5 Quick Tips on Ordering Material Handling Equipment in ...

Money, money, money! It&#;s the rich man&#;s world as the stellar Swedish pop group Abba once sang.

The truth is, if you&#;re in business then you don&#;t have to be rich to be concerned about money, money, money! Every dollar you save is absolutely crucial, and the more dollars you save, the more capital you will have to plough back into your company. If you want to thrive, succeed and expand as a business, then you&#;ll need to think about cost savings at every opportunity.

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One excellent and intuitive way to save money is by buying in bulk. If you buy in bulk, then you will be able to buy your items at wholesale, rather than retail prices. The savings you make can be quite staggering, and they will free up vital cash that can be used elsewhere.

Here are 5 quick tips on how you can save money when ordering material handling equipment in bulk.

1.     How Will Ordering Material Handling Equipment in Bulk Benefit My Business?

The key aspect, as mentioned above, is money. Wholesalers are cheaper than retailers, and buying in bulk is cheaper, per unit, than buying on an individual basis. You may ask yourself, why is this?

First, a retail premises has significant overhead. A retailer is basically a showroom &#; goods are on display, helpful staff is always around and a retail premises is always brightly lit and warm. People go to retailers if they are not completely sure about what they want to buy, or even if they&#;re unsure if they want to buy anything!

Companies more than individuals or members of the public go to wholesalers. They already have a very concrete idea of what it is they wish to purchase. Wholesalers are in the business of supply &#; you want it, they have it. To this end, there is less pressure to make sales at the business end, so no flashy displays or pushy sales staff or brightly lit showrooms.

By purchasing via a wholesaler, you are generating money for them, and as their overheads are low for the reasons described above, their prices are much lower as well.

2.     Why is Buying in Bulk So Much Cheaper Than Buying on a Per Unit Basis?

There&#;s a lot that goes on &#; even with a wholesaler when it comes to complete order fulfillment. An ordered item has to go through the inventory system, be picked, be sent to the area that deals with logistics, packaged, checked out and then delivered. Imagine if a company, when faced with one hundred orders, had to do this one hundred times. They would lose money &#; on a per unit basis &#; with the time taken to get the item through the ordering process, package, and then ship.

How much easier would it be for a supply company to be able to send all one hundred items in one order? How much money would they save if they pushed such a bulk order through their processes, packaged the order as one and then shipped to one delivery address?

The answer to the second question is &#;a lot&#;! That&#;s why decent discounts are offered on bulk purchases, and why such discounts are passed on &#; at least in part &#; to the purchaser.

3.     Wholesalers Appreciate Your Repeat Business

Even for wholesalers, margins can be tight. Despite saving money through selling in bulk, they often shy away from launching country-wide advertising campaigns, and having massive displays on billboards all around major retail centers.

Wholesalers rely on two main tactics in order to attract customers. First, word-of-mouth. A wholesaler will sometimes bend over backwards in order to give you good service, so you can really reap the benefits. They do this because they want you to recommend their services to other people you might know who may wish to use them.

Secondly, they want to see you time and time again. A retailer is only really interested in making a single sale, mainly because when it comes to consumers there are plenty more fish swimming in the buying sea. A wholesaler thrives on repeat business, so they will really want to go the extra mile for you. They will work with you so that they really get to know you and your business. That way they will understand how they can best serve you. If you have a satisfactory experience with them, the chances are you will use their services the next time you are looking to fulfill a bulk order of material handling equipment.

4.     You&#;ll Get a Wide Range of Specific Items

A retailer sells a few models of many items within the same niche. A wholesaler typically sells niche items, but many models of each, giving you greater variety. The main benefit of this is choice &#; you will get to pick from many items, all of which are capable of performing the function you&#;re looking for when it comes to material handling equipment. Because you&#;ll have access to such a large stock of products, you should be able to precisely find an item that exactly fits what you are looking for.

Choice can be confusing, but as a wholesaler is typically an expert when it comes to the supply of the items you are looking for, they will be more than willing to help you make the perfect selection.

5.     The Best Tip for Purchasing Material Handling Equipment in Bulk

Make your purchase from Douglas Equipment! Here at Douglas Equipment we tick every box for each tip that&#;s listed above, and we&#;re ready to help you make the perfect decision when it comes to your material handling equipment purchase. Our friendly staff is always ready and able to take your call &#; simply dial 1-800-451- to reach us. You may of course use our online contact form as an alternative and we&#;ll follow up with you via or as soon as possible.

