How to Buy Wholesale as a Small Business Owner

Running a small retail business, you must find product sources so you can buy at wholesale and have plenty of room for a healthy markup. Not everyone can buy wholesale, so you must learn how to find suppliers who only "sell to the trade."

Instructions

1. Apply for a sales tax number from your state. You won't have to pay tax on wholesale items if you are going to resell them (the end user pays sales tax). In addition, as a retail business owner, you're responsible for collecting sales tax and turning it in to your state periodically.

2. Determine which brands you want to carry. Sometimes, you can just go straight to the source and buy from the manufacturer. Check the manufacturer's website to get information about this, or find their sales phone number and give them a call.

3. Locate a distributor for the products you want to carry. If you can't buy straight from the manufacturer, find out who distributes their products and see if you can buy wholesale from them.

4. Go to a trade show. Vendors in your industry will have sample products to demonstrate and if you're interested, you can place your order right then and there.

Tips & Warnings

• Most wholesale sellers will require you to provide your sales tax number or show your certificate before selling to you. They can get in trouble if they don't collect tax from you, but if you can prove that you don't have to pay it, you're in the clear.

• Buy in bulk. This is a good way to receive an even greater discount.

Resources

• Find out how to apply for a sales tax number from Skip McGrath.
• Search for a trade show in your industry using TSNN.com.