Starting Out Buying Wholesale Goods On A Limited Budget
It’s no secret that startup capital has become increasingly hard to obtain. If you’re looking to get your feet wet in a new business arena, unless you’re flush with cash, this is an important issue that needs to be addressed.
Most of the companies you will be looking to purchase from have what can seem like a substantial minimum purchase requirements for those starting out with limited funds. So, the issue at hand is: How can someone without significant funds begin selling wholesale merchandise? Well, the truth is there are some techniques for making purchases which don’t require the stated minimum purchase amounts.
Communicate Effectively, Politely and Honestly
Call the company you are wanting to purchase from and let them know that while you’re a startup company that is currently unable to commit to their minimum order, you do have plans to not only offer them your repeat business, which could be quite profitable for them in the long term and that you’ll also be making larger orders in the future.
It is very important to call and speak with someone, as emails are too easy to say “no” to, or simply ignore altogether. Even if the first answer you get is a rejection, try other companies as well – your business is valuable and there will be reputable companies who want it. The prospect of larger orders in the future and repeat business is hard for any supplier to turn down, so do not give up. Additionally, do not lower your standards of companies you will buy from, or take unnecessary risks with companies that do not seem reputable.
Be Prepared To Give A Little
Usually the more you buy, the cheaper the prices wholesale companies are able to offer. This goes to say, if you are looking to purchase goods at below a minimum order you may be asked to pay a little more. As long as the increase is not substantial and will still allow for you to ensure a healthy profit, this may allow companies to sell to you despite not making their minimum order requirement.
Consider A Dropshipping Agreement
If you’re starting out with a very low budget, you may want to consider dropshipping as an alternative. Dropshipping generally does not require any minimum order, as you are not actually purchasing merchandise in advance, but on an ‘as sold’ basis, where the supplier ships the merchandise directly to your customers. This can be a viable option if your goods will mainly be sold online or via catalogs.
Using the above 3 approaches should get you on the right track for selling wholesale goods on a limited budget.