Wholesalers are in business to sell large amounts of merchandise to those who are going to resell what they buy. To buy wholesale, a business license is usually needed, although some establishments will sell to the general public at times. The price is often marked up some and tax is added, but it's less than buying retail. Usually, buying at wholesale prices will save you money. Follow these five tips to take advantage of lower prices by buying wholesale.
1. A business license and tax number are need in many states to buy wholesale. If you have a hobby or interest and use a large amount of some supply, you might want to get a business license so you can buy wholesale. If you resell whatever you buy, you may also need a reseller's license and have to meet certain tax requirements; you'll have to have a tax number and charge state and local tax on your product and pay it to the proper entities. You may also need a permit to operate a business in your hobby's category. Since these licenses and permits have fees associated with them, you will need to calculate how much it will cost you to set your hobby up as a business; it may be less expensive to buy at retail costs or seek other options. A good way to find out what your state requires is to go to their home page and look under "Setting up a New Business" or similar topic. All the requirements for your state will be listed there.
2. Call local wholesalers and ask if they allow the general public to shop. Some have special hours; most will add a little to the wholesale price but it will be less than buying retail. If you use a large amount of a particular item, buying at slightly above wholesale could save you quite a bit. For instance, some local wholesalers of florist supplies allow the public to buy straw wreath forms, greenery, holiday picks, and other supplies a couple of months before the holiday season; these sales are well-attended by many who want to decorate their homes or make floral gifts. Sometimes wholesale prices are offered at special sales that hold presentations in hotels or convention centers and are only in town for a few days.
3. You may have seen infomercials on TV for groups that offer wholesale prices for homeowners who want to buy furniture and other household goods or for those who are building a home and want to save on everything from appliances to lighting fixtures. These groups require an enrollment fee that can be pricey, but if you are building an expensive home you can save quite a lot of money. If you join a wholesale club, you'll be able to order a wide variety of goods and pay wholesale prices for them. Calculating the club membership price and how much you will save on what you plan to buy will enable you to determine whether you'll be saving money by joining.
4. Sample sales are another way to buy at wholesale prices. Manufacturers must display their products at market or trade shows, since buyers want to see a product before ordering, and manufacturers' reps also take sample products around to show to buyers. These samples are sold at certain times at a reduced price to make room for new products; ads are often placed in newspapers or local magazines telling the date, time and place of the sale. If you live in or near a large city that has a trade market, check the newspapers or ask around for details of the next sample sale. If you know someone who works in a certain business in whose products you're interested, ask for advance notice of sales. Check with professional friends, such as interior designers, contractors, beauticians, etc., who can buy at wholesale prices; offer to buy their lunch if you can go with them to market.
5. Shop at warehouse clubs that sell to small businesses, outlet malls, or resellers. Stores such as Sam's Club, Costco, Marshall's, TJ Maxx, Ross Dress for Less, and Big Lots often have prices that are close to wholesale on some items. Become a savvy consumer by always checking prices on important items you want to purchase and doing some comparison shopping. Many stores reduce prices on discontinued items or odd lots to almost nothing; if you are a frequent shopper you'll get the best deals since they go to the early bird. Look around for stores that buy large lots of damaged cargo; often a torn box will be the only problem and the price will be very low. Prices lower than wholesale can often be found if you learn how to be a wise shopper
