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The Manufacturer sells a product to their
Wholesaler at $3.50. The Wholesaler sells it to
a Middleman for $5.00. The Middleman
tells YOU he IS the Wholesaler, and charges YOU $7.50.
YOU have to sell it for $10.00 to make a
profit, and you find you can’t compete with other Online Sellers who DO NOT
work through a Middleman.
Your Product Sourcing will be most
effective when you work directly with REAL Wholesale
Suppliers, NOT Middlemen! That REAL Wholesaler should have physical offices
with several people on staff. You can contact their local Chamber of
Commerce or the Better Business Bureau to Qualify ANY wholesaler you
consider using. You should also use the Search Engines to search on their
BUSINESS NAME, to see if other people have posted complaints about them
online.
Finding Real Wholesale Suppliers
When you're looking for information, the first
thing you do is go to the Search Engines, right? Well, that isn't always
the best thing to do, especially when you're looking for real
Wholesale Suppliers.
There are two main reasons why the Search
Engines are not a good place to look for real Wholesalers.
First, thousands of these unscrupulous
Middlemen are so desperate to get your attention that they have
flooded the Search Engines with their own misleading marketing. The
Search Engine keywords that people use to search for Wholesale Products are
the “sweet spot” for Middlemen shoot for. When you use those keywords on the
Search Engines, you’re going to get thousands of links that will take you
straight to the Middlemen. These people spend so much effort flooding the
search engines with their ads that a real wholesaler hardly stands a chance
of being noticed through all the smoke and mirrors.
Second, real wholesalers don’t really want
to be noticed on the Search Engines to begin with! Here’s a hard
reality: small, home-based businesses are not considered to be very
important a real Wholesaler, in terms of volume of business.
This is not personal. There is nothing wrong
with being a home-based Internet business. It’s simple economics, from the
Wholesaler’s point of view. They already have major accounts with huge
physical store retail chains. In terms of their overall business, they don’t
feel that Home-based businesses are able to bring in all that much money for
them. Because of that, most of them see advertising themselves in the Search
Engines as a waste of time and money.
So YES, they may be willing to work with you,
they just don’t go out of their way to advertise that fact.
That’s the second reason
that the Search Engines are generally not a good place to find genuine
Wholesale Suppliers.
All right, now that we have that happy little
bit of news out of the way, we can talk about what REAL Wholesale Suppliers
are, and how to find them yourself. The best place to get started is
to talk about why Wholesale Suppliers even exist in the first place!
Most people are under the impression that the
best place to Source Products is to get them directly from the manufacturer.
That almost never happens, and when it does, it is extremely rare!
You’ll almost always work with Wholesale Suppliers.
Manufacturers make things; they don’t
want to be bothered with selling and shipping them to retail businesses as
well. That’s why Wholesale Suppliers exist; they are a service industry
that works with product manufacturers in order to get products from the
factory to you, the Retailer, which is a great help to product
manufacturers.
If Wholesale Suppliers did not exist, every
product manufacturer would have to hire a Retail Sales Force, set up
Distribution Centers, buy trucks, and build an entire Distribution Network
for their products. That’s like every different product manufacturer having
to re-invent a very expensive wheel over and over again! So, genuine
Wholesale Suppliers fill a very real need for manufacturers; the Wholesalers
already have the sales force, the warehouses, the trucks, the distribution
network and more, and can carry many product lines from many different
manufacturers at the same time.
While there are some manufacturers out
there who will sell to you directly at wholesale, they are typically very
small companies who do so because they need the business. While this might
sound attractive at first, remember that small manufacturers also go out of
business much more frequently, or can’t make enough products fast enough to
fill orders. They can leave you hanging with backorders you can’t fill. Very
small manufacturers like this are also too small to be considered worth a
genuine Wholesale Suppliers’ time; the big Wholesale Suppliers don’t
want to bother carrying the lines of small manufacturers until their
products are proven in the market, or reach a certain level of sales. So if
you do come across a Manufacturer who is willing to sell to you directly,
please investigate the reason they’re willing to do so!
Straight to the Source
So, when it comes to finding and qualifying real
Wholesale Suppliers and avoiding the home-based Middlemen, who’s got the
info you need? Let’s talk about going straight to the Source.
