January 9th, 2008
People often misunderstand the meaning of the word “wholesale” when they are eager to start a home business.
So, let’s find out what’s that magic word that means buying products at a cheaper price, selling them thus getting money.
Many people think that if they find a wholesale supplier, they will buy the products at unbelievably low prices and will be the only ones that can do it. Thus they think they can earn millions within weeks and then simply retire and live a happy life. No way. What they actually find out shortly after starting a home business is that anyone has to compete with huge companies. They find out one simple rule: there is no market without competition.
People find out that huge companies sell products at prices that are even lower than the prices provided by their wholesale supplier. What they do? They never try to find out why, they simply go round saying the supplier is cheating on them etc. But in fact, the supplier is not unfair!
Here comes in the notion “wholesale level price”. There is a very good reason why huge companies can sell products at lower prices than home businesses. And this fact has to be faced sooner or later – a small business IS NOT ABLE to compete with a huge one.
As I’ve already mentioned, there are so-called price levels. For example, if you buy 1 product from your wholesale supplier for $1, do you think that a company that buys 1000 products will pay $1 per item. NO. That’s the thing. You are sold products at the first wholesale price level. And if a company buys much higher quantities of the same product it gets them much cheaper – it enters 2, 3, 4th etc price levels (depending on the quantity of the purchase). Do you now understand two things: wholesale suppliers do not cheat and there is competition between a small and a huge business?
So, is there any solution? Of course, there is! Sales is much more than just selling products at the lowest price imaginable. In fact, selling is a mixture of finding the right product (or a few products). It is even more than that. It is about giving your customer confidence in your service. But what is still important for you? The most important thing is to be confident in your wholesale supplier, because unless you are, you cannot provide your customers with a trustworthy service.
You can attract visitors by creating a good, cozy and fast web-page that will ensure that customers will spend more time on it and thus the possibility of a purchase increases.
You have to learn the competition. Do not try to find the lowest prices on the Internet. Instead, try to find out the prices of your competitors. And then again, do not try to win the competition by cutting them, just try to attract visitors in other ways. The best thing to do is create a reliable aimed web-page.
There are no wonders in business. If people try to prove that there are, they are either cheating on you or try to sell something. The thing that really matters is you treatment of the customers. If you understand that they are much more than just a source of money, then you will be successful. You will simply find out what they want.