Purchasing products at wholesale prices to resell to the public doesn’t require a full scale financial plunge into a new business. In fact, vendors abound who sell from the trunks of their cars or place their bounty on eBay and Craigslist to bolster their coffers. The big box chains may be importing directly from China, but there’s still a plethora of retailers working with the middle-man, also known as the wholesaler. That’s where you start.
Instructions
1. Register your business. If you’re planning to sell to the retail public, this is a good first step. The level at which you establish your business presence is about choice and goals. If you aim to go head-to-head with Target or Kmart, you’ll need to register your business name, incorporate and obtain an employer identification number from the Internal Revenue Service.
2. Print up business cards. Even if you decide you only want to sell to neighbors and friends, that business card is often all you will need to get in the door of a wholesaler.
3. Obtain a resale certificate if your state has a sales tax. This enables you to purchase from wholesalers without paying state sales tax. It does also, however, require that you collect sales tax from your clients and then report and remit it on a quarterly basis (or more frequently) to the government.
4. Contact wholesalers in your area. Start with the yellow pages or the Google directory for wholesalers in nearby cities. Do not neglect factories in your area. Knock on their door, show them your flashy new business card and ask them what’s for sale.
5. Attend trade shows. Wholesalers attend annual conventions and trade shows where they all get together to compete for your business. These shows are great forums to see what’s out there in your area of interest, but also to get good prices. Wholesalers don’t want to walk away from a show in which they’ve invested time and money without a pile of purchase orders.
6. Join professional organizations associated with your retail products. If you are turning your model train hobby into a business and plan to sell to fellow enthusiasts, you probably already have connections to wholesalers. Whatever product you plan to sell, stay abreast of the buyers and sellers.
7. Negotiate with whomever you buy from. Establishing a relationship with a wholesaler is the best way to get good prices for your merchandise, but it never hurts to ask about their volume discounts, their overstock items and discounts offered on damaged items.
8. Shop around. Even if you find a wholesaler to satisfy all your retail needs, it behooves you to keep shopping. Don’t disrespect your new business relationship to save a few pennies, but also don’t lose money just to stay on their good side. Sometimes all it takes to get the best price is to point to the competitor’s numbers. Often, the wholesaler will meet a competing price.
Tags: your business, your area, business card, good prices, into business