How to Buy Wholesale for Retail
In order to make any money as a retail seller, you will need to purchase stock from legitimate wholesale providers at a price that will allow you to generate a worthwhile profit. Many stores advertise merchandise at wholesale prices, but this is primarily a marketing a gimmick, because not just anybody can shop with true, authorized wholesalers. In order to obtain real wholesale opportunities, you will first need to do a few very important things.
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Instructions
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Obtain a resale license. Depending on what state you live in, this may be called a seller's permit, resale number or resale certificate. Basically, it legally entitles you to operate as a retail business, buying from wholesalers and selling at a profit. It also notifies the government to send you quarterly taxes and collect sales tax from you. Contact your state tax department or Board of Equalization to apply for this certification.
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Acquire a DBA, also known as a fictitious business name. While not mandatory for buying wholesale, many factory-authorized wholesalers will request this information when you contact them to establish an account. Having a legally registered business name will make you appear reputable to wholesale providers and increase your chances of obtaining valuable accounts. Contact your local county clerk's office to begin the process of registering your DBA.
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Locate factory-authorized wholesalers for the type of merchandise you wish to sell. Contact the manufacturers of the items you want, and in most cases they will gladly provide you with the names of their wholesalers. After all, they seek to sell as much merchandise as possible, so your business benefits them.
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Contact the wholesalers. Whether you call or write to them, make sure to present yourself as professionally as possible, listing the name of your business, resale certificate number, the nature of your inquiry and the type of volume you hope to purchase. Most authorized wholesalers are very selective about the sellers with whom they do business, so make the best first impression you possibly can.
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Begin buying merchandise. Once you have some established accounts, you can begin ordering stock and selling for profit.
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