Wholesalers generally deal directly with manufacturers or produce the goods themselves. They acquire the goods in bulk from the production site, and after assembling, sorting, and grading the products, they repackage them in commercial wrappers and redistribute in smaller lots to retailing outfits. One of the main advantages of buying from wholesalers is that the products are not subject to sales tax.
How to Find Wholesalers
While there are a number of wholesale companies, finding a wholesaler takes a good deal of time and effort. Many UK wholesalers do not advertise their businesses as they deal in bulk quantities that are too large for most small businesses. More to the point, larger wholesalers will already have hefty sales forces and distribution networks in place and hence are not interested in acquiring new dealers.
Many times, wholesalers are often found by word of mouth, so it is important to attend trade fairs and conventions as this allows you to cultivate contacts that will be beneficial in locating new sourcing options. However, these meets are often limited to business owners, so it is a good idea to prepare ahead by acquiring a sales tax ID or a business license. They will help you establish your credentials as a serious buyer.
Another method of locating wholesalers is to locate a product that you feel has potential and contact the manufacturers directly. While most producers do not sell directly to retailers, they will be able to give you the contact details of their distributers.
Online wholesale directories are yet another way of locating wholesalers and suppliers. These directories offer lists of sourcing leads that contain the names and contact information of various wholesalers. However, not all such websites are trustworthy, and the information thus acquired needs to be carefully vetted for bogus suppliers or middlemen pretending to be wholesalers.
A Few Helpful Tips
• Research ahead. Make inquiries beforehand about the products you hope to buy. Check the suppliers’ websites for detailed product information, customer testimonials, and reviews.
• Have your paperwork up-to-date and easily accessible, especially the relevant business license and tax ID information.
• Purchase in bulk whenever possible. Generally, the larger the order, the cheaper the rates.
• Always place a test order. Before entering into a long-term contract with a supplier, make a few test orders to check the company’s shipping and distributing systems.
To conclude, wholesale suppliers are essential to the success of any retailing venture. Locating a profitable wholesale lead can be a complex and time-consuming task. Nevertheless, with patience and careful research, you will be able to successfully establish a mutually beneficial agreement with your suppliers.
