Wholesale Dropship Dropshippers

They’re retire happily in a couple of months, and buy a big house in Beverly Hills, complete with a butler, a private chef, and a little satin doggie bed in every room for the casual use of the family Basset Hound, Duke.

Then they find that they may actually have to compete with companies who have more buying power and get better price breaks, and suddenly the honeymoon is over. They run around screaming that the supplier is not a real Wholesale Supplier, and is cheating them. The sky is falling, and it’s time to get Duke to the storm cellar because all their dreams are being blown away by bad, BAD people who claimed to be Wholesale Supplier, and really are NOT!

The truth is that they’ve simply been confronted with a perfectly normal aspect of retail sales that they had not anticipated, and need to be educated about.

Even when using genuine Wholesale Supplier, you're going to find some stores selling products at a "retail" price that is lower than your Suppliers’ "wholesale" price. There are VERY good reasons why you'll see this happen, and it's extremely important to understand why it happens and what to do about it in order to sell successfully on the Internet or anywhere else.

As I said, it happens for a variety of reasons; the most common of which is that the retailer with the "lower than wholesale" price is a large retail operation that bought THOUSANDS of the product at a dirt-cheap quantity price break, and also qualified for huge manufacturer's wholesaler rebates. You can't compete against that with a home business; no one can.

The term "wholesale" is relative, no matter who your distributor is or how you find them. What you're getting as a small business is a Wholesale Supplier's genuine "first level" wholesale price.

For example, one factory-direct Wholesale Supplier we work with has an initial wholesale price for 1 to 36 dart boards. Then the second price level is reached, and there's a lower price for 36 to 72 boards, for example, then a lower price for the next higher quantity level, etc. When dealing with single item orders in your home business, you are obviously going to be getting the "first level" wholesale price.

For example, if the Manufacturer's Suggested Retail Price (MSRP) for a VCR is $149, and it is available at "wholesale" for $69.00, that's a 54% discount off MSRP. That's a pretty good profit, right? However, with everybody getting roughly the same price break, there are a lot of people out there who are ruining the market for everyone else by selling that product for, say, $79, thinking they will undercut everyone else and make money by selling volume. Pretty soon, everyone else sees this, and tries the same thing. Eventually, the Internet "market price" for this VCR BECOMES $79, and everyone is flooding the market with it at that price. That's only a 13% percent profit margin, and that product is no longer worth the effort for anybody.

So, even though the product IS available initially at a great wholesale price, its market value is ruined by those who (wrongly) assume that the only way to sell is to have the absolute lowest price anywhere.

Sales is much more of an art than that. If selling something were simply a matter of the absolute lowest prices, Wal-Mart would be the only store on the face of the Earth.

Without going into too much detail, sales is a mixture of choosing the right product, or combination of products, for your web site. It's presenting a clean, attractive, focused site. It's giving the customer some little value-added bonus at your site. It's providing the absolute best customer service that you can. All these things help a customer to trust you, and when they trust you they are willing to spend a little more to buy from you.

More...

Chris Malta
WorldWide Brands, Inc.

Click Worldwide Brands Wholesale Dropship Dropshippers For More Information