First, you will need to decide what types of products you want to carry. It’s best to be flexible with brands, colors and sizes, as that will open up your opportunities when dealing with suppliers.

Wholesale product sources

*Manufacturer: Most times buying direct means a high minimum order. Usually manufacturers will have smaller retailers buy their product through one of their local distributors. You can find this information either on the manufacturer’s website or by contacting them directly.

*Distributor: Usually distributors tend to carry a large variety of products in a certain category (say pet products) from several manufacturers. Their prices are slightly higher than buying direct, but minimum quantities are usually low and you have the convenience of purchasing products from different manufacturers on one purchase order. Once you’ve narrowed your product category, you can find distributors by searching online or by getting a distributor list from a manufacturer.

*Factory: You can get a great deal on price if you agree to import a 20′ or 40′ container of product direct from the factory. Lead times are typically 30 days or more and you will need to set up shipping with the factory or the manufacturer. Doing thorough online searches for importing product in your category will lead you to many factory sources who sell direct.

*Liquidator: If you are flexible about your product needs, this is a fantastic way to get a real break on price. Many times you can purchase a bulk load of product for up to 75% off the original wholesale price. Consider your purchases carefully because once a product is sold out it’s usually gone for good. Many liquidators have online sites where you can browse products and order right online.

*Online Auction: By persistently checking various online bidding sites, you can end up with a bargain-priced wholesale lot. Be sure to ask the seller if the item is a closeout or if you will be able to purchase again in the future. Reading the seller’s feedback will give you information on how they have done business in the past.

*Trade Shows: Attending trade shows is a great way to find the newest products and get wholesale contacts from a variety of sources. Both manufacturers and distributors exhibit at trade shows, so you will have plenty of products to choose from and you will be able to meet your supplier face-to-face.

Choosing the right vendors

After you’ve decided on the sources for your products, it will be important to pick your particular vendors. When dealing with manufacturers, distributors and especially overseas factories you will want to do an online search on the company name, read any online feedback and ask for references. You want to make sure that they are reliable, available and offer high-quality products. Be sure to find out their policy on returning defective and overstocked merchandise.

A variety of choices for acquiring your products means competition on price, service and shipping-all good things for you! It may take some research time in the beginning, but once you have a good set of product sources buying will become automatic and less overwhelming.

Surplus, or closeout merchandise, is merchandise sold at a large discount because it did not sell at full retail for some reason.

Usually retail merchandise shows up at closeout dealers because it wouldn’t sell in a store. This could be for many reasons:

• Seasonal goods

• Store closing or bankruptcy

• Obsolete goods replaced by newer products

• Customer returns after the holidays

(not warranty or defect returns)

Another category of merchandise sold by many closeout and surplus dealers are "returns." This is a category of merchandise you should be very careful with. It may be nothing more than a sweater that was returned because it was the wrong color or size, but this category also includes defective merchandise and warranty returns.

In general, unless you are buying direct from a dealer or a wholesale auction where you can physically inspect the merchandise, you should avoid "return" category merchandise. You may also occasionally see the term "seconds." This is merchandise that did not pass the quality tests. On clothing it could be something where the color is a little off or a seam that didn’t match. On hard goods it could be a little dent or paint chip. These can sometimes be great bargains, but here again, you want to be really sure you know what you are getting.

One of the best places to find great deals on merchandise is through what are called "closeout" dealers. Closeout dealers go by many names: liquidators, Surplus dealers, Overstock Distributors and so on. Basically they are all the same. They work with large retail firms to take their excess inventory off of their hands. There are dozens of closeout dealers and liquidators listed on goWholesale.

Here is how the process works. A store such as Sears brings in the Fall collection of Ralph Lauren shirts and sweaters in mid-August. By mid-October anything that is left is put on the sale table at 30%-50% off. By late October, Sears needs the shelf space for the Christmas season arrivals. They call in a liquidation company (closeout dealer) who buys the goods at five or ten cents on the retail dollar. These companies turn around and sell you the goods anywhere from fifteen to twenty cents on the dollar. If you can get fifty cents on eBay or at a flea market, then you can easily double your money.

