If you intend on purchasing a number of casters for your business purposes all at the same time, then it makes much more sense to purchase wholesale rather than retail. The main difference between wholesale and retail is the amount of product that you buy at one time. When purchasing products at wholesale, you typically ‘buy in bulk’, which means the cost of each individual unit is lower.
This means that there is a higher cost initially, but you incur significant savings in the long run. It’s far better to buy one thousand casters in one purchase, than it is to buy one thousand casters in quantities of one hundred at a time over the course of, say, two years.
Why Retailers Up Their Costs
Retailers increase the cost of their products because they have to maintain a clean environment for the buying public, and they have to employ more people – people to make sales, people to constantly man the check outs and customer support staff. Wholesalers have different ways of making sales and employ people in different roles, but generally their overheads are lower, resulting in lower prices, especially when you are buying in bulk.
What is the Significance of Buying Wholesale Casters?
When you purchase wholesale, you also receive premier access to a different number of products. Wholesalers tend to specialize in one particular niche – just like the team here at Douglas Equipment focus on casters and associated items of material handling equipment. The business of wholesale revolves around the provision of products to retailers and other buyers. Such product purchasers cannot buy directly from the manufacturer as suppliers typically have very strict minimum order requirements. Manufacturers also tend to charge high prices to retailers, or anyone who is looking to buy small quantities of the products they make.
Benefits of Buying Wholesale Casters
Wholesalers have the luxury of selling to a large number of retailers and other buyers, which means they can easily buy in significant bulk in order to make a profit. Their lower prices also make them attractive to retailers who can increase their profits by assigning a retail price that is much higher than the wholesale price.
Purchasing from a wholesaler also provides a way for smaller retail outlets and businesses to access products that they otherwise would not be able to obtain. This is of benefit to suppliers as it opens up new market opportunities for them. It’s easy to persuade a wholesaler to try out a new product than a retailer, as its less risky for a wholesaler to take something new on board. When it comes to casters, this simply increases the range and styles of casters that you have the luxury of choosing from. You would not have the wide selection of new casters if you bought from a retailer, as retailers tend to stick to what sells well, rather than anything that is innovative.
Different Types of Wholesalers
Not all wholesalers are the same, though. When it comes to wholesale service levels, there are typically three main categories:
1. Full Service Wholesalers
These types of wholesalers mainly sell to retail outlets and businesses that are prepared to buy items in wholesale quantities. These wholesalers are looking to build strong relationships with regular buyers – the kind of purchasers who are in it for the long-term. Such wholesalers usually offer basic distribution and delivery options, and other services that retailers and businesses find useful, including business advice. Prices at such wholesalers tend to be more expensive, but you get more than just the product you are buying.
2. Limited Service Wholesalers
These types of wholesalers only offer limited services. They may offer shipping and credit facilitates, but very little else. Prices are cheaper than with full service wholesalers, but you may find the range of products they offer limited.
3. No Service Wholesalers
This is the most basic type of wholesaler. You visit them, you purchase your items (cash only, no credit), and you take them away. Delivery services are not offered, and the range of products offered is extremely limited.
Realities of Working With Wholesalers
Not everything is perfect when your buying wholesale, but the benefits far outweigh the drawbacks. The main downside is that you are often ‘forced’ to order in bulk, and if you are not going to use all the items you’ve purchased at once, then storage can be a problem. This is not usually an issue when you are buying casters, as these items are small and can be stored easily.
Advice for New Businesses
If you are a new business, you may struggle to purchase in bulk. This is because buying large quantities takes a lot of cash, and new businesses may simply not have that kind of resources to make such a large purchase. If you cannot buy in bulk, then you may not be able to make sufficient profit from your retail prices, or you may find you are forced to fix your retail prices at unattractive levels to make a profit at all.
Of course, if your company is buying casters then it’s probably for your own use, rather than to sell to the general public. Some wholesalers may offer payment plans or allow credit purchases to ease any cash flow worries you may have. You may also be able to strike special deals if you can convince your wholesaler that you’ll be making regular purchases on a frequent basis.
Contact Douglas Equipment For All Your Wholesale Caster Needs
Here at Douglas Equipment, we are one of the largest wholesale providers of quality caster wheels and material handling equipment in Florida. If you’re looking to make a wholesale purchase of casters for your business, then please contact us for a quote. We promise excellent delivery times, high quality products and very competitive prices. Call us at 800-451-0030 (or 305-888-3700 if you are based in the Miami Area). You may also use our online contact form today!
