Finding Wholesalers

Finding a genuine wholesaler is one of the hardest parts about starting a business. You can easily start selling on Ebay straight away by getting rid of old items you no longer want. If you are looking to start a long-term business however, then you need to find a wholesaler. A supplier who you can rely on to deliver orders to you fast and consistently. This is not as easy as it seems.

When I first started out this was one of the biggest problems I had to overcome. I eventually succeeded but only after a number of false starts. By giving you my experience, it may save you some time researching this aspect of business.

Wholesalers Online

The truth is that the majority of companies online advertising themselves as wholesalers are not. They are retailers pretending to be wholesalers. If you wanted to buy something for your personal use, you may get a bargain. If you want to buy stock to resell however, then you will be disappointed. The prices these companies charge will not enable you to have a decent mark-up for yourself on reselling. By decent profit margin, I’m talking a minimum of 35%.

So how can you tell a real wholesaler from a retailer in wholesaler’s clothing? It’s not difficult. The genuine wholesaler will have a “trade only” section to their site, which is only accessible with a password. To get the password you have to contact the wholesaler who will send you out some forms to fill in. They will ask you some questions about your business.

Once you have filled out the required forms they will then give you access to their trade only section. Real wholesalers will have a minimum order, this can be anything from £50.00 plus. The sure way to check if you are dealing with a real wholesaler is to look at the prices and compare them to retail prices on the net. Look on Ebay and on the websites of companies selling the same products. If the retail price is close to the wholesale price then you are not been given real wholesale prices.

You want to be getting at least 40% plus discount for buying wholesale. The wholesalers I use don’t have ecommerce sites, they send out catalogues to their customers who choose the products they want then order, usually by fax.

Wholesale Clubs

There are a number of businesses online where for a monthly fee you get access to their wholesale lists. These companies specialize in getting together all the wholesalers in every market and putting them on their member’s only websites. Members can then access the website and find wholesalers.

I was a member of one of these sites for a while and to be honest was disappointed. I didn’t find a single wholesaler that I could use. Many of the wholesalers on the list were just selling cheap toys, which were no use to me. Others were in china, which I didn’t trust. After a while, I discovered that nearly all the wholesalers on the site were easily found by spending a little time on the net.

I cancelled my membership without any problems but I have heard that some of these sites make it very difficult for you to cancel once you sign up. So if you are thinking of joining one of these sites then before you commit yourself check that you can easily cancel at any time. Ask what the cancelling procedure is.

After a lot of wasted time searching out wholesalers and a few false starts I eventually found what I was looking for and have established good relationships with my suppliers. I didn’t find any of my wholesalers on the net because most of them are not there. They don’t need to be. They sell to regular customers who search them out and find them. So what’s the best way to find them?

As many genuine wholesalers have a poor web, presence you will have to research through the business pages. You can do this through the internet or through your local library. If you research on the net, you will eventually find some contacts. They will probably not have a website but a phone number and Email address are all you need.

Once you get a phone number then make contact with them. Don’t be afraid. Wholesalers want to sell to you, that’s their business. They’re not interested in selling you single items but they are interested in supplying you multiple items. Don’t be put off if they require proof of trading. If you are a start-up then you’ don’t have any proof.

When I contacted my first wholesaler by the phone, they asked for proof of trading. I explained that I was just starting up and didn’t have any evidence of trading. They asked me to fax them a letter header with my trading name on. Unfortunately, at that time I didn’t have a fax machine. Feeling very unprofessional, I explained this to the sales manager. He said ok email him a header. I did. My account was set-up and I began ordering and opened my business.

Many wholesalers are dropping their minimum order in the recession. Some will require you to make a purchase with an initial minimum order then allow you to buy small quantities the wholesaler you contact requires you to buy large minimum orders say £300.00 plus then don’t use them. Look around until you find the right one. Remember you are the customer, don’t go cap in hand, go confidently into wholesale negotiations.

If you persist, you will eventually find the wholesaler for you. You will probably have some false starts. One of the first wholesalers I contacted interviewed me over the phone and said he would send a catalogue out straight away. I was happy that I’d found a good source and waited eagerly for the catalogue to arrive. When it did, I was disappointed to discover that the prices were so high I could buy much of the stock from retailers on the net cheaper.

I didn’t place any orders despite receiving numerous follow up phone calls. When looking for wholesalers you will need to persevere to find the one you want. When you eventually find one who looks suitable read their terms and conditions to ensure they are suitable for you. If the minimum order is too high then don’t use them. Move on. You will eventually succeed.