The Benefits of Buying Wholesale for Retail Businesses
As a retailer, finding the right source for your goods is an extremely important part of the process- and many agree the best way is through a wholesale supplier. The whole idea behind it being the most effective method is due to wholesalers allowing businesses & individuals to purchase goods in large quantities but at a discounted price. As we delve further into the benefits of wholesale purchasing, we’ll paint a picture to show you why working with a wholesaler just might be the thing for you.
Cost Savings & Profit Margins
As mentioned earlier, wholesalers offer goods at a discounted price when you buy in bulk directly from them- cutting out the middleman. These discounted prices give great savings, which you can then pass on to your customers by keeping operating costs low and increasing profits margins! Operating costs include the cost of goods sold (COGS) and other costs such as rent, utilities etc.
Plus, when buying wholesale the cost per unit of each item decreases, as well as reduced shipping costs per unit, which makes it a much more economical process. These savings you make allow you to be more flexible in pricing, meaning retailers can offer discounts & lower prices whilst still keeping a good profit margin.
Diverse Product Range
Wholesalers often have a huge range of products, allowing retailers to source products from different categories through one supplier & making the process of ordering stock as easy and hassle-free as possible. This also saves a lot of time by cutting out the need to find multiple reliable suppliers & allowing more time to be delegated to other tasks!
Buying in bulk also means buying less frequently, leading to more time free to work on other jobs. It also means that retailers are able to consistently ensure their best selling items are always in stock, leading to better customer satisfaction & an increased likelihood they’ll return to shop from you.
Wholesalers may also carry niche items that are not as readily available in the general market, which is great for having that edge over any competition. Plus, when you diversify & expand your product range, this can help to attract a wider customer base!
When sourcing your stock from one supplier, this allows you to receive your items quickly and without stress as you only have to deal with one supplier! This is also great or when any problems arise as again, you only have to deal with one chain of command!
Having all the products online as well as their prices is a convenient and easy way to stock up on your goods!
Quality Control
When buying your goods from reputable wholesalers- such as Rysons, in the game for over 50 years- because of their direct relationship with the manufacturer, they are able to ensure the products are genuine and meet quality standards- each and every time.
Plus, wholesalers, when receiving a batch, will sample the products to ensure the overall quality and also work on improving the quality of future batches by providing the manufacturers with feedback. This quality control all feeds into customer loyalty, as the customer is able to be confident in the quality of their goods every purchase.
Building Lasting Relationships With Wholesale Suppliers
When buying from a single wholesale supplier, over time a mutually beneficial relationship between the two parties develops, built on trust & understanding. Through this, open channels of communication are established, leading to both parties being able to address any concerns in a stress-free and easy way. The relationship is made and maintained by the wholesaler being able to consistently provide quality products on time & at competitive prices, and the retailer being a consistent customer.
Negotiation power also comes into play when relationships have been established, as wholesalers will be more keen to give discounts, deals and partnerships to retailers they know & trust. This can be great for retailers wanting to keep costs low- and profits high!
Through these relationships, as a retailer you will be given access to industry knowledge that the wholesaler has acquired over their years of experience- such as trends, insights, feedback and more. Plus, the wholesaler is able to tailor the advice they give to retailers through this relationship and offer solutions based on their specific needs. Through this collaboration, the aim is for mutual growth to be seen which results in success for all parties involved.
Another great benefit is retailers are able to customise their product selection to cater to the specific demand from their customers. For example, they can order specific quantities of various products. This helps to save on storage space being used up for longer periods of time and makes room for a more diverse product range!
Overall
Overall, as you have seen, there are many, many great benefits when buying wholesale as a retailer. From cost-efficiency to quality control and beyond, retailers experience many fantastic advantages when buying wholesale that can help to lead to better customer satisfaction, loyalty and more success!
