Wholesale marketing is whenever a manufacturer of an item or product sells their merchandise to a business or individual who will then offer it to the regular buyer; perhaps even using the brand name of the manufacturing organization.
This kind of marketing features a number of benefits, particularly if you are planning on spending money in wholesale and liquidated goods to start your own business.
Let us go over a few of the advantages below:
Benefit #1: Expand Your Knowledge of the Market
As you become more and more familiar with the different ways to obtain your products, you will find yourself much closer to figuring out the ins and outs of the market of the specific product you are purchasing. Details like the circulation within the supply chain, manufacturers who have the cheapest prices, and the outer functions of numerous businesses are just a few of the things you will become aware of.
If you get your goods from several different manufacturers, or have left a bad provider for a much better one, you will be able to see exactly what the differences are between two manufacturers.
Benefit #2: Saves You Money
Wholesale marketing will involve purchasing products in bulk, directly from the maker, instead of dealing with a middle person. If you work with a third party, you will have to deal with a number of markup fees, though if you work directly with the manufacturer then the prices of the products will be your only concern.
In order to cover for their losses, the manufacturers will most likely require that you purchase the products in a large amount, however if you average the price of each unit then you will realize some good financial savings as compared to purchasing from a third party.
It is possible to recover the expenses by selling the products at a price higher than the average unit cost. You can generate a lot of profit if you do your market research to determine the best price ranges, based on the trends of the product, to sell for.
Benefit #3: Create a Network
Wholesaling will result in you getting in touch with many different manufacturers to find out if you will buy from them. It is possible to talk to the suppliers directly, however when you are starting out it is a good idea is that you become a member of a network of associates who currently have a proven wholesale directory. In order to get a good price from manufacturers, this network will be able to help you out until you are better established. This can help you with discount rates and special usage of products, in addition to a highly effective learning environment. Make sure that you will find out more about the practice of wholesaling and the items you are selling; networking is the key.
Benefit #4: Build Your Brand
Selling will often involve the products being rebranded using the wholesaler’s own brand. Remember that most products sold in large chain retailers, ranging from food to office items, are purchased from the manufacturer and sold under the store’s own name. By doing this, the store’s brand expands and becomes stronger.
Also, if the products are of top quality then essentially you are getting free advertising simply by having a good product with their own brand name. As a potential seller of wholesale and liquidated goods, you will be able to do this too if you would like to sell products yourself.
Prices between producers and wholesalers often include having the brand name under the wholesaler. From the buyer’s point of view, the manufacturer’s part will be completely unseen, making it seem as if you did all the work in creating the products.
Regardless of what you will be purchasing, you can imprint your brand on the item. With just a couple of good quality products, you will have the ability to create a strong brand name.