Retail Wholesale

Wholesale Retail – Save And Earn Money When You Purchase In Bulk

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Are you thinking of venturing into a business wherein you can earn an income without having to specialize on something? How about if you venture into what we call as wholesale retail ? Well, first things first let’s define what is wholesale. It is a sale in bulk to a retailer from the manufacturer of the products or distributor.

Then, next stop would be retail. It is the selling of goods from the retailer going to the end-user or the consumers themselves. If you are going to ask where does wholesale retail takes into the picture? It’s basically you saving money in the process through buying in bulk and earning profit out of your purchase through selling it to the end-users.

What you basically do is buy wholesale goods from a manufacturer, and then you sell the goods at retail prices to the consumer that’s it. Basically, you are the retailer in this situation.

If you would ask why just a wholesaler sell the good to the consumers right away, leaving the retailer behind. The answer to this question is simple. There are laws that barred wholesalers i.e. distributor and manufacturer to sell in bulk goods towards the consumers. The good should be passed on the retailers, and it would be the retailers who will hand over the goods to the consumers.

How can you save money in the process of doing wholesale retail? To give you an idea, here is an example.

The goods that you are about to buy would be netbook. These are electronic goods of which you can sell to the retailers at a very good price. If you are going to buy 100s of netbooks at $150 each and its current market price is about $250 per netbook. You will be generating a total of $10,000 as net profit for the sale of 100 netbooks you have bought from the manufacturer provided that you do sell all the netbooks.

On the wholesaler point of view (manufacturer), let’s say the total cost of creating a netbook is $125 and they are selling it at $150 for every 100 netbooks that is a total of $2,500 profit. If you are going to look at it, how come wholesalers would like to take a profit of this small when they can get $10,000? The answer is simple – retailers are buying by bulk. Thus, that would be the net profit for just one sale. As for the retailer, it would take some time to get the net profit of $10,000. It depends on the turnover of the netbook, how saleable it is to the public.

Now that you got the picture as to how wholesale retail works, do you want to consider venturing into this kind of business? The choice is all up to you.

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