Have you considered buying wholesale products from China? If you have, you are
among the millions of resellers attracted by the extremely low product costs that China can offer.
But are you making the best decision by ordering wholesale products from China?
Sure, the price seems to be right. You can order products for as low as
75% below the prices of American made products. With such low prices, the retail mark up is unbelievable.
Profit margins of those sizes would seem to guarantee instant success to any retailer.
Imagine purchasing a par of socks for as little as .10, and then reselling it for a dollar a pair.
You are turning every $1 that you use to buy the socks, into $10 when you resell the socks.
$1,000 used to buy socks from China, can turn into $10,000 when sold at the retail level.
You must be wondering why everyone doesn’t buy wholesale products from China if the profit potential is so high. After all, everyone goes into business to make allot of money.
Here are the following reasons why a retailer would still buy American made products, even with a lower profit margin, than Chinese produced products, with gigantic margins.
Wholesale Buying Reason #1
Quality attracts customers. Most American made products are of better quality, and therefore are more attractive to consumers. People want to enjoy what they buy, and will prefer to buy higher quality products over lesser ones.
The above is true when dealing with customers that are not under financial duress.
A struggling single mom, or an unemployed individual, unfortunately can be forced to sacrifice quality for price.
Wholesale Buying Reason #2
Quality premium. Based on the understanding that customers prefer quality products, they will also be willing to spend more money on better quality products. So even though an American made product might cost you more, you can also charge more for it.
Wholesale Buying Reason #3
Brand name recognition. Customers love brand names, and will buy products that are branded. This is especially true when dealing with customers between the ages of 15 to 35. Customers in this age range will spend more money on the brands they like.
Since most genuine branded products are not available from China, a retailer will want to focus on American based wholesalers that supply the branded merchandise. customized socks with logo