Retail businesses must have constant products delivered to them in order to function. Retailers also have to know that in case of a sudden and urgent need of an item shipping, they can get it right away. This is why having one trusted wholesale supplier is vital for a retailer in order to maintain their customers’ satisfaction. Keep reading about what wholesalers do and why the role they play in helping retailers is crucial in the following guide.
What is a wholesale supplier?
Wholesale suppliers represent the supply chain’s middlemen. They purchase goods directly from the manufacturers. Since they shop in large quantities, they’re entitled to big discounts. In this way, they can offer their own discounts to the retailers they sell the items to. Wholesalers typically have a product licence, which means that their products aren’t available to the public.
If certain goods are, however, sold to regular customers, then those items certainly won’t have the same prices the wholesaler’s retailer partners benefit from. Retailers simply repackage the products they bought from their supplier and proceed to sell them to the public for their own profit. The retailers’ clients can buy those products individually, as they have no need for large quantities.
Why are wholesale suppliers essential to retailers?
When they purchase products from a wholesaler, retailers usually pay only between 60% and 70% of what they charge their own customers afterwards. Having their own supplier also means that they don’t have to worry about the high costs renting a storage facility implies. In case of an emergency, such as if certain products are suddenly out of stock, the existing relationship with the supplier helps the retailer restock fast. What’s more, retailers always get significant discounts when buying from their wholesaler, which saves their business both money and time.
Factors to consider when choosing your wholesaler
As a retailer, there are a few key aspects that you need to keep in mind while you’re looking for your future wholesale supplier. Some of the most important factors to consider are:
The quality of their products
It’s extremely important to perform some thorough research regarding the quality of the goods you wish to purchase. By being aware of the actual state of the items, you’ll know whether or not you want to proceed. This helps you avoid getting large quantities of poor quality products.
What discounts they’re willing to offer you
It’s of utter importance to remember that you can and should negotiate prices when doing business with a supplier. Keep in mind that the more you purchase, the bigger discounts you need to get. As a general rule, a reliable and trustworthy wholesaler will offer a 10% discount.
The wholesaler’s geographic location
It’s always a good idea to choose your supplier considering their geographic location. Fast delivery is definitely becoming a priority for people these days. Wherever you are located, try to find wholesalers that are nearby or within an easily reachable area.
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