Top 5 Benefits When Buying Wholesale Merchandise for Your Discounted Retailer Business
If you own a discounted retail business, it is important that the items you buy for resale are right for your customers, and right for your budget. The best method of getting the products you need is to buy wholesale through liquidation auctions and wholesale suppliers. Buying in this fashion can provide you with a range of benefits, including a much lower risk than trying to make and manufacture your own goods. The following are five of the most advantageous reasons to start buying wholesale.
1. Great Prices on Buying Merchandise
Naturally, one of the biggest and best benefits of choosing to buy liquidations wholesale is the fact that you stand to save a substantial amount of money on the items that you buy. These items are often returns or overstock items that went unsold for one reason or another. Often, they are in new or like new condition, although that is not always the case. You need to be vigilant about checking the details of the goods on the pallet before you choose to buy.
In many cases, you can save thousands of dollars compared to the retail cost of the products you buy wholesale. This means that you can still charge the same or less than your competitors to make a nice profit. Of course, when you are getting ready to buy, it is vital that you put in the effort to determine the true value of the products for your discounted retailer business. How much will your customers be willing to pay for the items you want to buy? You need this information to get a better idea of just how much profit you could make.
Image via: TheHardwareConnection.com – This graph displays a theoretical item with a cost of $1.00. Customers do not know the RRP and will accept a wide range of possible prices. If you look at the retail selling curve you can see the difference in the profitability of an item based on different retail prices.
2. A Wide Variety of Goods
Another one of the benefits of buying wholesale merchandise is that you will find a wide variety of goods available. In some cases, the pallets or lots that you buy will all be similar or like items. That could be a good solution for your business. Other times, the lots will have a wide range of different items, all of which tend to be in the same niche. This means you have the potential to expand the types of items that you offer through your discounted retailer business. Naturally, this has the potential to help you find even more customers who are looking for those items. If you can buy wholesale items that are hard to locate in the retail market, such as chargers for older electronics devices, these could sell quite well for you.
Whenever you are buying wholesale, look at the list of all the items on the pallet to make sure they are going to fit your niche, whatever it might be. Lots tend to be organized to keep similar products together, so this is not likely to be much of a problem for you.
3. Selling Established Products With Brand Familiarity
When you are buying wholesale, you have the chance to buy brands that people already know, love, and trust. While you are still going to be building the brand of your discounted retailer business, you do not have to build the brand of the products you sell, because other companies have already done that for you.
When people are making purchases, they often want to choose a brand that they know and trust, or that they have at least heard of before.
The more awareness the person has of a brand, the more likely they are to purchase, so long as that brand has a good reputation.
For example, if you are reselling commercial electronics, some of the brands that are highly recognizable include Sony, Samsung, and Apple. People want to have quality brands, but they do not want to pay high prices for them. This is how you can help those customers, and how you can profit. When you are choosing pallets and merchandise to buy wholesale, pay attention to the brands that are available. This can give you a better idea of the overall profitability that the products could offer you.
4. Minimize the Shipping Costs
When you buy wholesale pallets, you will find that the shipping costs tend to be substantially lower than if you were to order the products, even batches of them, separately. Having lower shipping costs means even more savings for your business. Of course, it is essential that you take the time to factor in the shipping costs when it comes to the overall price of the goods you are buying and the profit you could make from them. Even with the price of shipping, it is possible to save a substantial amount of money.
5. Compete With the Larger Companies
There is also the benefit of being able to compete with larger companies. You might have a relatively small business right now, and that tends to mean a smaller budget when it comes to buying goods that you can sell. When you buy wholesale, and choose the right products and brands, you will find that it becomes much easier to compete with companies far larger than your own. This is mainly because you are getting these goods at lower prices, and you can sell them at a discount to customers.
In addition, even though you are buying pallets of goods to sell, your company still has the capability to be more agile when it comes to acquiring new and different types of products that the larger retailers might not sell any longer. This can endear you to those customers who are looking for items that are no longer readily available.
As you can see, when you are buying wholesale merchandise for your discounted retail business, you have some wonderful benefits and advantages to look forward to. Always take your time to find and work with the best liquidation auctions and wholesale suppliers so you can be sure you are getting the best deals.
Diego works as a sales representative for Direct Liquidation helping businesses to source liquidation inventory from the world’s top retailers and manufacturers. Diego works with single pallet, LTL and truckload buyers directly to ensure they stay in stock with high quality inventory year round.
Schedule a sales callback with Diego right now and find out how he can help your business profit with liquidation merchandise.
View Diego’s Bio on YouTube.
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