The wholesale business is differentiated from the retail in business in the following respect.
While retail stores are selling to end users, wholesalers are selling to resellers.
End users are less concerned with the price than with the benefits that the products will give them.
Retailers are concerned with earning a profit from sales to the end users of the products.
These distinctions between wholesalers, retailers, and end users, provides plenty of information on how to build a volume based wholesale business.
Since retailers, who are the customers of wholesalers, are interested in the profit margin that the products will give them, a wholesaler needs to focus on the profit margins of the retailer.
The higher the profit margins of the retailer, the more eager the retailer will be to reorder merchandise from the wholesaler.
The wholesaler that offers the highest possible profit margin to retailers will see a dramatic growth in the volume of their business.
To ensure that a wholesale business can sustain its sales volume it needs to periodically introduce additional items.
Retailers know that their customers are always looking for something new.
To really build a wholesale business it must have new items on a weekly basis.
And since retail customers want variety, the more variety a wholesale business has, the more it will be able to supply to retail accounts.
One important aspect to remember is that the goal of a wholesale business is not to profit from single item sales, but to grow its business by building the business of its retail accounts.
In other words, as flea market vendors, eBay sellers, and dollar stores grow their business, so will the business of the wholesaler expand.
Donny Lowy is the CEO of http://www.closeoutexplosion.com , an online wholesale and closeout business.