How to Purchase at Wholesale Prices

Understanding the Wholesale Market

Before diving into specific sources, it's crucial to grasp the fundamental principles of dealing with wholesalers. Wholesalers act as intermediaries between manufacturers and retailers, purchasing products in bulk and distributing them to various retail outlets. This system allows manufacturers to focus on production while wholesalers handle distribution.

The Role of Wholesalers

Wholesalers are not retailers. Their primary function is to supply products to retailers, not to sell directly to the public. This distinction is vital because it explains why wholesalers often appear inefficient and why they may have barriers in place to deter non-retail customers.

Why Wholesalers Seem Inaccessible

Wholesalers need to maintain a facade of dealing exclusively with genuine traders to avoid upsetting their primary customers—retailers. If wholesalers sold directly to the public, retailers might stop stocking their products, which would be detrimental to both the wholesalers and the manufacturers.

Strategies for Buying Wholesale

Despite the barriers, you can still access wholesale prices by following a few golden rules. Here’s how:

1. Present Yourself as a Trader

Wholesalers prefer to deal with traders who are likely to make large purchases. Even if you're buying for personal use, you need to present yourself as a trader. This doesn't mean you need to own a shop; trading via online platforms like eBay or market stalls is sufficient.

2. Create a Trade Name

Having a trade name can make you appear more legitimate. Use your initials or a simple name like "JB Trading." This small step can make a big difference in how wholesalers perceive you.

3. Fill Out Application Forms

Most wholesalers require you to fill out application forms to access their prices. These forms are a way to filter out casual buyers. Be prepared to provide basic information and possibly some proof of trading, such as a business card or letterhead.

4. Overcome Minimum Order Requirements

Some wholesalers have minimum order requirements to deter small buyers. While this can be a hurdle, it's often only applicable to the first order. Once you establish a relationship, these requirements may be relaxed.

5. Request a Catalogue

When contacting wholesalers, ask for a catalogue. This will give you an idea of their product range and prices. Use your trade name and home address when requesting this information.

6. Avoid Applying for Credit Accounts

Applying for a credit account can complicate the process, as it often requires references and more stringent checks. Instead, opt to pay by credit card, which usually involves minimal checks.

Interesting Stats About Wholesale Markets

• Global Wholesale Market Size: The global wholesale market was valued at approximately $48.5 trillion in 2020 and is expected to grow at a CAGR of 5.6% from 2021 to 2028 (source).
• E-commerce Impact: E-commerce has significantly impacted the wholesale market, with online wholesale sales in the U.S. reaching $1.8 trillion in 2020 (source).
• Small Business Influence: Small businesses account for 99.9% of all businesses in the U.S., many of which rely on wholesale suppliers (source).

Conclusion

Navigating the wholesale market requires a bit of strategy and understanding of the industry's dynamics. By presenting yourself as a legitimate trader and following the outlined steps, you can access wholesale prices and enjoy significant savings. Remember, the key is to play the game correctly and establish a good relationship with wholesalers.

This article is based on insights from Mark Eastwood's best-selling book, "How To Buy Cheap DVDs and Games and Make Money." For more information, visit Cheap DVDs and Games.