My Peel Advertsing

If you are green to the world of business, or selling products, you may be wondering what the difference between purchasing wholesale and buying at discount is. These two terms are often and easily confused. There is a reason for this, one that I will explain shortly.

To understand the concept it is absolutely crucial to understand that all vendors find their products from somewhere, and in general, they will markup the cost of that item 100%. That means if they acquire a product for $10, they will be selling it in their store for $20.

When a typical store has a sale, they will discount between 20-40% of the selling price, meaning that the minimum they will sell the product for will be $12, so they are still making a profit from the price that the good was purchased at. The only exception to this rule is when there is a liquidation sale, or a store is trying to shift hard to sell stock, in order to get some return on their investment.

As you can see, even if you are purchasing at discount from a retail store, it is still possible to purchase goods at a cheaper price by using wholesaler sources.

This means that if you are someone who is gets goods to resell in places like eBay or Craigslist, at markets or in classified ads, if you are not buying your items from a wholesaler source, you are not getting the best deal to maximize your profit.

Additionally, when you purchase in bulk from a wholesale supplier, they are very likely to give you further discount based on quantity, giving you added margin for profit. It is easy to believe that the longer you and your wholesaler supplier are in business together, the more and more successful both of you will be.