The Helpful Pointer

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The basic business model states that for an owner to make money, they must provide a product or service at a higher fee than their costs. Looking at it from a different perspective, if you are selling products, you are buying items at a reduced cost and reselling them at a higher price.

Many business owners buy small amounts or one-of-a-kind items to resell to their customers. But there is a whole other kind of product buying and selling going on - one that can net a significantly larger profit: buying bulk from closeouts, inventory sales or liquidators.

This type of buy-sell relationship is usually termed bulk reselling, and it’s what we’ll focus on for the next couple of entries. From finding wholesalers to storing the “stuff”, to selling it and recouping your expenses, we’ll get into the nitty gritty that is bulk reselling using the Internet as a vehicle.

COSTING OUT WHOLESALE BULK SUPPLIERS

Arguably the most important part of being a bulk reseller is locating (a) reliable wholesale supplier(s) that offers excellent customer service, support and prices. This usually means you’ll spend weeks surfing the Internet, bookmarking interesting companies and doing a tremendous amount of research to determine if the bulk reseller(s) in question have the wholesale supplies you are looking for.

Since bulk reselling means dropping a tidy chunk of change in one fell swoop, examine your cost-saving options carefully. Some things to investigate are:

Payment Options
Can you pay in 30, 60 or 90 days? With a credit card? Although not common with bulk resellers, some do offer dropshipping direct to each of your end users/customers. This feature can save you a tremendous amount of time, energy and money if you plan on selling any more than 10 of the same item.

Shipping Charges
These can differ widely depending on what you are purchasing and who you are purchasing from. Some liquidators even offer free shipping if you take a large enough sum of items off their hands.

Receiving
When and where will you receive these items? If the bulk reseller shipment shows up while you are at work, how will you retrieve the items later? Also, where will you put it all when they are delivered? (This can also help you to decide what exactly you want to resell, but we’ll get into that aspect in another entry, later). Cost out some local self storage companies just in case.

Profit Considerations
Research each item you are looking at purchasing from a bulk reseller. Check online and see what other companies are selling the same (or similar) items for, and compare those prices to what you’ll be paying PER ITEM (including shipping charges and storage fees). If your per item cost is less than half of what everyone else is selling something similar for, you’ve got a winner.

After you’ve compared and constrasted bulk suppliers, you are ready to start creating a system to get the items you chose out the door and making you money.

Jim Staley is the is the CEO for WholesaleGopher (http://www.wholesalegopher.com/), one of the most trusted dealer and distributor directories on the Internet, offering visitors wholesale items, import and export goods, surplus and closeouts from true wholesale sources.