So, you're diving into the world of retail? One of the initial puzzles to solve is where to get your products from. Basically, you're looking at buying stuff in bulk from wholesalers.

Most retailers don't manufacture their own goods. Instead, they rely on wholesalers to supply them. These wholesalers aren't just handy for stocking your shelves; they can also adapt as your business grows.

Buying wholesale might feel like stepping into the unknown at first. That's why we're here to share some pointers on how to kickstart this process. We'll cover everything from finding wholesalers to snagging those wholesale prices.

Here's what we'll dive into:

• What exactly is buying wholesale?

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• Where to find wholesale suppliers

• How to pick the right wholesale products

• Tips for purchasing high-quality products in bulk

• Any other key things to keep in mind when buying wholesale

Let's get started.

What does buying wholesale mean?

Ever wondered how businesses get their hands on the products they sell? Well, there are two main routes: Wholesale vs retail. When you opt for wholesale, you're essentially cutting out the middleman between your store and the manufacturer.

Wholesale purchases usually mean buying in bulk, and because of that, you snag a discounted price. Once you've got your goods from the wholesale companies, you can sell them in your shop or online store at a higher price to turn a profit. That higher price? That's what we call the retail price &#; what your customers pay when they shop with you. They're cool with paying more because you're handling all the logistics, from buying and storing wholesale items to providing top-notch customer service.

Buying directly from manufacturers can be tempting since it cuts out even more middlemen, potentially lowering the cost per unit. But here's the catch: manufacturers often sell in huge quantities, which might not be feasible for smaller online retailers. Plus, they might not offer the same variety as wholesalers.

So, which route should you take? It all boils down to factors like your business model, your products, your target market, and your financial situation. If you've got a killer product line and want full control over how it's sold and showcased, going the retail route could be the way to roll.

Wholesale vs retail

When it comes to buying from wholesalers versus retailers, each option comes with its own set of pros and cons.

Buying from wholesalers offers the advantage of a lower cost per unit, thanks to the fact that you get to buy in bulk and benefit from economies of scale. However, this route may require buying in large quantities, potentially leading to overstocking or tying up cash flow.

On the other hand, buying from retailers provides flexibility in purchasing smaller quantities but often at a higher cost per unit. The difference between the wholesale and retail prices is called the margin, representing the profit a retailer makes from a sale. Retail prices vary between businesses, and different pricing strategies can be employed to determine the best retail price for a product. Once the retail price is established, calculating the gross profit becomes straightforward.

How do you price wholesale items for resale? 

Pricing wholesale items for resale involves understanding the gross profit formula, which is Gross Profit = Revenue &#; Cost of Goods Sold (COGS). Your revenue is essentially the retail price you charge your customers, while COGS encompasses all variable costs associated with procuring and selling the goods. Since you're purchasing from a wholesaler, your COGS is typically the price you pay for the product.

The gross profit represents the money you make from a sale. Retailers commonly markup the price of goods bought wholesale to turn a profit. For instance, if you buy a t-shirt at a wholesale price of $2 and sell it in your store for $10, your markup is $8, and the gross profit from that sale is $8.

When setting your retail prices, it's crucial to consider your wholesaler's pricing. If their prices are too high, it can impact your business's overall profitability. Additionally, your retail prices must align with your market to remain competitive and retain customer loyalty, considering that customers have easy access to alternatives online or in other stores.

Wholesalers often impose minimum order requirements (MOQs) before conducting business. These MOQs ensure wholesalers can sell their products in bulk, optimising their production and distribution processes. Retailers need to factor in MOQs when purchasing from wholesalers, as it can affect cash flow and inventory management.

Payment terms in wholesale purchasing refer to the agreement between the buyer and supplier regarding payment timing. Terms can vary from payment in advance to payment after delivery or within a specific time frame after the invoice date. Understanding and negotiating payment terms is crucial for maintaining cash flow and building positive supplier relationships.

To optimise your ordering process, focus on ordering your top-selling items from wholesalers, using your retail POS system to identify your best sellers and most profitable products. This strategy helps ensure you meet minimum order requirements while maximising your revenue and inventory management efficiency.

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