How to Determine If You Should Buy From a Wholesaler

How to Determine If You Should Buy From a Wholesaler

By Clifford Woods

With all the current news regarding striving and faltering stores, considering liquidation sales is a profitable alternative.

 In the case of liquidation sales, things are not necessarily as they seem, so you will have to keep an eye out for the things below anytime you are at a liquidation sale.


What is a Liquidation Sale? To begin with, liquidation sales are usually managed by a liquidator who purchases the inventory in declining stores and then resells it on their own. Doing away with the goods is really a supplementary goal, at least in the beginning.

The main objective of liquidators is, needless to say, to make all of the profit they can. Therefore, products are not necessarily listed to sell, though eventually after some time they will simply want to get rid of their current inventory which means you can snag it for a cheap price.

Know the Real Price: To be able to offer a noticeable price cut, liquidators actually increase costs above the manufacturer's suggested retail price before listing any discount rates. Therefore, despite having a 10% discount, you may find yourself having to pay a lot more for the product than you might have before the sale began.

Since sales usually run for a few months, the liquidator has enough time to target consumers who do not know any better and make huge profits by offering small discount rates on overpriced items. When they finally get right down to real discounts, the majority of anything that you really wanted in the first place is going to be long gone. 

One more problem is that, since the store is not going to exist soon, all product sales are usually final. This means that, if you find that you have problems with your purchase, you will have to address the manufacturer instead of taking it back to the store.

Helpful Advice for Getting the Most Out of a Liquidation Sale: For anyone that is considering buying products from a liquidation sale, below is a list of a few guidelines to get the most out of your shopping experience:

1. Use a Credit Card to Buy: This is especially true for goods that will be shipped. In the event that your goods never arrive, you are able to go through your card company to get your cash back.
2. Watch Out for Extended Warranties: You need to be cautious about extended warranties. When it comes to liquidation sales, you need to be a lot more careful, as the guarantee might outlive the vendor. In many instances, it is probably best to just depend on the manufacturer's extended warranty, which is not affected by the merchant's shutting down.
3. Do Not Go to a Sale for the Sake of It: It is easy to be caught in the thrill of a sale and make buys that you will later on regret. The issue here is that, as mentioned above, liquidation sales are usually final and you will not have a chance to re-think your choice and return the item.
4. Check if You Have Gift Cards: Considering that the business is going out of business, time is running out for you to use your gift card. If you do not spend it before the liquidation sale comes to an end, your gift card is going to completely useless.
5. Research: Although it is possible to get a good price, it is just as likely that you will lose money. If you know what you would like to purchase then there is absolutely no reason for not knowing just how much you can get the item for somewhere else. This is especially important for those who want to resell the items themselves.

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Clifford Woods is the owner of Rapid-Liquidations
We buy complete inventories of unwanted or discontinued consumer merchandise for cash and sell complete inventories of consumer merchandise at about 15 to 20% of retails prices!



If you are interested, we also have a complete, easy-to-follow manual on how to get started in this business yourself.

Why Wholesale Marketing is Best for a Manufacturing Business

Why Wholesale Marketing is Best for a Manufacturing Business

By Clifford Woods

Wholesale marketing is whenever a manufacturer of an item or product sells their merchandise to a business or individual who will then offer it to the regular buyer; perhaps even using the brand name of the manufacturing organization. 

This kind of marketing features a number of benefits, particularly if you are planning on spending money in wholesale and liquidated goods to start your own business.

Let us go over a few of the advantages below:

Benefit #1: Expand Your Knowledge of the Market
As you become more and more familiar with the different ways to obtain your products, you will find yourself much closer to figuring out the ins and outs of the market of the specific product you are purchasing. Details like the circulation within the supply chain, manufacturers who have the cheapest prices, and the outer functions of numerous businesses are just a few of the things you will become aware of. If you get your goods from several different manufacturers, or have left a bad provider for a much better one, you will be able to see exactly what the differences are between two manufacturers.

Benefit #2: Saves You Money
Wholesale marketing will involve purchasing products in bulk, directly from the maker, instead of dealing with a middle person. If you work with a third party, you will have to deal with a number of markup fees, though if you work directly with the manufacturer then the prices of the products will be your only concern. 

In order to cover for their losses, the manufacturers will most likely require that you purchase the products in a large amount, however if you average the price of each unit then you will realize some good financial savings as compared to purchasing from a third party.

It is possible to recover the expenses by selling the products at a price higher than the average unit cost. You can generate a lot of profit if you do your market research to determine the best price ranges, based on the trends of the product, to sell for.

Benefit #3: Create a Network
Wholesaling will result in you getting in touch with many different manufacturers to find out if you will buy from them. It is possible to talk to the suppliers directly, however when you are starting out it is a good idea is that you become a member of a network of associates who currently have a proven wholesale directory. 