Closeout Merchandise: Advantages and Disadvantages

There are two primary advantages to buying closeout merchandise. First, closeout merchandise is inexpensive. Closeout merchandise has the advantage that you can generally obtain product for cheaper than if you went through a traditional wholesaler. Generally, the merchandise tends to be first quality, but the price is cut or marked way down for clearance.

The second advantage is that you can often find brand names that people are searching for. You can easily sell these items on eBay or at flea-markets. A lot of dollar stores also carry this type of merchandise.

There can be two basic drawbacks in buying closeout merchandise:

The first is the limited stock. The very nature of closeout merchandise means that once it is sold it is gone. I was able to buy Ralph Lauren Polo tennis shoes for several months from a local closeout dealer. I was getting a 200% markup on eBay and still giving my customers a great deal. My customers kept coming back for more, but pretty soon there weren’t any more and I had to shop for new types of merchandise.
The second problem can be the uncertain quality of closeout merchandise and/or how the merchandise is treated by the closeout dealer. As long as you deal with the larger respected companies, although they will not guarantee the quality, they will usually give you an honest description. Also, the better companies will package and treat the merchandise properly so it arrives in good order.

Most importantly, a buyer of closeout wares needs to be on guard about the possibility of buying merchandise that is irregular, damaged or somehow has low resale value. This can occur especially, but not necessarily, with goods that have been returned.

As we stated above, you can circumvent these problems by dealing only with reputable closeout dealers. How to find them will be discussed in the next section.

Geographical Location

When buying from online sources, look for sources that are near you. If you buy a pallet load of goods from an East Coast company for $400 and you live in L.A., it might cost another $400 to ship them. Also it may be worth your time to drive to inspect the merchandise; and thus geographical locale may be an important deciding factor when you are looking to buy closeout merchandise.

What To Buy

You want your first experience buying closeout merchandise to be positive. How do you know what to buy and from whom?

First is to do some research. If you see some merchandise you are thinking of buying, go to eBay and use the advanced search feature to see what it is selling for. When you type in the item, be sure to check the box that searches completed auctions only. Another great resource is the Research service at Andale. Once at the site, choose the "research" tab. Put your item in the search box, and you will generate a listing, which tells you what others have gotten for comparable merchandise in the recent past. The Andale research tool is FREE for your first month and costs $2.95 each month thereafter.

After you research what sells, you want to find out where to buy the merchandise. It is fairly easy to locate closeout and distribution companies. One of the largest and more reputable firms is Liquidation.com, and there are many others listed on goWholesale.

Once you find a company that has merchandise you want, stop and take a deep breath before bidding on it or placing an order. First read the description of the merchandise very carefully. Next read the terms of sale and shipping information. If there is anything that is unclear in the description, call or send them an email with your questions. If this will be a large quantity purchase, ask them to send you some photographs of the merchandise. The bottom line is that you are responsible for what you buy. Take the necessary steps to make sure you pay for what you get and get what you paid for.

Odd Sizes can be a Good Thing

When you are purchasing wholesale clothing you have to realize that the odd sizes can be a very good thing. First of all odd sizes can be purchased really cheap and you can sell them at a huge markup. The reason for these cheap prices on odd size clothing is that retailers will avoid them because they can be hard to sell. For this reason, clothing wholesalers will sometimes offer you some great deals.

The fact of the matter is that people are all built differently and they are all shapes and sizes. When someone is an odd size they have a hard time finding clothing that will fit. If you purchase odd sizes you will quickly see that these people are more than willing to pay top dollar for something that will fit. So never overlook odd sizes because you are afraid that they won’t sell.

Get Good Quality Clothing

If you are in the business of selling clothes then you do not want the reputation of selling cheap low quality items. Buy clothes that are only of the highest quality. Buy clothing that is the real thing. If it is a leather jacket you are selling, make sure it is genuine leather. A plastic looking leather coat looks bad and it is uncomfortable. People not only want to look good in their clothes, but they also want to feel comfortable with what they are wearing.

