Still wondering why your competitors always seem to be able to sell the same products couple of bucks cheaper than you? What is it that they are doing differently? Yes, you are right! They are getting a better wholesale price which means they can make more sales and in turn make more profit.
So here’s the next question… How can I get access to those same great wholesale prices?
Bulk Buying Because Price-per-Unit is King!
We do understand that it is hard for new sellers or start-up businesses to buy wholesale as it requires significant investment, but if and when you can, go for it.
It brings down your unit price and increases your profit margins. This is definitely something, businesses who want to be in for a long run, should aim for.
Buying Bigger Wholesale Lots Saves You from Missing a Profitable Sale
One of the most disappointing circumstances that can happen to customers is to learn that the product they wish to order is out of stock. Vice versa for your business or gift shop it means missing on an important sale, which now might go to your competition . You don’t want this to happen!
Whenever you can, buy bigger wholesale lots to avoid sudden stock storages owing to seasonal or arbitrary demands. And the perks of getting better price points will definitely increase value and volumes.
Factor In Price Research
Everyone seems to agree that it is important to research wholesale prices, but when it comes down to it, most bulk buyers pass it over. People assume that they just know how much products cost wholesale, and how much profit they are likely to make.
How can you just know? Preconceptions about product value can cause more harm to your business than good.
You won’t know, until you research it first! However time consuming, please factor in price research before choosing products.
Taking shortcuts with your research means you are more likely to lose out in the end. If you do your market research effectively and you take time to find the right supplier who gives you competitive prices, then your hard work will definitely pay off.
Planning Supplies = Easy Profits
Big-market players with rock-bottom prices understand the importance of having an effective inventory system and a good supply chain.
With a solid inventory system in place, your business can avoid missing out on sales just because a product ran out of stock. Timely replenishing stocklots helps you save big on money, and helps build a strong customer base. So if you are just starting out on arbitrage, buy smaller lots to study product movement. Once you are well-informed, factor in future sales based on historical burn-rate to buy bigger wholesale lots and stock up reasonable inventory.
Quality In Demand
While businesses grow, at times they miss out on the most important factor – retaining quality and enhancing it! Customers online and offline will value and propagate your product only if they get the quality promised to them. Your customers are your extended marketing team and their word-of-mouth recommendations are as important a marketing action as any other outbound and inbound one. It’s a good idea for new buyers to try and build a relationship with your suppliers and constantly give them updates about how well your product is being received by customers. Also, checking samples regularly will ensure no customer complaints and returns!
There is no fixed get-rich-quick-scheme. Every business has its own fair share of learning and we’ve had ours at SouvNear. Take some time to think it through.
Do you have more tips to add? Your comments are very welcome!
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