Buying wholesale means either buying directly from the manufacturer or the distributor. It allows you to avoid the typical retail middleman, which is where a lot of the price increases on a product take place. Wholesale buying is ideal for non-profits, businesses and individuals who operate their own businesses out of their homes. Consider these six benefits of buying wholesale.
1. Bulk Savings
When you buy at wholesale rates, you are getting a bulk amount of the item for that rate. This means that rather than just saving on one or two items, you are saving on the whole lot of them. When you use a large quantity of a particular item, those savings could quickly add up.
2. Spend Less Time Shopping
When you buy items at wholesale quantities, you will not have to make as many shopping trips. This means less time that you have to spend driving to and from the store or distribution center. If you typically use two units of an item per week, you could buy a wholesale quantity of 24 units and only have to go and pick them up about every three months. This allows you to have more time working on your business.
3. Lower Gas Expenditures
When you do not have to drive to the store as often, you will spend less on fuel. One trip to the warehouse for wholesale items every few months will require less fuel than driving to a retail location every week or two. If you buy a wide variety of items at wholesale quantities, you could do one big run for everything once per quarter.
4. Improve Your Pricing
If you have a bricks-and-mortar store, you might find it challenging to compete with e-commerce retailers. Getting your inventory at a wholesale price could allow you to price your products more competitively. Lower prices could attract more customers to your store.
5. Become a Middle Man Yourself
Perhaps your bulk purchase yields too much inventory of an item than you can use. You could sell that inventory at a markup over what you paid for it. This allows you to be the middle man. You will still enjoy the lower price on the inventory you used, and you can offer some level of those savings to your customers.
6. Never Run Out
When you buy a big quantity of items, chances are good that you will not run out. If you have run out of inventory in the past, you know that it is a bad feeling to disappoint your customers. With a large inventory on hand, you will be able to fulfill your orders as requested by your customers.