Starting your own business is an exciting experience, but it’s also nerve-racking. There’s so much to think about including the products you sell, advertising, and selling them. Many entrepreneurs like to incorporate sweets into their business because they’re enduringly popular. In this post, we’re going to reveal some tips on buying wholesale sweets.
One of the best tools you can utilise for your business is buying wholesale. Not only can it save you a lot of money, but it can also enable you to build your business. But, what does wholesale mean?
What Does Buying Wholesale Mean?
When you purchase items for your business, you can get a reduced price if you buy in bulk. While most people purchase what they need for personal use, business owners buy from suppliers to stock their store. This is known as wholesale purchase.
Once you make the transaction, you own the products and can sell them at a higher price. The cost of your wholesale items and the retail price you sell them at is known as the margin. But here’s where it gets complicated. You have to make sure your product prices match the industry.
For example, if you bought wholesale tubs of Haribo and sold each tub for £20.00, you wouldn’t make a sale. Buying from wholesalers lets you make a profit, but you can’t overprice your products.
If you’re wondering how to work out your profit margins, try the Omnical Calculator.
The Advantages of Buying Wholesale Sweets
There are many advantages to buying wholesale sweets. Let’s take a look at how using a wholesaler can benefit your business and its customers.
When you buy in bulk, you get a discount on the retail price. Most wholesalers set a minimum purchase amount to ensure they also make a profit from the transaction. With the majority of suppliers, the more you buy from them, the higher the discounts are.
You can put these discounts towards diversifying your product line or spend it on marketing your business.
Another way to use your discount is to give it to your customers. When you offer consumers value for money, they’re more likely to remain loyal to your store, and you can enjoy owning a successful business.
Offer More For Less
Starting a business on a budget is a challenge that many entrepreneurs want to find ways around. Buying wholesale gives you an excellent opportunity to offer more products without busting your budget.
When you’re able to choose the products you’d like to sell, it’s easier to think about growing your business by adding new lines of sweets that cater to niche audiences.
For example, vegans always struggle to find gelatine free sweets, but by buying wholesale, you’re able to put your savings towards offering more options to your customers.
Sell Established Products
Perhaps the most distinctive advantage of wholesalers is the fact that you’re able to offer established products. Low budgets can mean you have to settle for sub-standard sweets that most people won’t have any interest in purchasing.
Wholesalers stock some of the biggest brands in the world, including Haribo and Millions sweets. By taking advantage of the low prices, you can compete with larger retailers while still offering low prices.
Lower Your Shipping Costs
Buying wholesale means you can take advantage of lower shipping costs. If you purchase products from regular suppliers, you’ll have to arrange standard deliveries and the prices can mount up.
Purchasing from wholesalers does incur delivery costs, but they can be a lot lower than traditional methods. You can then put the money back into the business.
Finding a Wholesaler
If you want to incorporate sweets into your business, then it’s crucial to find a reputable wholesaler. You can look around online, ask people in your network or even turn to your chamber of commerce for advice.
Here are some things you should consider when finding a wholesaler.
Figure Out Your Reorder Points
You might know what you want to buy, but do you know how much you need to purchase? By working out how much stock you need, you’ll be able to make sure you don’t have too little of each product.
It’s also useful to speak to the wholesalers about their delivery times. Knowing this information means you can keep on top of your stock and won’t have to make your customers wait for new products to arrive.
Fishbowl has a useful reorder calculator. You can access it here.
Don’t Be Afraid to Negotiate Prices
If your store is performing well, there’s nothing wrong with asking your wholesaler for a price reduction. Most suppliers are happy to offer their successful clients discounts because they want to retain their business.
Make sure you don’t just jump in and ask for a discount. You need to prove that your store is going to last before you benefit from reductions.
It might seem like a great idea to bulk buy and avoid higher costs, but there are two significant factors you have to take into consideration:
If you supply confectionery, foods or drinks, then you should ask wholesalers about the expiry date. The last thing anyone wants is to waste money on products that will go to waste. Think about your current customer base, and make realistic decisions when you place an order.
Storage space is essential if you run an online business and work from home. If you have a spare room, then use it to store your stock and try not to fill any other parts of your house.
When you think about how much space you have, you can make wise decisions about how much to order and minimise interruptions to your home. It’s also important to make sure your employees can see the products to perform stock counts.
Enjoy the Process
Ordering from a wholesaler gives you an incredible opportunity to discover the other products retailers purchase and use the information to grow your business. Now you can use our tips on buying wholesale sweets to save money, generate more customers and enjoy running a sweet company.