Cross Sell, Cross Sell, Cross Sell

You probably want to put a lot of concentration on women’s clothing, but it is still a good idea to throw in some men’s and children’s clothing as well. For the most part, the women who buy your wholesale clothing are also wives and mothers. In order to get the most from your business, you have to offer clothing that can be cross sold. Offer a few men’s shirts as well as boy’s and girl’s clothing in your product line and you will see your profits soar.

Often times people will go into the wholesale clothing business with no idea what direction they should take. Follow these suggestions and get the most you can out of your business.

Article Source: http://www.ArticleBiz.com

The types of items that can be found at live auctions

The goods being sold at auctions can make some retailers truly giddy with excitement when they realize they’ve stumbled upon the deal of a lifetime. Unsold products from a fallen business or antiques from an estate can prove to be profitable merchandise for a small retailer. Here are some of the more commonly found items for sale at auctions

Store fixtures and office equipment – When a store or restaurant goes out of business, it typically sells everything in the store – including shelving, light fixtures, seating, tables, mannequins, phones, fax machines, copiers, printers, etc. Many times, you can purchase these items for less than 75 percent off the retail price. For a new business, this can be one of the best ways to save costs in setting up a retail storefront.

Unsold merchandise – At an auction, one store’s failing can be another store’s huge gain. For retailers who carry a variety of products, auctions can be a great place to find items at a mere fraction of their original wholesale price. Cartons full of DVDs, video games and electronics are popular finds at auctions; however, depending on the auction, you can literally find anything and everything for sale.

Antiques – For antique, curio and furniture dealers, auctions can be one of the best ways to keep a unique supply of items in your store. Many of the finds at these auctions can be marked up as much as 250%, making them true goldmines for any antique dealer.

How to find live auctions in your area

Most retailers would be surprised to know just how many of these live auctions are happening in their area each and every week. You can narrow your auction search by reading the auction descriptions to find out exactly what type of merchandise is going to be sold at each live auction. Here are some of the best ways to learn about what auctions are happening in your area:

* Classified ads in your local newspapers
* Yellow pages (either in print or online) under “Auctions”
* Online auction directories
* Online search for “auction” and then your city and state

If you’ve purchased items from online auctions like eBay but never thought of attending a live auction, you just may want to give it a shot. For a retailer who deals with specialty or collectible merchandise, live auctions can prove to have even more deals than online auctions.

Using statistical information, recent surveys and targeted polling as resources, Halloween-News.com predicts the following Halloween trends for 2008:

Adult Costumes

This years movie to watch for will include Batman: the Dark Night, Indiana Jones and The Terminator. Jack and Sally from Nightmare Before Christmas are always present. You’ll still see a surge of pirate costumes since Capt. Jack Sparrow is still popular. Couples costumes will be big again this year, take a look at some of them at http://www.adulthalloweencostumes.com . The usual horror film bad guys such as the new Michael Meyers costume and mask, Jason from the Friday the 13th series and Freddy from Nightmare on Elm Street are all still popular. Classic movie villains such as Dracula, the Wolfman and the Mummy are always good choices. There is a strong resurgence towards the traditional, macabre, dark and sexy. Theater quality Vampire and Witch costumes, particularly sexy ones will be to die for this year. Elvira style costumes will also be in great demand. Gothic, ghostly apparitions as couples costumes will also make an appearance.

Decorating

People are decorating for Halloween like never before! The focus is on realism for adult parties, dark and spooky with lots of realism. With the availability of low cost consumer-based fog machines, more will be sold this Halloween due to the three day week-end with Halloween falling on a Friday this year. You’ll also see more elaborate yard haunts pop-up on this special night, complete with graveyards, skeletons, ghosts and special effects.

Halloween Parties

Halloween falls on a Friday this year and that means a week-end of partying! That gives us an extended two days to celebrate and throw week-end parties, also allowing for longer times running haunted houses and Halloween charity parties. Whether its a Pack of Pirates, Den of Vampires, Zombies, or Ghostly Apparitions, theme based parties are definitely in! And those that hold these parties will pull-out all the stops when it comes to decorating and the libation.

