Seeing The Whole Picture A Wholesaler s Role In The Retail Chain
Below is a MRR and PLR article in category Internet Business -> subcategory Web Hosting.
Title:Seeing The Whole Picture: A Wholesalers Role In The Retail Chain
Word Count:
556
Summary:
You probably realize that, as a retailer, you need to get as close as possible to the source of your products to maximize your profit margins. But if youre like most retailers, you may think that means going to the product manufacturer. You might assume that because the wholesaler stands between you and the manufacturer, the wholesaler is a middleman. But by that logic, you as a retailer are also a middleman, standing between the manufacturer and the end user.
To Each His...
Keywords:
ecommerce,estore,auction,online store,home business,ebiz,wholesale,wholesalers,distributors,products
Article Body:
You probably realize that, as a retailer, you need to get as close as possible to the source of your products to maximize your profit margins. But if youre like most retailers, you may think that means going to the product manufacturer. You might assume that because the wholesaler stands between you and the manufacturer, the wholesaler is a middleman. But by that logic, you as a retailer are also a middleman, standing between the manufacturer and the end user.
To Each His Own
The fact is that each one of these entities plays an important and necessary role in the retail supply chain:
The Manufacturers primary function is making productstheyre not set up to supply individual retailers with small quantities of those products. Through a very complex process, they qualify and authorize a select few wholesalers to distribute their products to retailers on their behalf.
The Wholesaler, according to Don Beavers, of http://www.VertexAirsoft.com, provides a tremendous service to both the manufacturer and the retailer alike. Wholesalers have the necessary infrastructure to stock massive amounts of product, and to take and fill retailer orders. They have the warehouse space, sales networks, and computer and tracking systems in place. Not only are they required, by manufacturers, to order astronomically high product quantities that an individual retailer couldnt afford, theyre also required to carry the manufacturers entire product line, rather than just their hot sellers.
The Retailer is the last necessary link in the supply chain to get the products consumers are demanding into the market. The same way that a manufacturer isnt set up to sell to retailers, wholesalers arent set up to sell to individual consumersretailers fill that need.
A proper supply chain looks like this:
Manufacturer→Wholesaler→Retailer→End User
Cutting In
Often, however, as a retailer, you lose out when extra links are added to the chain:
Manufacturer→ Wholesaler→ Middleman→ Retailer→ End User
Unfortunately, there are many middlemen eager to get in between the wholesaler and you. They claim to be wholesalers themselves and pass real wholesale goods on to you at marked-up prices, eating away at your profit margins. Youll find plenty of middlemen in the search engines, but very few wholesalers. To find Authentic Wholesalers, you need to contact the manufacturer for their list of Factory-Authorized Dealers.
Working with Wholesalers: How and Why
To earn serious money as an online retailer, you absolutely have to work with REAL wholesalersand that means getting a legal business name and Tax ID. You may be tempted to skip obtaining these so you can avoid the paperwork. But without them, you cant establish accounts with any genuine wholesalers. Any supplier that tells you they dont need your Tax IDno matter what explanation they give youis a middleman, NOT a real wholesaler! Period. No matter how tempting it is to try to find product sourcing shortcuts, it will cost you in the long run.
Getting genuine wholesale pricing lets you charge competitive prices and still be profitable. Real wholesalers supply your business with the products you need, at the prices you need. Insists Beavers, If you want to make your living from your internet business, real wholesalers need to be a major part of your product sourcing strategy!
You can browse and read all the articles for free. If you want to use them and get PLR and MRR rights, you need to buy the pack. Learn more about this pack of over 100 000 MRR and PLR articles.