Find a Business For Sale

The Benefits Of Buying From Wholesalers

Posted: 24 Sep 2014
Estimated Read Time: about 4 minutes

Many new entrepreneurs with small ventures don't buy supplies from a wholesaler because they assume it's not for them – they think wholesalers only trade with large, established businesses....

However, in reality there’s nothing stopping them. Wholesalers might be for “trade only”, but any kind of trader can buy from a wholesaler – and that means if you intend to buy stock and sell it on, then you’re eligible. You don’t need to be a large retailer. You don’t even need a shop, a warehouse or a proper office.

A wholesaler might not even ask for evidence of your trader status – although some will require proof. But don’t let this put you off because it shouldn’t be a problem, regardless of the size of your enterprise. In many cases, just a letterhead or business card will be sufficient – but failing that, a bank statement or business invoice should be enough to satisfy the wholesaler.

You might find some wholesalers require you to apply for a membership card before they will sell to you – but this shouldn’t involve much more than filling out a form and providing the usual kind of proof of trading.

Wholesalers will sometimes stipulate minimum purchase requirements, but this is usually when they are dealing with larger firms. Smaller traders won’t always have minimum order amounts imposed on their purchases. And if they do, it will be for nominal sums – maybe as low as £50-worth.

It’s important to remember there are plenty of wholesalers out there, so if one demands terms that don’t suit you or your business, shop around until you find another that you’re happy with.

So what are the advantages of using a wholesaler? Well, there’s the convenience of being able to buy plenty of stock from just one place. But the biggest advantage of buying from wholesalers is the saving you make. Because wholesalers buy and sell in bulk, the stock is available at cheap prices.

The source of the goods on sale is often another reason for discounts. For example, the products might be end-of-the-line items that are still usable and in good condition but have been superseded by newer versions from the manufacturer. Or they might be returned items from catalogues or chain stores, sold off to the wholesaler at reduced prices – the savings from which are passed on to the trader. There might be other reasons the items have ended up as wholesale stock, however, and it’s always worth checking the provenance and making sure the products aren’t faulty in any way. Usually, they will be clearly labelled but if in doubt, ask.

Further savings can be made through the use of trade cards, which some wholesalers offer as a loyalty scheme. These work in much the same way as the discount cards standard retailers offer to shoppers. If you buy regularly from one or two wholesalers who offer such a scheme, it might be worth your while taking them up on it.

Remember, any savings you can make will benefit your profit margins – and that’s what buying wholesale is all about.

More from our business portfolio