The Wholesale Forums

[sb1987]

Hi

I thought I would make this quick guide to help resolve all the common questions most noobies ask when getting involved with wholesaling.
The majority of newcomers come on the forum and presume the best market to get into is Electronics, such as mobile phones, IPods Nintendo Wiis etc. You guys must remember that this market is very popular for sellers and bigger companies such as Carphone Warehouse, The Link etc. These companies have the funding available to enable them to purchase these phones in the tens of thousands and in most cases the more you buy the cheaper your going to get each product.

This means that a sole trader like yourself who on average will only be buying say 10 phones at a time will be purchasing these phones at a much higher cost than the bigger companies MEANING in order for you to sell your phones your going to have to reduce your profits by lowering your prices to compete as customers usually always buy from the cheapest source possible.

This is why most experienced members advice on this forum will guide you away from electronics and go into a less busier market where companies have less interest in BUT where buyers (which may not be as popular as the mobile phones) will be interested in but in smaller numbers but where buyers still need a seller to provide them these products and since the bigger companies are not interested this is where you come in. By you finding a product not being sold on the high street a buyer will more than likely buy from you as there is less competition to attract the buyer as there are less sellers of this product.

An example product I was selling was dog and cat bowels which had a spill mat attached to the bowel so when the pet spilt food it would go on the mat instead of the floor, saving the owner the need to get on there knees and clean the mess up. I bought these bowels for 40p each and sold them for £3.50 plus £1 delivery. Not much but if I sold enough of them I would make a descent profit.

You also must remember guys it’s very very unlikely that you will be able to make big cash fast from wholesaling. Many new people believe that there is big money to be made with little work, this is wrong. It takes a lot of time and some days you can make little profit if any at all. The key is to finding the right product at the right time for the right price and selling to the right market. You must remember it is possible and motivation and dedication will get you there.

Best of luck

Sb1987

[hsnadrs]

Thanks, but most joined members are looking for wholsalers, they will then decide what thing to sell. then if they got wholsalers the startup sellers those want to test the water facing a problems on registeration with them without VAT,....etc.
I suggest for some one to list a wholesellers for startup sellers, then a seperate list of big wholesalers.

[ka08]

sb1987 I agree partly to your message.
That there are, always, big companies in the electronic field is true; but there are big companies in every industry! It is NOT neccessary to reduce your profits by lowering the price to compete with those big companies!!! Its all about strategies and plannings; Even if you buy the items at a higher cost, if you can provide extras or better services you can even raise your price to make more profit.

In my opinion, one can earn, even if the market got saturated, as long as he/she does enough researches, plannings and searchings. And most importantly don't give up on searching, learning and planning. Find the right products, right suppliers, and right places, then there goes your big cash!

[greedyboy]

Originally Posted by ka08

In my opinion, one can earn, even if the market got saturated, as long as he/she does enough researches, plannings and searchings. And most importantly don't give up on searching, learning and planning. Find the right products, right suppliers, and right places, then there goes your big cash!

That is correct. However you forgot one crucial factor when operating in these markets - you have to move stock FAST!

[ka08]

Originally Posted by greedyboy

That is correct. However you forgot one crucial factor when operating in these markets - you have to move stock FAST!

Good Point!!!!! And it takes lot of practices and researches to do so. It is difficult to learn/ master it; yet, no pay no gain!

[sb1987]

Originally Posted by ka08

sb1987 I agree partly to your message.
That there are, always, big companies in the electronic field is true; but there are big companies in every industry! It is NOT neccessary to reduce your profits by lowering the price to compete with those big companies!!! Its all about strategies and plannings; Even if you buy the items at a higher cost, if you can provide extras or better services you can even raise your price to make more profit.

In my opinion, one can earn, even if the market got saturated, as long as he/she does enough researches, plannings and searchings. And most importantly don't give up on searching, learning and planning. Find the right products, right suppliers, and right places, then there goes your big cash!

I agree it is still possible to sell without lowering profits if you can include something more appealing to attract the customer to buy from you than someone else.
I would suggest that newbies have a better chance of making a profit in the less saturated markets first though as i feel its easier to learn from the less competing but sellable products.

[tapeandlabel]

thank you for your advice. It is very helpful, especially this sentence: The key is to finding the right product at the right time for the right price and selling to the right market..

But in my opinion, the first thing is to try then adjust your doing step by step
good luck to you all.

[Mattvvid]

Hi
I am an interested newbie, having had some good and bad experiences are a buyer I think there's much to be said for having credentials as a seller. But as a NEW seller that comes only with time (and good practice)
In terms of right product, right price, right time and so on, your point about specific products generating better margins rings true. So, lets say we identify that a certain boardgame (say) is going to be hit, how do we source the wholesaler?
Thanks!