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Wednesday, January 7, 2009

Finding A Wholesaler That Sells Bulk

Using a wholesaler that sells in bulk can save you lots of money. This is how buying in large quantities can benefit you. You buy one DVD player at the price of $100.00; If you bought 100 DVD players at once, the price would be around $50.00 for each DVD player. People tend to think they have to go overseas, to buy large quantities of goods, and save money. This is the biggest myth out there. There are plenty of manufacturers or manufacturer wholesale distributors around you, probably in your state. Ninety nine percent of the time, it's a big waste of time to buy overseas. By the time 1 pallet is delivered from China to the USA; You have paid so much money for shipping, you could have paid for huge container to be shipped( the containers you can fit 2 cars into). You have to worry about customs also, it can take months for customs to inspect your goods. You will lose hundreds, if not, thousands of dollars doing business across seas.

The price is outrageous to have something, as small as, a pallet load of Sony DVD players, boated across seas. The manufacturers and manufacturer wholesale distributors are doing this job for you. The manufacturers wholesale distributors have thousands of huge containers delivered along side of your measly pallet anyway.

What about getting ripped off? If you buy from China, the same rules and laws don't apply, as they do in the USA. They can easily take your money and never send you the goods.

Here is a little insight: For two years, a friend of mine was doing business with a company in China. They sent everything he ordered every time. He was paying more for shipping, but he was still making about $20.00 or more per unit, by buying it overseas. He was so happy, telling me how much money he was making. Through the 2 year period, he bought a brand new car and a house. I kept reminding him to expand, don't put all your cookies in one basket. He just blew it off and kept doing business as usual. He ordered a bunch of playstation 2's ( I think he ordered about 172 of them). Well, 2 months later,his order never came. He called the company, and asked for the manager, which he new by name from talking on the phone so many times through 2 years. He got the run around. Everyday for 6 months he called them and tried to come to an agreement. They never agreed to anything, they kept saying they sent it, it wasn't their fault what happens after they ship it. He lost a lot of money, it almost put him out of business. He had a great two year relationship with a well known company in China. Who would of ever thought this could happen? Bottom line about buying over seas, you will lose. The money you save is not really worth it in the long run. I am not saying every company in China will rip you off. I am just saying, there is nothing stopping them. You are a measly, little, home business in the USA. You mean nothing to them.

Some more downfalls to buying in bulk is storage space. If you just bought a pallet of DVD players, you need a place to store it. Do you have a warehouse or spare garage space? You may need fire permits or other permits to store large quantities of goods.

Also, what happens if you sell 75 out 100 of the DVD players and the competition decides they will drop the prices. You either, don't sell them , or you have to sell them lower for less profit. You might lose money.

The upside is; if you bought a pallet of anything, you thought things through. You know what will fly off the shelves. You know if you buy a pallet of Playstation 3's or Xbox's you won't lose money. You will make money and you will make it fast by buying bulk quantities. There can be much success, with buying large amounts of goods at one time. If you have a place to store large amounts of anything.. If not, drop shipping may be ideal for you. It's all in knowing, "what's hot" at the time. It's very important to do research on whats selling right now. Tomorrow the same things might not be selling.

Remember, there is tons of business to do, in the USA. We don't need to go overseas.

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