Whether you are new to the business or are in the process of identifying the right supplier, there are a lot of factors to keep in mind. The vaping industry is growing tremendously, and therefore, there isn't any end to the options available in the market. Also, for the customers, there are ample products to choose from, and there is a growing number of vape shops selling them. We have come past the time when the store owners recommend products to their customers. Now- a- days, the customers demand their products and even suggest which brands to stock up. It causes an increased competition amongst the various vape shop owners and hence ensuring good profits is critical to the survival of the business.
The primary objective of every business is to make profits. One easy way to make profits is by saving money. That includes making the right decisions about choosing which products to deal with, which dealer to choose, and how to ensure customer satisfaction. When you select the right source for your products, the business is almost taken care of. For the vape shop owners, there is a blessing in disguise when they buy products from wholesale dealers. There are a wide variety of benefits by buying wholesale, which is discussed in detail here.
You get quality products at lower prices
Higher prices do not always ensure quality products. Sometimes, the goods move through a long chain of trade. It means, at every subsequent sale, the distributors tend to add their profit share and sell the same goods at a much higher price. It makes the products much costlier when it reaches the end customers. To avoid this consequence, the vape shop owners can directly jump up the queue. It means buying from wholesale dealers. The same quality product would be available at a lower price, and customers get to enjoy low-cost quality products.
Since there is a lot of competition amongst the vape dealers, having able to sell products at lower prices and attract customers, will boost the sales of the vape shop owners. It helps them a long way in the success of their business.
Customers love lower prices and tend to come back for repeat purchases
When the vape shop owners buy wholesale, they will be able to make available the demands of the customers at lower prices and higher quality. It means the customers will come back for repeat purchases and also bring in more sales to the vape shop owners. When there is an identifiable customer base, who makes regular orders, it ensures steady growth of the business.
Also, when the vape shop owners buy directly from wholesale dealers, they can ensure that there is a regular stock of goods, to meet their customer orders. It is not an easy task to coordinate with a lot of retail distributors for restocking their supplies. Instead, buying from wholesale dealers serves as a one-point contact and ensures regular availability of stock to the vape shop owners.
Wide range of options to choose from means more business
The most significant advantage for a vape shop owner who buys wholesale is that he can satisfy customers with varied preferences. When a vape shop owner decides to buy from a wholesale dealer, the choice of products he gets is unlimited. A wholesale dealer has a stock of products with various designs, sizes, and features. Further, when there are new arrivals in the market, the wholesale dealers can provide real-time information to the vape shop owners. When a customer wants to try out a new product, the vape shop owners can suggest they buy a small-sized version. When the customer is happy with the product, he is going to come back for the regular-sized product and also indulge in repeat purchases. Also, when there are different models, even with slightly varying features, some customers might want to try out all the models. It means that the vape shop owners can make more sales when there is variety. Thus, earning higher profits by making available a wide range of products to choose from, is possible only through a wholesale dealer.
Happy customers are the key
Meeting customer demands, at any point in time, is essential to a business. Almost every possible design and model needs to be made available to achieve customer satisfaction; the regular customers would ask for. It is vital to make the existing customers feel noticed and assist them by providing the best customer service. For the new customers, it is essential to understand the market demands and make available the stock accordingly. Ensuring the availability of such stock is possible when dealing with wholesalers. It is a healthy practice to obtain feedback from the customers about the products and also about your quality of services. It can establish a good relationship and also help in the growth of your business. Retailer dealers would not be maintaining a wide range of products since their activities are limited in scope. Therefore, to ensure happy customers through excellent customer service, buying goods from wholesale dealers can be much helpful to a successful business.
Scope for higher profit margin
Buying from wholesale dealers means lower prices compared to the price at which other shop owners buy their goods. Implying that you can still sell the products up to the rate at which your competitors are selling it. You can increase your sale price to such an extent, yet earn higher profits on every product. It is because your cost of buying the goods is lower than the other shop owners who buy them from retail suppliers. Such higher profit margins can help in the success of your business.
