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wholesale/warehouse vs online sales


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ceasar326 
Copper - Posts: 239
Copper spaceThis member has made a donation to the12volt.com. Click here for more info.spacespace
Joined: February 02, 2006
Location: Minnesota, United States
Posted: January 07, 2009 at 7:27 PM / IP Logged  

I wanna start by thanking everybody for the help you guys put in really helps all of us that try to make it in the 12volt industry.

Well I started my buisness last year October of 08 (great time to start a buisness knowing economi being so low right). Well anyways I get my stuff from a wholesale distributer "resellers only". I get stuff pretty cheap so i think untill a customer came in and said he could get same product cheaper. So my question is how do stores up front make it, if they can make profit by selling the product. What is the advantage of being a retail store when the only advantage is installing in my part. Am i getting bad warehouses or do i have to digg deeper. Thanks Cesar.

lspker 
Silver - Posts: 503
Silver spacespace
Joined: November 23, 2003
Location: Canada
Posted: January 07, 2009 at 10:17 PM / IP Logged  

If the customer can get it cheaper, why is he wasting your time? Did he allow for shipping, warrenty, is it new.............

Wholesale price depends on volume, the higher up the chain you are the better price you can get.  It's good to look around at different distrubutors.  Some import directly, others trade with other distributors, so product prices will vary.

Some "wholeseller" are greedy and wants more profit than the reseller can make.  For the last few years I've been telling some of my reps I can by cheaper online.............................now their slowly starting to realize something is happening because their volumes go down.  It hard when you can take them to the nearest Walmart and show them "their" product on the self for $30 less than they will sell it to you for, and still don't understand the customer will by it from the less expensive source.

Find product lines that allow some profit, they are out there, not many.

Good luck

big sexy lac 
Copper - Posts: 153
Copper spacespace
Joined: November 01, 2007
Location: Illinois, United States
Posted: January 22, 2009 at 10:22 PM / IP Logged  
Yea I agree some wholesellers are greedy, a place where I get my product from has a stand at a discount mart selling at the cost I get the product for or cheaper!!! So how are we suppoed to make money when our distributor is cutting our throat!!!!
well?
lspker 
Silver - Posts: 503
Silver spacespace
Joined: November 23, 2003
Location: Canada
Posted: January 23, 2009 at 10:12 PM / IP Logged  
Find another place to by from, or find a few more shops so you can buy in larger volume and bypass your local "friend".
chriswallace187 
Gold - Posts: 1,661
Gold spacespace
Joined: March 11, 2002
Location: Pennsylvania, United States
Posted: January 29, 2009 at 11:05 PM / IP Logged  
ceaser326,
I've actually bought stuff on eBay for just slightly more than my distributor had it for, when they were out of stock, so it's not as though your experience is unique. Only way to get it cheaper is buying from the manufacturer and it doesn't make sense buying that much inventory if you're not doing the volume.
I'd totally embrace the customer who can get stuff cheaper, as long as you explain the associated warranty issues. Labor's by far the biggest advantage you have in any case.
C Renner's Auto Electronix
My service is cheap, quick, and good - pick any two

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