While all the booths received some attention, it was clear that there were a few that everyone clamored to get a glimpse of.  Street and urban wear were the belles (okay, booths) of the ball and the following list highlights some of the most highly sought after suppliers of the August 2008 show:

1.  Air Walk – This brand has been a staple in the surf/skate/snow scene for many years now.  It remains true to its original vision but keeps it’s designs fresh season after season.

2.  Raw Blue – This company, based out of Germany, boasts a line of hip hop inspired street wear.  The website is still under construction but you can get a feel for the clothing from their interactive Polaroids.

3.  Trinity Products – These shirts have everything from a flying snowboarder to a train wreck on them.  They also feature a group of shirts inspired by pop culture.

4.  Bullseye Brand – Hoodies, shirts, backpacks, hats, belts, shoes…the list goes on!  Bullseye’s distintive designs feature skulls, tigers and even dragons.

5.  Dyseone – Boasting "redefined" and "real" streetwear, Dyseone is your one stop shop representing the West Coast street wear.

6.  Dickiesgirl – Dickies brand has been an industry standard for quality work wear, but throughout the years it has become more than just functional clothing-it has become a style and fashion trend!  So much so that it has expanded it’s line into a whole other realm…the land of women’s wear!

7.  Ed Hardy – Like color?  You’ll like Ed Hardy.  Clothing for men, women and kids, as well as shoes and accessories this brand does not do anything conservatively!  Bright, bold color and cartoonish designs dominate and are taking the urban fashion world by storm!

8.  LA Ink – Kat Von D of the hit show "LA Ink" has started a killer tattoo shop and inspired her own fashion trends along the way.  Loyal fans and newbies alike want to dress like Kat and now they can.

9.  TAPOUT – Get ready for a wild ride as TapouT takes you into American counterculture with their "flash, attitude and strength" all the while supporting and promoting Mixed Martial Arts (they even sell MMA training gear).  Their apparel is some of the most sought-after in underground culture.

10.  Bang-on T-shirts – If you’re looking for pop culture t-shirts, this is the place to go.  Everything from Black Sabboth to Seasame Street this t-shirt company covers it.

You can attend then next MAGIC show in Las Vegas this coming February 17-19, 2009.

Important things to know about brand-name product sourcing

1. Fake “factory authorized” distributors : It is a must that you buy your products from distributors that have been authorized by the manufacturer to wholesale their products. Most brand-name manufacturers will not sell directly to you, so you will need to go through a distributor. It is easy to find a factory-authorized distributor for a particular brand-you just call or email the manufacturer and ask for a list of their wholesale distributors. If you search for distributors on the web there are literally thousands of companies who try to fool retailers into thinking they are factory authorized distributors, when in fact they will just take your order (which is significantly marked up in price) and place the order with the real factory authorized distributor.

2. Distributors selling fake brand name products : Companies seem to be popping up all over selling brand name goods that are actually knock-offs with inferior designs and quality. Anything from pocketbooks to clothing to watches are being sold online. You can eliminate being fooled into dealing with these counterfeit merchandisers by asking the real brand-name manufacturer who their factory-authorized distributors are. It’s that simple to avoid, but dozens of companies are still being scammed everyday.

3. Minimum orders : While the fake distributors may let you order in any sized quantity, the real factory-authorized distributors will usually have set minimum orders. However, most will let you mix the order with various products, all counting towards the minimum order quantity or dollar amount.

4. Payment terms : Once you are an established retailer you will probably have no problem getting net 30 terms from the distributor you are working with. However, for your first order you will most likely be required to pay upfront with a credit card or check.

Other ways to source brand-name products

If you are just looking for a recognizable brand, and not the latest, greatest model then buying discounted merchandise on eBay or from a closeout liquidator may be a great option. They may not be a steadily reliable source for the same product every time you buy, but most times you can get a real bargain. For instance, last season’s clothing style from a hip brand, last year’s model of a popular watch, etc. A lot of times when the new styles roll out, the old ones end up with liquidators or on eBay. You will usually be required to buy a certain sized lot, but many times it is much less than a distributor’s minimum order. Be sure to always shop around to make sure you are getting the best deal. Of course, thoroughly researching the company you will be buying from is always a must. With eBay sellers, be sure to read their feedback rating so you know if they are a reliable and trusted company.