As you’ve seen here, you could spin your wheels
forever trying to contact all the so-called “wholesalers” you see in the
Search Engines and trying to figure out if they’re Middlemen or not.
There is, however, one resource you can talk to
who already knows who the REAL Wholesale Suppliers are.
Who is it? It’s the manufacturer of the
products! After all, the manufacturer is the one who ‘Factory
Authorizes’ their Wholesale Suppliers to begin with!
Manufacturers have Sales departments. They WON'T
sell products to you or me, because we’re Retailers. Their job is to sell to
Wholesale Suppliers, who in turn sell them to you and me, the
Retailers.
Manufacturers Sales Reps know who their
legitimate wholesalers are, though. All you really have to do is call them
and ask; in most cases, they WILL tell you!
First, though, you have to find out WHO
manufactures the product you want to sell!
For example, if you want to sell RCA Stereo
equipment Online, you’d think that you have to find a phone number
for “RCA”, right?
Not true. RCA products are actually manufactured
by a company called Thompson Consumer Electronics. That’s who you’d
want to call. If you’re not sure who makes a product, look at the
product itself. In the case of an RCA stereo, if you turn the unit around,
you’ll find “Thompson Consumer Electronics” stamped right into the plastic
on the back of the unit.
Somewhere
on
any product’s packaging or on the product itself, you’ll almost always find
the name of the Manufacturer.
Let’s say you want to sell a product called
“Mom’s Ankle Wax” Online. You look at the back of a can of Mom’s
Ankle Wax, and find that it’s made by Mom’s Manufacturing, in Orlando,
Florida.
You call Mom’s Manufacturing directly, and ask
for the Sales Department. Remember, this Department won’t sell to Retailers,
but all you’re looking for at this point is information. You’re
trying to find out who the REAL wholesalers of this product are.
Here’s how I do it: I say,
“This is Chris Malta, of Worldwide Brands, in
Orlando, Florida. I’m planning to Retail your products, and I was hoping you
could give me a list of your Authorized Wholesale Suppliers that I can
contact”.
Almost every time, they tell me “Sure, no
problem!” They’ll give me the names and contact info for a number of their
Wholesalers. They don’t mind, because they’re helping their Wholesalers gain
new clients, which means they do more business as a manufacturer!
And there you have it. No worries about
Middlemen. I went right to the source, and got the correct information in
one phone call.
Now I know who the real wholesalers are. The
next thing I have to do is find out which of them will work with me. I’m a
small, home-based Ecommerce business, and most large wholesalers won’t be
very interested in such a small account. I may get one of Mom’s Ankle Wax
Wholesalers to work with me, and I may not.
So, I call the first wholesaler on the list. I
ask for the Sales Department, and repeat my little speech, only this time,
I’m talking to a Wholesaler I want to buy from directly. I’m going to
ask the Sales Rep to sell products to me, not just give me
information. I get Sales Rep Jane on the phone, and I say,
“Hi, Jane! This is Chris Malta, from Worldwide
Brands in Orlando, Florida. I’d like to Retail Mom’s Ankle Wax, and I need
to know how to set up an Account with you.”
Sales Rep Jane is going to ask me a few
questions about my business. She may ask things like how long I’ve been in
business, and how many store locations I have. This is when I have to be
honest with Jane about the fact that I am a Home-based Internet Business. I
don’t have physical stores, I’ve only been in business for a short time,
etc., etc.
If you want to have a REAL business, you have to
answer these questions honestly, and most of the time the honest
answers get you turned down for an account. Sad, but true. Sometimes,
though, the wholesaler will be okay with these things, and that’s the
wholesaler you’re looking for!
If this one won’t give me an account, I’m going
to call the next wholesaler on the list and start again.
So, that’s real Product
Sourcing. That's how you find and work directly with real Wholesale
Suppliers!
Here at Worldwide Brands, that is
exactly what our full-time Research Staff has been doing every day of the
week for seven years. We have contacted tens of thousands of
Wholesalers for you already. Those Suppliers who have
already agreed to work with Home-based Internet Businesses are in
OneSource, the World's only Complete Product Sourcing Solution!
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