Welcome to the WholesaleForum.com! Sign in or Register Free to benefit from our full range of free services

Welcome to Wholesale Forum.comWelcome ToWholesale Forum.comFind wholesale buyerstrade buyers and wholesale offers free

For Buyers

Wholesale Forum is the fastest growing online business community dedicated to retailers, auction sellers, surplus and overstock buyers needing a quick and safe solution for sourcing trade stock. Join our free and friendly forums today and gain knowledge, offer your advice, and discover new partnership opportunities:

For Suppliers

For wholesalers, dropshippers, manufacturers, distributors and trade services providers. Advertise your business today on WholesaleForum.com for free to reach potential trade buyers on a more personal level. Promote your latest offers, interact with buyers in real time, distinguish yourself as an expert in your field, and attract sales instantly.

Sign up now More benefits for Buyers
Sign up now More benefits for Suppliers
    1. samhol is offline

      Join Date
      Aug 2011
      Location
      United Kingdom
      United Kingdom
      Posts
      5
      Thanks
      1
      Thanked
      1 Time in 1 Post
      #1

      Benefits and pitfalls of bulk-buying - Pros and Cons of holding stock

      Just a few questions I'd like to pose:

      1. What are the benefits of bulk-buying and what are the main pitfalls?

      2. When negotiating with suppliers, how significant is quantity when determining a price?

      ... and finally,

      3. In your experience, do smaller businesses enter into long-term contracts with particular supplier, or do businesses frequently research, compare and shop around for better deals.

      Thanks in advance of your forthcoming pearls of wisdom.
      Over 150,000 Verified Sources + Deals 95% Off MSRP + Free Website!

    2. WFModerator is offline

      Join Date
      May 2011
      Location
      United Kingdom
      United Kingdom
      Posts
      127
      Thanks
      1
      Thanked
      15 Times in 13 Posts
      #2
      Hi Samhol,

      Welcome to Wholesale Forum

      Quote:

      1. What are the benefits of bulk-buying and what are the main pitfalls?
      Some of the benefits of buying in bulk include:
      - Substantial discounts per unit, which means a higher profit margin for you
      - Knowing exactly how much inventory you have in stock
      - The ability to add your own marketing materials (deals, coupons, promo codes, etc.) inside packages
      - Being able to guarantee accurate shipping times
      On the other hand, there are some drawbacks when it comes to buying in bulk that you have to factor in. For example, the power to be in control of most things will come at a price (time/money). This means youre going to need room to warehouse your goods, track inventory, cover shipping costs, etc. The biggest disadvantage would have to be not selling anything. Most businesses go bankrupt when they put all their eggs in a single basket that doesnt pump out at least a few clucks or shall I say bucks.

      Quote:

      2. When negotiating with suppliers, how significant is quantity when determining a price?
      Quantity is very important when it comes to price breaks. For example, you need to know how much you want when youre negotiating with a supplier. Prices will range greatly from the minimum order quantity (MOQ), to orders that are much more than that. So before anything else, always ask for their MOQ price, and from there you can begin the process of negotiating a better price for the quantities you need. The more you can buy, the more power you have.

      Quote:

      3. In your experience, do smaller businesses enter into long-term contracts with particular supplier, or do businesses frequently research, compare and shop around for better deals.
      From our collective experience, we believe most small businesses out there benefit greatly from long-term contracts since they spend less time drumming up more business and more time working on the business. But most importantly, it means honing your system(s) down to prepare for new work in an well-ordered, repeatable routine that benefits all.

      Hope this helps
      Want To Be An eBay Powerseller?
      This is the Service You Need.

    3. Thank you for this post:

      samhol (02 Dec 2011)

Sign Up Now

Got something to say? Sign up now and join the discussions.

Similar Threads

  1. Has anyone used x-cart? Whats the pros and cons
    By Remadein08 in forum Website Design & Hosting Discussion
    Replies: 15
    Last Post: 24 Nov 2010, 06:33 AM
  2. Pros and Cons of sourcing from China
    By Silvia 114 in forum Import & Export Discussion
    Replies: 8
    Last Post: 15 Mar 2011, 11:20 AM
  3. Pros And Cons Of Flash Website Intros
    By Marygood in forum Website Design & Hosting Discussion
    Replies: 18
    Last Post: 11 Jul 2011, 09:06 AM
  4. Anyone have experience using cs cart? Would like both pros and cons!
    By CountryGirl in forum eBay, Amazon & Online Marketplaces Discussion
    Replies: 8
    Last Post: 01 Dec 2010, 07:51 AM
  5. Pros And Cons Of Free Shipping - Advantages and Disadvantages
    By Cheaplists in forum Shipping & Shipping Documents Discussion
    Replies: 19
    Last Post: 30 Sep 2010, 06:30 PM
  6. The Pros and Cons of Cash vs. Checks vs. PayPal vs. Credit Cards
    By wholesaleinsight in forum Payments & Finance Discussion
    Replies: 1
    Last Post: 01 Nov 2010, 06:26 AM
  7. Reselling Perfumes online - The pros and cons of selling fragrances
    By Bugger in forum Starting & Growing Your Business Discussion
    Replies: 2
    Last Post: 11 Jul 2011, 11:10 AM
  8. www.opencart.com Review & Opinions - Has anyone used OpenCart? Pros and Cons
    By Alpope88 in forum Website Design & Hosting Discussion
    Replies: 13
    Last Post: 19 Nov 2010, 01:42 AM
  9. Replies: 1
    Last Post: 05 Oct 2011, 06:58 AM

My Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
All times are GMT -4. The time now is 08:57 PM. - Fixed Width