Like the legendary search for the Holy Grail, the cup that Jesus drank from at the Last Supper, the same “holy crusade” goes on today by veteran and newly anointed business owners for the perfect wholesale, surplus, and drop-shipping resource. They believe that divine intervention will lead them to suppliers that can defeat the economic laws of “supply and demand.”
There are more than a few people who try to build an enterprise based on the weak premise that they will able to “score” in demand retail items for their new business, or auction, at either below wholesale prices, or “pennies on the wholesale dollar.”
Trying to ride the wave of popular retail products brings out the greed monster in all of us. Pursuing the “deal of the century” has lead some aspiring business owners to risk their start-up capital on fraudulent deals and offers.
In this article I want to discuss three of the more sought after sources of product supply, and the “Pros & Cons” of each. I also want to shed a little light on some of the misconceptions people might have about buying “products for resale.” The reality is that not every product will be available through wholesale, surplus, and drop-shipping venues. Wholesale Garlic
Wholesalers: Typically, one of the better places to purchase products for your new found venture. Most true wholesalers will require that you have a “Certificate Of Resale” before you can purchase from them. A Certificate Of Resale, or “Tax & Use Certificate,” is not hard to obtain, and costs anywhere from five to twenty dollars depending on the state you live in.
Some states do not require that you even have one. You can obtain the certificate from your State Department of Revenue. For more information about sales and use tax, the websites Salestaxinstitute.com and Businessnameusa.com can provide you with further information about resale certificates and business licenses.
Depending on your states procedure, once you fill out the paperwork you can get your “Certificate Of Resale” number the same day. You do not have to incorporate in order to obtain a certificate. You need to be a Sole Proprietor (at the very least) and have an address where you plan to conduct business. Once you have your number you will be able to open a business checking account at most local banks. Most do not require more than a few hundred dollars to get started. Wholesalers will require a minimum purchase price that can range anywhere from 100 to 1000 dollars.
A true wholesaler is usually one step away from the original source of the product. For instance, a manufacturer produces blue widgets and wants to get their product into the marketplace. They will then employ a sales representative to get the product into the market, or they will assign a wholesale distributor the exclusive rights to carry and sell their product line. Some companies are import wholesalers. While they do not necessarily manufacture a product, they will import products from manufacturers in the United States, and from countries like China. A great example of such an importer/wholesaler is the Bnfusa.com: