It’s also important to understand what makes a product discount. It could be because the company made more than it could sell in a limited time frame. Or it could be because the retailer was unable to move the product even with significant markdowns. Whatever the reason, it’s because something didn’t work.
Distributors
First and foremost, there are no distributors in designer wholesale. In the case of full priced retail stores, you either have to go directly through the company or through a sales representative who receives a commission from the company. There are no distributors in the United States.
If the product you are selling is from a small foreign company, there may be distributors in the US to handle what would be foreign sales. However, not even these companies are guaranteed to have a US distributor. There will often be, instead, a foreign sales office.
Thus, when you buy discount merchandise, you are going through a jobber, not a distributor. So what exactly does a jobber do? A jobber simply sells overstocked merchandise.
Consistent and Reliable Sources
Consistent and reliable sources do not exist in the discount wholesale market. The beauty of this business is that you buy what can when you can. If you are looking for a steady and predictable supply of goods, full price retail is much more appropriate than discount wholesale. Jobbers buy excess or returned product, products with irregularities or cancelled orders. They sweep up the inefficiencies of the major companies. If you want predictability and stability, you’re better off looking elsewhere.
Specialty Stores
While most people want to get their hands on the overstocked merchandise of the major designer stores, small specialty stores are much more feasible and worth the while. These smaller stores receive the same merchandise that you would find in a Saks or a Barney’s. However, their overstocked material will be much less picked over and there is possibility of forming a long-term business relationship. So look where others are not, and you may be surprised by what you find. |