With most businesses look for every opportunity to save money, buying wholesale, including wholesale plaques, is a great opportunity to keep costs under control while still showing appreciation for those who deserve it. Just like with many products, award plaques can be cheaper when you buy them in bulk.
But buying wholesale is not always as simple as it is with Presenta Plaque. For many retailers, buying wholesale means going through the following steps.
Step 1: Obtain Required Licenses and Registration
Often, a general business license is required to buy wholesale plaques. If you plan to sell the merchandise you have bought wholesale, you will be required to get a license to collect sales tax. You should check with the city, county and state in which your business is located to find out what licenses are required. The wholesale vendor will generally request your sales tax license before they sell you merchandise at a wholesale price. They do this to make sure you’re not a retail customer trying to buy wholesale. Additionally, this ensures that the wholeseller won’t be required to pay sales tax. You will also need to obtain an Employer Identification Number from the Internal Revenue Service which will be used instead of your social security number to set up accounts.
Step 2: Compare Retail Prices
In accounting terms, the difference between the retail price and the wholesale price is called “cost of goods sold”. Once you determine the average retail price of the merchandise you want to sell, it will set a benchmark for the wholesale price you seek.
Step 3: Select Wholesellers
You can look for wholesale vendors at tradeshows, online, through industry ads or by networking with other businesses that sell merchandise similar to what you will be selling. You should choose vendors based on the level of quality you require and the terms offered by the vendors. Terms you may want to look for include include:
- Shipping costs
- minimum purchase quantity
- length of time you have to pay
Step 4: Arrange for Payment
When your first wholesale order arrives, you should be prepared to make least make a partial payment. The wholesale vendor may waive an upfront payment if your business’s credit is strong and you have excellent personal credit. You can also pay from loans, credit cards or your personal savings. With some wholesale companies, they may offer purchase-order financing, a type of loan that is short term but has higher fees than a bank loan.
There are many advantages to purchasing wholesale, especially wholesale plaques, so please talk to us about how you can benefit from Presenta Plaque’s wholesale pricing!