sell our products at. By carrying a variety of different brands (including ours), new customers will flock to you.
WHAT SHOULD YOU MAKE SURE OF BEFORE BUYING WHOLESALE?
- Make sure you have enough storage space.
- Have sufficient cash flow to buy the products in bulk in advance, with the intent to sell them moving forward.
- Be aware of supply and demand. Make sure you're buying exactly what your customer wants. Lucky for you, we have a wide arrange of both formal and casual wear available at wholesale prices on fhyinc.com.
GENERAL WHOLESALE TIPS:
- Continually introduce new products. Variety is key to keep your customers happy.
- Show off the variety of brands you carry by creating an online shop, a social media presence, and taking lifestyle/product photos. Tag @ferrecciusa and #ferrecci in any photographs you post featuring our products, and we'll repost them! This allows for co-marketing opportunities and additional exposure.
- Keep an eye on latest trends and take advantage of off-season sales.
- When in doubt, value brand authenticity as a priority. Your relationship with your wholesaler is an important investment, so you're going to want to go with a company with a long and reliable history behind it.
Remember: Inventory = cash! If you've got it, you can sell it.