Something we get asked about is why don’t the wholesalers publish the wholesale prices so they [the retailers] can see them? The main reason is that wholesale prices are not intended to be public information. But there are a couple of other reasons. Keep reading…
Keep Your Wholesale Prices Secret
You don’t want consumers to know what your profit is and you don’t want your competition to know either. It’s none of their business. You don’t publish your wholesale prices on your website for anyone to see, and neither do genuine wholesale suppliers. They are protecting your profit margin too!
A wholesale supplier must know that you are a legal retailer before they will provide wholesale prices to you through a dealer setup process or if there are only one or two products you are interested in, reach out for a quote. But you must also provide your business information as well so they know they are dealing with a retailer.
If your customer can easily find out what your profit margins are, they are going try to and squeeze unreasonable discounts from you!
Wholesale Prices are Changeable
Wholesale prices are just as changeable as your retail prices are and can be altered at the drop of a hat. They are also negotiable, and another reason why they are inconsistent in between retailers. Walmart will pay a different wholesale price for a product than you will.
It’s because they can purchase in astounding volume to fill up their almost 12,000 large stocking stores. The more you buy, the cheaper each item gets. That’s why you cannot compete with Walmart or any other large stocking retailer. You do not have the same buying power. Just because their retail price is the same, their profit is much higher than yours and so they can afford to take some hits in other areas. You cannot.
Wholesale Suppliers are in Competition Too
There are manufacturers that work with a number of distributors and wholesalers. They try and keep territories separate but with the world of online selling & dropshipping borders are more easily crossed. So a retailer in Florida can work with a wholesaler in California very easily and effectively.
Wholesale suppliers again, they have to keep those prices secret so their competition doesn’t find out. And like I mentioned earlier, secret so they can be more flexible depending on who they are talking to.
So if you want to see wholesale prices from real wholesale suppliers, have your tax ID ready for the supplier you want to work with! They will be MORE than happy to provide that with the proof you are a legit retailer!