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Who Can Buy From Wholesalers?

Posted by on Jun 15, 2017

Entrepreneurs new to wholesaling often fear approaching their suppliers because they mistakenly believe that wholesalers will only trade with established, fairly large retailers. Happily, this is not

Organic cherry tomatoes from Tuscarora Organic Growers (TOG) was delivered to Each Peach Market in the Washington, D.C., on Tuesday Aug 2, 2016. Each Peach Market, established in 2013, is a full service grocery store providing produce, dairy, farm fresh eggs, meat, beer and wine, prepared foods and more. The staff is ready and able to tell about how and where the foods are from and suggest ways to prepare meals. Jeanelouise Conaway and Emily Freidberg co-own the market to, as they say “…share our love for good food and the DIY culinary spirit with our community.” They feature many great local products grown and made in the region, and use suppliers such as Tuscarora to get them into this urban market.For the story behind these photos go to Rural Cooperatives Magazine and subscribe to future digital editions at http://www.rd.usda.gov/publications/rural-cooperatives-magazine  For more information about USDA Rural Development please go to http://www.rd.usda.gov/  For more information about USDA please go to www.usda.gov  USDA Media by Lance Cheung.

the case. You don’t need to have a shop or even be in charge of an office full of staff to buy from a wholesaler like celdron.co.uk. They are as happy to sell to sole traders as they are to large corporations. By their very nature, almost all wholesalers will state they are for ‘trade only’, but if you plan to buy stock and sell it on, you are technically a trader – you don’t need to have a limited company behind you to be eligible. Wholesalers are mostly ‘trade only’ for the benefits accrued from their manufacturers, for tax purposes and, of course, to set them apart from high street stores.

Most wholesalers like celdron.co.uk are happy to sell goods to you without proof of being ‘in the trade’, but some will demand evidence that you don’t plan to use their products for your own personal use. Again, if you are a budding sole trader new to wholesaling, this is nothing to fear. Proof of trading can be easily provided in the form of a business card or a letterhead bearing your trading name. An invoice from another wholesaler or a bank statement from your business account will also be sufficient to kick off your trading relationship. As with many aspects of wholesaling, there is great variation as to what individual wholesalers will require of buyers. If your local wholesaler demands a large minimum order or other unhelpful conditions from you, it makes obvious sense to visit other wholesalers until you find one that best suits your needs. Some wholesalers don’t even insist that you take the whole ‘batch’ (the groupings of goods that wholesalers put together to sell on) so you are able to pick and choose exactly how much of a particular product you need.

So, if you are afraid of approaching your wholesaler, the message is don’t be. The difference between wholesalers and retailers is less than you may think. You may have to jump through a few more hoops for your supplier but, essentially, both want your business – the vital difference being that wholesalers will cost you vastly less money. So have a look around – the wholesaler that could save you a large chunk of your budget could be just around the corner. Trade cards are issued on behalf of wholesalers like celdron.co.uk  to reward loyalty from businesses who buy their goods. Working much like standard retail store cards, trade cards also allow you access to a wide range of wholesalers and are a valuable sign that you are an established trader.

The reason that small firms can save money by buying wholesale goods isn’t because they ‘fell off the back of a lorry’ and ended up in a warehouse via the yellow Robin Reliant of a cigar-smoking market trader from Peckham. There are many, wholly legitimate, reasons why wholesale products are so cheap. Firstly, by simple economics, buying in bulk shaves a significant amount off the retail price. Also, as you are dealing with wholesalers keen to offload their goods, not the perfume counter at Harrods, these savings can be increased even further by a spot of persuasion (i.e. haggling – more of that later). The stock may be end-of-the-line products that have been replaced by an updated model or design but still perfectly usable. You will need to do a bit of research to find out what kind of condition these goods are in, but most wholesalers clearly label their stock and what you see is generally what you get. Many wholesalers also stock catalogue or chain store returns. When a customer returns goods to a catalogue company, for whatever reason, the product is automatically sent with other similar items to be sold off by wholesalers. The wholesaler then break these batches up and sell the goods off in smaller quantities at a massively reduced price. Small firms normally make the biggest savings when buying products from wholesalers in this way.

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