Well hopefully you don’t have one single supplier! If one of your major suppliers does in fact notify you that they are closing their doors, there’s no need to panic. Simply contact your other supplier(s) and speak with them about the possibility of you moving more business their way. Determine if they can handle the new demand and talk about pricing options with them (as they may offer a discount for more business). Also remember to contact the supplier that is going out of business and ask if they have any products that they can still supply you. If they do, you might be able to get a "going out of business" price on the items.

In the event that you have paid for items that have yet to be shipped when the notification of the closing comes, DEFINITELY contact the supplier to figure out if you will be receiving the products you paid for. If not, ask about taking other products up to the equivalent value you’ve already paid. You may have to enter into court proceedings but this of course is highly undesirable as it will likely cost you more to hire a lawyer and pay court fees. Try to work something out directly with the supplier but if this does not work, make sure you consult a lawyer for further action.

The best way to avoid any of this is to pay attention to clues that might indicate the supplier is in trouble. Some of these include:

*Difficulty in reaching the supplier by phone or email.

*Repeated lag in shipping timeliness and lack of product.

*Employees begin to quit and/or ask if your company is hiring.

The best plan is to always have back up suppliers. This will save you a fortune in time and money in the event that one of your major suppliers does indeed go out of business.

Going into a retail business for yourself means taking risks with your money and your future. Not only do you have to worry about finding customers and keeping positive cash flow, you have to keep a steady supply of merchandise. This means finding a reliable supplier or distributor. But with just as many fraudulent or overpriced suppliers as there are legitimate distributors, committing to a supplier can be a scary thing.

Good business sense can help you avoid many of the scams out there, but there is no way to avoid them all. Fortunately, a scammer’s charade is never impervious. By using the following tips, you can avoid everything but a skim across the surface of a bad business experience.

Just because it looks like a duck and sounds like a duck… There are many companies out there who claim to be wholesale distributors, when in fact they are drop shippers who buy their products from wholesalers and mark them up before selling them to you. This not only costs you money at the purchase, it costs you future profit potential, since you will have to raise the price of the product yourself to make any kind of profit. One thing you can do is to take note of the variety of products a supplier sells. Distributors that sell many different items rather than specializing in certain products might just be drop shippers.

Some things in life are still free… If you’re just starting to work with a distributor, they may require a small set-up fee or a minimum purchase to get started. However, this is the exception, not the rule. If a distributor tries to charge a subscription fee, add-on fees or per-item fees, ask them to explain the charges and plan to move on to another company.

No name, no number, no service… A legitimate business isn’t afraid to attach its name and contact information to its web pages, so if the supplier you’re looking at doesn’t have a contact number and address, tread carefully. Anyone can invent an email address and start a website, and you should be able to gather enough information from a supplier’s website to do the proper background research on them. When you do order product, your supplier should ask for your tax ID number.

Let your fingers do the walking–um, typing… In today’s information age, legitimate companies are easy to find. Even start-up companies will have a trace of information somewhere online. The Better Business Bureau maintains information on thousands of companies, and their website is easy to use. Whois.net is a great place to research a business website. Just by typing in the domain name, WhoIs will tell you if the site is registered under a company or an individual. If you see a person’s name as the registrant, you might be dealing with a middleman.

Sales Pitch 101: Your supplier shouldn’t be trying to sell you products. If you visit a distributor’s website and it includes a sales pitch, you’re probably dealing with a middleman. That isn’t to say that distributors won’t have any kind of marketing on their site, but they don’t have a need for aggressive sales techniques. On the same note, your supplier shouldn’t be trying to sell you other services. At the very least, this indicates that he or she is a dabbler and might not be around long.

Hello, Smith residence… If you really want to find out the legitimacy of a potential supplier, call their business number. If someone answers the phone with a simple “hello,” hang up. Although many acceptable businesses are run from a home office, there should still be some kind of indication that it is a place of business. While not all companies can afford a receptionist, they will at least answer the phone with the name of their company.

If all else fails, contact the manufacturers of the products that you plan to sell and ask them who their authorized distributors are. They may suggest some strategies for selling and point you in the direction of their best suppliers.