In the initial days of starting a retail outlet, the situation is often very tough. You need to do everything from scratch.
You need to look for products at the best price, get them to your store at the cheapest possible way and in the best condition and then you need to wait for the target market to buy them from you.
However, as a new retail outlet owner, your primary focus should be on how to purchase the product at the best price.
In addition, if you want to purchase the product at the best price, you will need to look for different sources to get the product. You cannot follow traditional and regular sources to buy the products. For example, think about a situation where there are 10 shops in a locality that sell the same products. If you look closely, you will find that they have one or two sources to get their products. Or, you may find that they have some common hubs to get their product. Now, if you buy from the same source, you will not be able to offer the product at a cheaper price unless you reduce the profit margin.
You may be thinking that, if one can buy that product in bulk, it will be easy for them to offer the product at a cheaper price than the competitors will. However, as a retail shop owner, it is often very tough to source products in bulk, as it would require huge investments. It is not just about the investment to buy the product, you also need to secure a good storage facility and it involves recurring investments.
So, what do you do?
You need to find alternative sources to buy those products. There is no other option but reducing the overall cost of the products. So, what options do you have?
Trade shows are great ways to find new companies offering the same products. You will often see that these new companies offer products at much cheaper prices or you may get great reductions if you buy in bulk. You can also negotiate with the dealers or companies to get a better price. Thus, you need to attend different trade shows in your product category. However, do not forget to find out other costs like carrying costs associated with your purchase decision. Apart from that, always put your emphasis on the product quality.
Apart from trade shows, you can easily locate a wholesale distributor in your niche in an online directory of wholesale distributors.
Different websites often run virtual trade shows. Just look for products in your niche and start the business.
You can also look for new suppliers in phone directories. Many manufacturers often advertise in different telephone directories to attract new business. Thus, you should collect the new phone directory every year.
Some products often have different geographical production regions. In addition, you will often find some micro companies there who offer the same product at less price. You can visit those places to find the best product at the most cost effective price.