In order to get a good price from manufacturers, this network will be able to help you out until you are better established. This can help you with discount rates and special usage of products, in addition to a highly effective learning environment. Make sure that you will find out more about the practice of wholesaling and the items you are selling; networking is the key.

Benefit #4: Build Your Brand

Selling will often involve the products being rebranded using the wholesaler’s own brand. Remember that most products sold in large chain retailers, ranging from food to office items, are purchased from the manufacturer and sold under the store's own name. By doing this, the store's brand expands and becomes stronger.

Also, if the products are of top quality then essentially you are getting free advertising simply by having a good product with their own brand name. As a potential seller of wholesale and liquidated goods, you will be able to do this too if you would like to sell products yourself.

Prices between producers and wholesalers often include having the brand name under the wholesaler. From the buyer's point of view, the manufacturer’s part will be completely unseen, making it seem as if you did all the work in creating the products. Regardless of what you will be purchasing, you can imprint your brand on the item. With just a couple of good quality products, you will have the ability to create a strong brand name.

On the other hand, a manufacturer can simply focus on selling the items for a higher price or send it to a merchandiser to handle the sales for you.
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Clifford Woods is the owner of Rapid-Liquidations
We buy complete inventories of unwanted or discontinued consumer merchandise for cash and sell complete inventories of consumer merchandise at about 15 to 20% of retails prices!
If you are interested, we also have a complete, easy-to-follow manual on how to get started in this business yourself.

The Difference Between Wholesalers and Retailers

By Cliff Woods 

If you want to start your own liquidation business, you will have an advantage if you understand the jobs of all parties involved in the sale of a product. This is especially important since you will sometimes be dealing with wholesalers and retailers when you want to purchase their outdated products or merchandise on sale. 

Wholesalers and retailers are two essential middlemen when it comes to selling products.

Both wholesalers and retailers:

1. Work as an intermediary connection between the producers and the shoppers of products.
2. Focus on offering a broad variety of products and services for the buyers.
3. Minimize how much effort is necessary by the producer in distributing their product to consumers.
4. Significantly raise the effectiveness of trade which results in the decrease in total price of distribution of goods.
5. Supply the delivery of products to the customers at locations handy and available to them.
6. Offer after-sale solutions and handle customer complaints.
7. Provide advice about the goods to the buyers and relays the buyer feedback to the manufacturers as well.

Wholesaling is a small part of the total supply chain, which includes numerous providers such as vendors (the term vendors originally represented property vendors. However, today it means a supplier of any good or service), producers, and retailers. Retailers buy products from wholesalers, after which they sell the items at a higher price to cover expenses and generate income; to the end-user. 

What is a Wholesaler? A wholesaler is the middleman that works between the manufacturers and retailers. Wholesaler is the term for any person or company marketing goods in large amounts to customers besides the regular consumers; end-users. Therefore the producers who sell their products straight to retailers can also be considered to be wholesalers. The specific expertise and ability of wholesalers improves the performance of the products being sold. The wholesalers offer essential services and solve the issues of both the producers and the retailers. 

Several of the jobs of a wholesaler may include:

1. Execute marketing and sales campaign activities as well as hire professional sales associates for this exact purpose.
2. Set up orders for the item ahead of time based on the consumer's demand for the item. This makes it possible for the manufacturer to find out the exact quantity to produce so that no materials are wasted in the production process.
3. Keep the producers up-to-date on the alterations in consumers' practices, preferences, and trends.
4. Package various levels of products based on the quality and organize the goods into small groups for the retailers.
5. Work as the retailer's purchasing agent and helps to save them from the hassle of finding and building goods from various producers.

What is a Retailer?
Retailing is the term for all of the dealings which involve sale of products or services to the regular consumer. A retailer is a middleman that buys products from the wholesalers and then sells it to the shoppers; end-users. They are an important link in how products are sold since without them the consumers would have a much harder time locating goods and merchandise would not be able to be sold in far away locations. There is a stronger personal connection with the buyers when they deal with a retailer since they can focus on the different preferences and tastes of their target market. 

 Retailers are the final link in the "chain of distribution" and provide the final price tag of the product to the consumer. The retailers offer essential services and resolve the complications of the producers and wholesalers while at the same time managing the problems of the consumers. 

A few of the jobs of a retailer may include:

• Carry out storage function by maintaining goods.
• Provide outlets to wholesalers and producers.
• Organize products provided by the wholesalers and store them in hassle-free packages for the satisfaction of consumers.
• Keep customers educated about the shifting trends on the market like the various types of models in a specific product line.
• Predict the wants of consumers and appropriately put together products of different kinds.

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Cliff Woods is the owner of Rapid-Liquidations.
We buy complete inventories of unwanted or discontinued consumer merchandise for cash and sell complete inventories of consumer merchandise at about 15 to 20% of retails prices!
If you are interested, we also have a complete, easy-to-follow manual on how to get started in this business yourself.