For entrepreneurs and small business owners, It always comes down to the questions - what to sell, how to buy it, and where to buy it? The key to a smooth-running business is finding the best source for your ingredients, packaging, and logistics.
So how do you find the right wholesaler for your business?
In this article, we will be discussing the basics of wholesaling, how it benefits your business, and how you can make the most of your wholesaler’s offerings.
What is Wholesale?
Wholesale means buying a product in bulk for a reduced rate. It is reliant on resale of products to retailers, other wholesalers, or customers directly for a markup. Wholesalers are the middleman of producers and buyers (most commonly, retailers).
Their capacity to buy stock in large quantities allows them to get the products at a lower price, which means that you can take advantage of wholesale discounts to increase your margin..
Pro Tip: Always ask about the minimum order and make sure you get a full breakdown of your wholesaler’s bulk discount pricing tier-list. Always consider the amount you need and your budget when making purchasing decisions.
Wholesale vs. Retail
Wholesale is buying in bulk at a lower price while retail is getting the products from wholesalers and selling them to customers in smaller quantities. This way, the retailer acts as a middleman of the wholesalers and the end consumers.
The retailers' prices are higher than wholesalers because of the inclusion of their companies' operating costs on their prices.
Advantages of Buying Wholesale
- Wide Variety of Selection. Some wholesale companies do not only stock one kind of product. They house different products to offer a wide variety of selection to buyers & for a diverse source of profit.
- Resell Opportunity. To ensure profit, wholesalers often include known brands in their inventory. Rather than starting your brand from scratch and needing to introduce your product to the public, your retail business rests assured of customers because of the familiar products sold.
- Lessen Shipping Costs. Lesser expenses for the company are always a plus, the best benefit of wholesale. Instead of accumulating shipping costs from small batches, bulk orders have lower shipping prices.
- Advantage Against Competitors. Regardless of your company's size, selling familiar products at discounted prices can be your edge to compete against corporations due to the low prices you get your items at.
Tips on Buying Wholesale
Now that we know the advantages of buying wholesale, let’s discuss some tips to help you get the best out of your purchase.
- Identify the Quantity You Need. Buying wholesale helps you save, but you still need to determine the right amount of products to buy. Some of the things you need to consider before purchasing are:
- Check your inventory. Do you still have stock that needs to be moved before new stock is sold? Do you need to buy large quantities? Being mindful of your order quantity will help you make the most of your wholesale investment.
- Consider your storage space. If you'd order a lot, do you have a space to store all of your inventory??
- Verify Expiration Dates. The main concern when buying in bulk is making sure that your products are still a long way from going bad so you don’t get stuck with expired (and unsellable) product.
- Check the Trends. If you're planning to be a retailer or starting your label, you will want to conduct some market research before purchasing. Look out for the kind of products booming in the market, and ensure you can carve yourself a reasonable margin.
- Find a Good Network. It's hard to start your business on your own. Building a network with other players in the industry can be a great help. Try to communicate with entrepreneurs selling similar products, and find business networks in online platforms to help you with your company's jumpstart.
- Consider Hiring a Consultant. It's never wrong to ask for help whenever you have a hard time, especially when it involves business. You might want to hire a consultant to guide and shape your business strategy.
- Compare Prices & Inventories. Check and compare the prices and offers of wholesalers in different locations around you. Going for the most efficient choice will help you maximize your savings.
- Optimize Your Order. Analyze your inventory and see which products are about to need a restock. Knowing your inventory cadence and tracking seasonality will help immensely in keeping your stock healthy.
Make Us Your Wholesale Source
Have you sourced high-quality aloe for your next product launch? Are you struggling to find a private label manufacturer that lives up to your ideal standards?
Let Aloe Laboratories help.
The best way to ensure that you're getting the highest quality cosmetic-grade aloe possible is to choose a company with complete control over the manufacturing process, from growing to harvesting and processing.
At Aloe Laboratories, we maintain our own aloe vera farm and production site, allowing us to craft the most desirable products possible while keeping bulk and wholesale prices low. We pride ourselves on producing aloe vera gel, juice, and powder specific to each customer's needs for their food-grade and cosmetic-grade products.
If you'd like to learn more about how aloe vera gel can enhance your products, or if you have some ideas of your own, reach out to us to learn more about our private labeling options and how we can help you make your product a reality.