The whole purpose of running a business is to make a profit, even a non-profit / charity business needs to make a profit to keep it going. Making a profit in business is the goal for any business owner, and there are many ways to achieve this, but today I want to tell you about how to source wholesale products and how to buy them at the right price. By buying at the right price
, and sourcing the correct stock you are putting a firm foundation to your business. This process works for both online and offline businesses.
One of the advantages of having your business online is the fact that you have removed some of the major overheads from your business. For example you do not need a shop – a shop adds to the overheads for you need insurance, lighting, heating extra wages, extra tax and the list goes on and on. Having an online business means you can work from home and cut out all these major expenses. But it does not matter if you work from home or a shop / office you still need to source the products at the right price and if you do not do this at the start of your business, then sadly your business will not last very long.
In simple terms buying at wholesale means you are buying at a lower rate. This often means you have to buy quite a few items from the wholesalers, but most wholesalers today have very low minimum orders, which means anyone who is series about having an online business in the retail sector can afford it. (And if you do not have the ready cash sell some items from around your home on sites such as eBay). You will need around $100-$200 to buy stock at the wholesale rates.
Another tip for you to consider is the fact that you need to know all your costings – eBay fees, PayPal fees, Postage Costs for each item, for you need to take these into account to see what profit you make. For example let us say you are selling a child’s hat. You buy it at wholesale for $2.00 and you sell it on eBay for $12.00. In your mind you make $10.00 profit and yes you do, but then you need to take away these “hidden” costs, once this has been done you are left with around $8.00 profit.
As you are trying to source products look in your local yellow pages, go to a local cash and carry, look in trade publications, and you can visit Trade Shows. When possible try and touch and feel the products to see the quality you are getting, ask the wholesaler questions, find the lowest order levels you can place.
Lastly be honest with them tell them this is a new venture for you, and although your orders may be low to start with, very soon you hope to be placing bigger orders and more often. Wholesalers will like this and over time they will give you bigger and better discounts.
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