Posts Tagged selling online
Make Profit For Your Business - Check Into Wholesale Items
Posted by johnb in Bulk Drop Shipping, Closeouts, Drop Shipping, Home Based Business, Liquidations, Wholesale, Wholesale Sources on October 24th, 2009
As a retailer, you want to be sure you are sourcing your products from a wholesale supplier. This is true whether you are selling online, via a catalog, or from a land based store. You want to source your products from wholesale suppliers, because it gives you a way to have low cost products that can be sold for a profit. Many small business owners look for discounted goods to resell, but this is very time consuming, expensive, and complicated. Plus, it limits that amount of success and profit that can be made. To show you the importance of using a wholesale supplier let’s look at the differences between wholesale items and items discounted at a retail store.
The first thing you need to realize is that retail stores order their products from wholesale suppliers. In other words, the retailer paid the price for the wholesale items set by the wholesale supplier in order to bring the product to the store. At this point most stores us a markup method when they price the items for sale in the store. The markup is usually 100%. How can they do this? You have to realize that wholesale items are usually purchased in bulk, making the cost per unit very low. This allows the retailer to use a markup of 100% and still have the customer content to pay the price on the tag for the item.
In other words, the retailer buys a product from a wholesale supplier that costs $5 and sells it for $10 in the store. This is what is meant by a 100% markup. This will allow the retailer to make hold a sale on any left over stock at the end of the season, so that new stock can be brought in. In the sale, they may mark everything down by 20%. This means they are still making an 80% profit by selling the $10 item for $8. In other words, since the retailer only paid $5 for the item, they will be making $3 for every item sold. As a matter of fact, they can even offer a 40% discount and still make a reasonable profit from the item. The retailer only sees a loss if they give a discount on the item of 50% or more. This is why it is rare to see sales that are 50% off or more. Usually if this kind of sale is offered, it is for an item that will not sell, so the retailer would rather cut their losses and get rid of the item then have it take up shelf or storage space.
After taking all this into consideration, you can see how sourcing discounted retail goods, you are actually paying a lot more than you would be paying if you sources wholesale items right from the start. Plus, you will be able to compete with any stores, because the wholesale items that will be available will be the current seasons stock. In order to sell last season’s stock, you should look into finding wholesalers who offer overstocks, liquidations, and closeouts. These are usually marked well below 75% off retail price. If you are a online based business, you may also want to check into drop shipping services offered by many wholesale suppliers. By having your wholesaler drop ship the product directly to your customer, you can avoid costs, time, and energy associated with storing and maintaining stock.
As important as making a profit is to running a business, it is very important that you look into wholesale suppliers, no mater what kind of retail business you run. It is so important that finding a wholesale supplier should be one of the first things you do while setting up your business.
Liquidation Pet Supplies - A Most Lucrative Market
Posted by johnb in Bulk Drop Shipping, Closeouts, Drop Shipping, Home Based Business, Liquidations, Warehousing, Wholesale, Wholesale Sources, eBusiness on October 23rd, 2009
Are you aware that people will continue to spend money on their pets no matter the condition of the economy? People love their animals so much that they will forgo something for themselves in order to purchase items for their pets. If your business is retail, sourcing liquidation pet supplies for resale to these committed pet owners is a legitimate business opportunity. Liquidation pet supplies are more easily obtained that you probably realize. A viable starting point is to locate a wholesale supplier that carries a full array of general merchandise. Normally, you will see a considerable amount of pet supplies among this general merchandise. Liquidations are not certain events, so liquidation pet supplies cannot be expected in stock, but everything that is considered liquidated stock will be visible and the very low prices will indicate that these goods are what you are looking for.
When sourcing these items, it should be noted that concentrating on dogs and cats is not recommended, as there are numerous people who are just as crazy about their pet birds and fish and it is simple to locate and sell supplies in these areas, too.
After you have found the wholesale liquidation pet supplies that you need, where do you go from there? First, you should determine where they will be sold. The choices could be selling online, in a retail store, through a catalog, or at a flea market; it’s simply up to you. The next decision you should make is to define your pricing strategy, whether to price high or to price low, with the resultant sales requirements to achieve your target profit. Whichever way you go is acceptable, the most important thing is that you have knowledge of your target market. That is, a higher price point will court more affluent customers, so your products must be of good quality and geared to that market. Since liquidation pet supplies will be composed of both high and low end items, the excitement of liquidations comes from not knowing what will be available at any given time. It is the same situation with overstocks and closeouts, so if you are interested in knowing exactly which products you will have for sale, you would be better served to use the standard wholesale sourcing. There are wholesalers to be found who provide a drop shipping service which will ship your sales straight to your customers. The advantage of this arrangement is that you do not need storage space, which is particularly advantageous if the liquidation pet supplies you are marketing are bulky, such as dog kennels. Usually, a fee will be charged to drop ship, but you will just pass this along to your customer.
Your research into sourcing liquidation pet supplies will show that this is a lucrative market to serve since people are forever spending their money on their pets.
Recent Comments