How You Can Save Money Buying Direct from Wholesalers

  • Added:
    Jul 07, 2014
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How You Can Save Money Buying Direct from Wholesalers Photo by Colin Armstrong

The modern wholesale club is a concept that dates back to the early 1980s retail marketing. Wholesalers discovered they could sell directly to the public, thereby eliminating the retailer from the equation, at prices slightly higher than what they would normally charge retailers. Consumers still saved money because they were not paying the cost of the retail business. For safeguarding the money as well as profit of a retailer, only wholesalers and manufacturers can help a lot.

Today, the direct-to-consumer model is alive and well in wholesale clothing. There is certainly no shortage of online sellers and club stores taking advantage of bulk distribution pricing in order to sell directly to the public. For the average consumer, the model offers a great way to save a lot of money.

Buying in Bulk

When distributors buy clothes wholesale, they are buying lots that consist of thousands of pieces. The larger the lot size, the better price they get from manufacturers. The concept is based on making money through volume rather than individual pricing. In other words, a manufacturer is willing to earn less profit per-piece if he can sell more pieces. This is the principle of buying and selling in bulk.

Distributors turn around and sell the wholesale clothes to retailers. The retailers will buy in smaller lots, but they will still attempt to purchase as many individual pieces as they can. This affords them better prices as well. Although their bulk purchasing power is not as great as the distributor, it is still enough to allow them to offer competitive prices off the rack.

Buying Direct from Wholesalers

The direct-to-consumer model of the wholesale club makes it possible for retail customers to purchase wholesale clothes at cheaper prices than they can get from a retailer. Here's how it works. Under the retail model, the wholesaler might sell a piece of clothing to the retailer for £10; the retailer adds a 40% mark-up for a final retail price of £14. When the wholesaler eliminates the retailer from the equation, he can sell the same item directly to the consumer for £12. He still makes more money per-piece while saving the consumer 20%.

And that's how you save money buying direct from wholesalers.

Wholesale clothing is the primary business of UK Fashion Wholesale. The company purchases directly from manufacturers at bulk prices, then sells the clothes wholesale to both retailers and individual consumers. They carry a full line of fashions and accessories for every budget.

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