If you’re looking to set up a retail business then you will probably need to find some good wholesale suppliers. This, however, is easier said than done. Yes, there is no shortage of suppliers out there, but it can be difficult to tell the good ones from the bad until you have a little more experience. Added to this, you will have to decide what kind of supplier you are looking for, whether you want to source goods domestically or import them, and whether you want to pay an agent to find suppliers for you.
The very first step you should take is to decide exactly what it is you are going to sell as this will have an influence on the kind of supplier you choose. Who are your major customers? For example, are you looking to supply building contractors and sourcing low-cost building supplies or will you be dealing in smaller items such a t-shirts, banners or mugs? The important thing is to go for products which are popular enough to sell well but are just unusual or attractively priced enough to ensure the market is not already saturated with them. Research trends within your intended customer base so you can get a feel for what is likely to do well.
Buying goods in bulk is an important technique.
The next thing to do is to decide where you are going to buy your products from: will you source them domestically or import them? If they are more specialist products and you need them in a hurry then you may want to source domestically. However, bear in mind that the reason so many people buy from countries such as China these days is that the manufacturing costs are so low you can get pretty good mark-ups and make excellent profits. Chinese manufacturers can make pretty much anything you want, from bespoke machinery to flags, hats bikes or even prefab houses. Just make sure you factor in delivery times and costs as well as customs duties.
Also, bear in mind that there are several different kinds of suppliers so you will need to know what these are before you can make any decisions. Buying direct from the manufacturer will usually be cheapest as you can get them at cost price. However, if you are a small outfit and simply can’t make those big orders, the best thing to do is get your good from one of the manufacturer’s local distributors. These will usually be based domestically and will obviously charge more than the manufacturers although you should still be able to negotiate good deals if you’re buying in bulk.
If you really want to make savings then you can buy from liquidators who in many cases can offer products up to 75 per cent off the original wholesale price. However, this option is only really available for those who are a little more flexible about their needs, so if you want something very specific it probably isn’t for you.
If you do decide to import goods in bulk then the wisest thing to do, particularly if you’re entering into this arena for the first time, is to find yourself a good import agent to help you source the right suppliers. There are many reasons for doing this. Most importantly, if you are buying a large amount of goods from a supplier you really want to make sure they are going to deliver what they promise: otherwise you will have a warehouse full of goods you can’t sell for the price you were expecting. An agent based in the market you’re buying from will have a list of tried-and-tested suppliers they regularly work with and will also be able to check on the progress of your order. Not only this, but they can arrange shipping and ensure all your goods get safely through customs without any hold-ups.
Warehouse’s often are great places to buy in bulk.
If you haven’t hired an agent, either because you’re buying domestically or you just want to manage things by yourself, then before you consider parting with any money you should research suppliers thoroughly. Check out the backgrounds to see if they have ever had any issues when it comes to previous clients or on ethical grounds. Always ask to see testimonials from previous clients and avoid any suppliers unwilling to provide these. You should also request samples of products before sign an agreement for a large order. If you look online you will be able to find plenty of companies to choose from so it’s all a matter of doing your background research to narrow them down.
Summary: Buying goods wholesale for your business is not as simple as you might think. This article looks at how to buy in bulk safely and keep your costs as low as possible.
An article by Chris Jenkinson who recommends source-china.com as a quality partner for importing goods from China.