Wholesale Perfumes – Buying Wholesale For Your Business

January 29, 2011 by  Filed under: Sales 

Are you thinking of starting your own business? Is it a business where you will be selling something? If it is, you should definitely think about buying products wholesale.

For example if you want to start a business selling perfumes, if you buy them at a department store and you then resell them in your own store, you can not mark up the price that much, and you will not be making much profit. So how can you make the most profit? Simply, by buying wholesale perfumes.

Let us begin with some important key words

Wholesale

Wholesale is defined by Dictionary.com as the sale of goods in quantity, as to retailers or jobbers, for resale, as opposed to selling to the public. In short, this means that wholesalers sell only to businesses, and not to the general public. They sell bulk amounts to the stores to then sell to the public.

Retail

Retail is defined as the sale of goods to ultimate consumers, usually in small quantities (dictionary.com). This is the selling of the product in stores.

Markup

Markup is defined as the amount added by a seller to the cost of a commodity to cover expenses and profit in fixing the selling price (dictionary.com). What this means is if the product was sold wholesale for $30 per bottle, and the store now sells those wholesale perfumes to the public at a retail price of $55, the markup in this case is $25.

Profit

Profit is the monetary surplus left to a producer or employer after deducting wages, rent, cost of raw materials, etc. (dictionary.com).

Basically, we have said that the retailer, or store owner, has made $25 per bottle of perfume sold. We now have to deduct all the expenses involved in making the sale. For example, the upkeep of the store, paying employee salaries etc. And of course the price paid for the product.

When you sell any product, you obviously want to be able to have the greatest markup possible thereby giving you the most profit.

Now, how can will you be able to have the greatest markup? Well that is simple. You have to buy the product for as little as possible. Which is why it is so important to buy wholesale. Let us go back to our perfume example. Perfumes generally cost between $45 and $60 per bottle. Now if you have a perfume shop, you want to sell your products for something in that price range, say $55.

Now if you bought the perfumes at retail price-even for $45, you will not be making very much money. But if you bought wholesale perfume, and you got a great deal of $30 per bottle, you now have yourself a greater profit when reselling those bottles for $55.

So you see just how important it is to buy wholesale whenever you are in business. It is important in any business. Thia concept applies not only with wholesale perfume, but with any product that you wish to sell, and wish to make the most profit.

It always pays to buy wholesale. http://www.wholesalefashionsquare.com has a great selection of wholesale perfumes at incredible prices. Act now and buy wholesale perfume today.

Article Source:

http://EzineArticles.com/?expert=Chana_Royde

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