Bulk purchases mean lower cost per unit
Understanding the finances behind a bulk purchase is essential. When a vape shop owner places an order with the wholesale dealer, it shall always be a bulk order. It is because wholesale dealers do not deal in small quantities. Therefore, when placing a bulk order, the vape shop owners might feel like investing large amounts. That is true, but the cost at which each product is available is much lower than a purchase from retail dealers. Also, you can avoid multiple small orders by placing one bulk order. It eliminates a lot of ordering costs and shipping charges. Therefore, cutting down avoidable costs is considered one of the factors to stay competitive. Giving your customers access to products at any time is essential, and bulk purchases ensure that. When you can get lower costs per product and also make sales easily, wholesale buying, undoubtedly, is the best option.
Avail more offers and discounts
It is for the smooth functioning of the business that it is essential to maintain a good, healthy relationship with your suppliers. Such suppliers can save your day when you are really in need of help. When there are crucial times in business, you will need some financial support from the suppliers. They can help you in saving money by offering a reduced price for your supplies. Wholesale dealers than small retailers can better provide such assistance. For the bulk purchases made and the continuous orders placed, the wholesalers have that cushion, where they are in a position to extend that extra support to you. It ensures that your regular business is not disturbed, and the customer is satisfied with their buy. Establishing a good rapport with the wholesale dealer is essential for availing these benefits when you need them.
Identify and avoid buying slow-moving products
The wholesaler dealers have a more organized way of functioning their businesses. They, generally, maintain catalogs of items that they trade-in. They will be in a better position to guide the vape shop owners on information about which are fast-moving and slow-moving products. This information is vital in deciding what stock to buy for the store. It also ensures that the vape store owners do not waste their money by investing in slow-moving or outdated products. The wholesale dealers will be able to provide this service; and not by the retail dealers.
Save on the non- essential expenses
Business is all about ensuring that you make a reasonable margin of profits. The same is possible by cutting down costs that are not essential in the functioning of the company. It is not possible to avoid necessary expenses like administration, office supplies, and inventory costs. But the additional fees paid towards middlemen commission, service charges, inventory ordering charges can be minimized or eliminated to the extent possible. One of the best ways to do this is by buying directly from wholesale dealers. Thereby avoiding all the expenses towards making the goods reach you from those wholesale dealers. It saves not only money but also time and effort in procuring goods.
Avoid losses due to delay in delivery
For a fast-growing business, it is essential to have a regular supply for stock. Where the vape store owners have placed orders, they expect timely delivery of goods to serve the customers as and when they want it. There is no such fear of delay in delivery when dealing with wholesale dealers. The fact being, they have a well- established network of logistics since they deal with large volumes of goods and a lot of suppliers and shop owners. The same ensures customer satisfaction. The retail dealers, on the other hand, might not be as proactive as the wholesale dealers. The reason being, retailer dealers, too are depending on the wholesalers for the stock. When you buy directly from the wholesale dealers, you save the intermediate timing difference. In effect, it helps a long way in satisfying more customer orders and avoiding losses to the business.
Stay away from cheap and non- verified products:
Customers never encourage non- verified products. They do not get the right value for their money spent. The same discourages them from staying away from non-branded products. If the vape store sells such cheap and non- branded products, it would not be possible for the customer to develop that trust in such shop owners. The same could damage customer relationships. If you end up investing in cheap, non- branded products, it is not going to sell off and leave you in a loss situation. To avoid this risk of exposure of inferior products, it is always better to buy from wholesale dealers. They provide authenticated goods, which mostly includes a company guarantee.
To conclude, let us understand what creates a need to know where we stand in the cycle of a trade. The shop owners are higher up on the supply chain as compared to the customers. The shop owners prefer a higher rate for a higher profit margin, while the customer prefers lower prices for maximum utilization of benefits from the product. Then the issue starts with identifying that perfect deal, where both the customers and shop owners could agree upon. Therefore, the critical point to be noted is, where you place yourself in the supply chain. The manufacturers supply their products to the wholesale dealers; then, it reaches the customers through the vape shop owners and the retail distributors. The customers would prefer to skip that one level, which saves them a lot of costs, that is, the distributors. From the vape shop owners' point of view, there are a lot of benefits from directly dealing with the wholesale dealers, as listed above. Weighing all the benefits together, when the vape shop owners buy from wholesale dealers, they make the supply chain simple and also save a lot on their pockets.