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The Reality Of Buying Wholesale
By Kirk A Larson
In my line of business, I often receive emails and phone calls from people who are just starting their online retail businesses and searching for wholesalers who can give them competitive prices on the latest merchandise from the most popular brand names. While it’s understandable that one would want to sell the latest merchandise from the highest quality, most popular brand names, it’s often an unrealistic goal unless you have a substantial amount of capital to invest in your business.
This is not to say that every prospective entrepreneur with the dream of establishing an online retail business should just throw in the towel – quite the contrary. Prospective online retailers need to understand the reality of the consumer goods industry, the abilities that they have based on their capital investment, and then design their business plan accordingly. In my next article, I’ll discuss some excellent options for prospective entrepreneurs with limited capital.
Popular Brands Work Hard to Protect Their Reputation
But first, let’s look at how some of the most successful companies in the consumer goods market operate their distribution channels. Companies with highly popular brand names have worked hard to establish these brands. Understandably, in order to protect the reputation of their brand names, they often establish strict controls in their distribution channel to ensure that their name is not compromised by association with a sub-standard retailer.
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