Thursday, February 13, 2014

The Deal with Wholesale Deals

Some shoppers may wonder why a number of people score huge discounts when it is not even the season of sales, Black Friday, or Cyber Monday. Actually, a not-so-hidden secret is employed by a lot of wise consumers who want to buy cheap for things without sacrificing the quality of the items they shop.  The trick for a lot of shoppers is to take advantage of wholesale deals. When a lot of something is bought at one time, sellers usually decrease the price per item, allowing the buyer to score a substantial discount.

Image source: SIC LA
The logic is simple – when someone sells a large number of one item, that person carries the risk that only half of the items he is selling will be sold. For example, if a store sells wholesale sunglasses like 500 glasses, then store runs the risk of not successfully selling all 500 units. What if only 200 of the 500 glasses get sold? Everything, including pens, food, clothes, and even electronics and glasses, have a period where they are at their best form. 

Going back to the example, what if the 300 unsold glasses remain unsold after a year? The lenses on these shades may not be that good anymore, as they may have been scratched or have lowered in quality. Their designs may fade. Unless these items are consigned, the seller cannot return these unsold items to the manufacturer anymore. What would the seller do with 300 old glasses with not so good quality anymore?


This risk can be avoided when someone buys in bulk or wholesale. If one person, buys 300 of the 500 glasses the seller has, then the seller will have reduced risk, since he would only have to exert effort in selling 200 glasses. As a reward, the seller would offer the buyer a discount on the 300 glasses the latter would buy, since his workload would now be lessened.  This is why wholesale deals are available. In an effort of sellers to attract buyers to buy more of the same item, they make the price lower per unit. The seller has disposed a majority of his inventory, the buyer gets the merchandise at a lower price, and that makes everybody happy!

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