Tips for Working with Wholesalers
Here at KK Wholesale, we receive constant messages regarding the ins and outs of the wholesale business, so we decided to address a few of these here with some of our top Tips for Working with Wholesalers.
Wholesalers Have to Cover Their Own Costs
One question our team gets on a regular basis is how we price our wholesale lots on the site. As a wholesaler, we do have to cover our own costs and also make a profit as a business. A big myth in this industry is that item costs will be always be super low, when in all actuality pricing is based on a formula calculated on a specific markup margin. This margin stay constant but pricing ultimately depends on the supplier's cost. However, this is why we, like many other wholesalers try to mitigate this by finding the best deals on product.
Do Your Homework on The Wholesale Business
There are several different types of wholesalers, and which one you should use varies based upon your business needs. The rule of thumb in the wholesale business is the larger the quantity of items purchased, the lower the cost per item. If you are a smaller business, it can sometimes be more difficult to buy a larger volume of items. However, there are many wholesale distributors that will work with smaller businesses and ship directly to them as well.
Easy Ways to Find Wholesalers
1. Use Search Engines
Besides using Google and Bing, you can also do a simple search in the Yellow Pages for wholesalers. You can also narrow this search down by searching with the zip code you desire.
2. Trade Shows
Sometimes the easiest ways to meet people in the business is by going to tradeshows. You can also access tradeshow directories such as www.tsnn.com to search for shows by date and location. Before attending, its always best to have a plan in place to maximize your efforts. Once you have identified your inventory needs, setting up appointments with vendors in advance is helpful.
Build a Relationship with Wholesalers
This one is pretty simple. Once you have found the right contacts for your business needs, build relationships with these individuals so that you can work with people in the industry that you trust now and in the future.