How and from where do grocery stores obtain food at wholesale prices?
In the actual FMCG industry, large retailers do NOT buy at wholesale prices.That's because, wholesale is also a form of retail: it's bulk sales direct to consumers.Retailers usually buy from manufacturer sales division. And that's cheaper than wholesale, because wholesale has a markup on cost acquired from a manufacturer.Large companies have 2 main distribution channels: direct distribution (directly from supplier to stores) and centralised distribution(from supplier to own warehouse to stores).Both have significant advantages. But I'm going to explain the obvious one: cost.With direct distribution, the supplier/vendor carries the financial burden of storage, logistics, transport and risk. Of course, this is off set by higher prices to retailers.With centralized distribution, this burden is shared between vendor and retailer. This is then offset by lower prices to the retailer.The vendor would also offer deals and rebates on total sales targets, as opposed to individual invoice costs. This will increase profits even more for the retailer.Wholesale implies final selling price between retailer and vendor, ie invoice price, but in the industry, rebates and discounts make a significant impact on profit. For this reason, many FMCG items are sold “below cost” and the huge retailers still make a killing in profit.
Where do retailers get their inventory?
Philip, I understand your concern. However, I had to put in my question 'My dream..' and 'I am Serious' because of people like you. I said that I have found wholesalers but they do not seem trustworthy so the question was is there another source for purchasing inventory. on the other hand, Thank you Nada and Jon, the information is very helpful and helps me get a better understanding of it.
Where do eBay stores get all of their inventory?
I see these stores on eBay that have 100s and 100s of items for sale. For instance, the stores that sell antiques and stuff. Where do they get all of those items? Do they just buy them on eBay and resell them? Or do they go around looking for this stuff at sales?
Where can I buy lawn mower parts at a wholesale price?
If you are an established repair shop and have a tax number most of the wholesalers will sell to you, but often there is a minium of inventory you must buy and maintain. Some will send a salesman to keep your stock up to their standards. They come in and find out what has been sold or used and replace it and bill you for it.
How do Wholesalers that only sell food to restaurants make money?
I wish I could buy my food at these places like Jetro and the Restaurant Depot but one needs a tax form proving you are a restaurant or charity to shop there. How can these places afford to turn away customers like me and anyone else that wants to buy there when they are selling a perishable inventory (food)? Are these places subsidized or something? PS If you know of a loophole or backdoor to get in and buy from here please share. No I don't know anyone that shops there.
Where can I buy wholesale cigars?
Depends Some cigars must be bought from cigar reps dealing directly with manufacturers (Camacho, Oliva) or thru the wholesale distributer (Santa Clara - retail is JR Cigars) However, if you do not have the capital necessary to make large purchases, you will not be eligible for limited edition/difficult to obtain cigars that smokers look for. You'd have to buy them at MSRP prices from e-tailers. I have several friends who happen to be cigar reps and in their opinion, cigars shops/lounges with startup capital in the $200K to $250K range will have the best chance of making it. This is to ensure a decent inventory, daily operating costs and personal living expenses. Than again, your Business Plan should have told you this as well as given you a list of cigar reps and wholesalers.
Where can I purchase items wholesale for my boutique?
A2ABoutique type clothing needs to be very exclusive. That’s the only edge one has over tons of competition out there.Regular whole sellers sell to everyone and there’s no exclusivity. Stay away from them, otherwise you will end up with junk inventory and it may cause cash flow issues.You’ll have to work hard. here are few suggestions;1. Visit Merchandise mart close to you, may be you have to travel to a big city near you. Visit the Reps and check if they have any first quality samples for sale. Before planning a visit you can do your home work, by calling and making sure who carries the merchandise you are looking for and setting up appointments.2. Go to the shows, small and big ( including Magic). Get future apparel shows list on line.Make sure you attend the show towards its ending. Meaning a day before last day ( to take notes on who has the merchandise you like) and the day of closing. On closing day you should get there early, to get a parking close to the show, with some cash on hand. Lots of exhibitors are willing to sell their display samples, rather than carrying them back. Most of them don’t have credit card set ups as they did not come there to sell, so If you have some cash available and have done your home work a day earlier, you’ll have a list of booth numbers you need to visit and negotiate.3. At the show, you can order first quality goods as well for a future delivery. You can even request an expedited or delayed delivery according to your plan.3. At every single show, make sure you collect the business cards from the vendors you like. Even if you don't purchase from them, you want to be on their mailing list for future events/ offers.On the back of the card write down about their specialty. Better even, is to carry a journal or note book, dedicate one page to every vendor you like. Keep a tiny stapler in your hand bag. Staple the card on the top and write down some notes for future reference. Otherwise you’ll end up with bunch of cards with no clue to who they were. Now with smart phones and i Pads, you can take pictures of the merchandise with vendor’s card for easy reference. Idea is to take full benefit of your visit and maximize the opportunity.4. Never buy anything everyone is buying. Don’t get tempted. Be exclusive.Best of luck,