Several times when business owners heard the words "below wholesale" their first response is to assume the products are broken or compromised. Barring that, they assume it must be for brands or products that no one needs or has heard of.
Buying merchandise below wholesale can mean those things, certainly. However, it can also mean (when done right) a possible way to get the same products at much lower prices. Knowing the potential problems and having a plan in place to decrease your risk will help you reap a profit much more speedily and easily.
Potential Merchandise Problems: As described earlier, there can be some negatives when buying below wholesale is done wrong. Buying from disreputable sources or through an agent that hasn't proven themselves often results in merchandise that has been returned, is broken, or is not exactly what was listed on the manifest.
Damaged Merchandise: Different from being damaged in transit (below), this is when merchandise is returned to the store due to it is defective, broken, or somehow compromised. There is a demand for these types of items, believe it or not. Refurbishing companies make their money buying broken or damaged electronics, tools, and machines, fix them and sell them. However, if you aren't in the market to buy damaged merchandise, you'll probably be upset when you open your load and find this. Working with reliable sellers and understanding exactly what your manifest says is the best way to avoid this.
Transit Damage: Obviously, merchandise in transit always has the potential to be damaged. It isn't uncommon for a bottle of juice or shampoo to leak or spill through the load. Don't let the tiny risk of transit damage deter you from saving money. Several times the seller will help you recoup some of your cost or will replace the items if you politely explain the problem.
Different Products: Probably the most frustrating aspect of buying merchandise below wholesale is when the manifest is clearly not showedin the lot you bought. It occurs all the time and it occurs because there are dishonest sellers out there. They want to unload generic items. How better than to claim they are name brand? Again, this is a risk that can be mitigated if you take the time to learn the business.
Minimize Your Risk: Taking the time to work with a team that has experience finding suitable below wholesale merchandise, or learning the business yourself through trial and error, will give you an benefit over your competitors. You will be buying the same brands, products, and styles but you will be saving money.
Don't let the common fears and problems of buying below wholesale merchandise keep you from quickly and easily increasing your profit.
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