When you want to create alternative sources of income, you need to find your products and supplies as inexpensively as possible so you can make a good profit from what you are selling. Finding the right vendors is the key to getting your products and supplies at true wholesale prices.
Most vendors have what is called a minimum. That means that the amount of your order from them must total a certain dollar amount. Depending on what you are purchasing, some minimums are as little as $50.00 while others are as high as $1200.00.
Say, for example, that you want to purchase teddy bears for your small business. You then find a vendor within the gift market industry. Since the vendor represents several different companies, he/she may have a company willing to do business with you that requires a smaller minimum.
If not, then you will need to find another vendor who represents other companies within the gift market industry. How do you find vendors?
Finding a Vendor
Although there are a bazillion wholesale vendors on the internet, it is rare that you will actually find a true wholesale vendor on the internet. Vendors only want to do business with small businesses that will make them money. As I said earlier, vendors usually represent several companies. When you place an order with a vendor, the vendor then gets paid a commission from the company you made your purchase from, based upon the amount of money you spent.
Many vendors do not want to do business with smaller businesses because it is not worth their time. If you spend time looking for a vendor within your industry, you will eventually find one who will want to work with you.
Before you can place an order through your vendor, you will need credit references. I’ll tell you what to do if you don’t have good credit in a minute, but for now, know that these companies want you to have good credit–period. They will often check your credit yearly even if you have been ordering from them for the last 10 years.
Your Local Merchandise Mart
After obtaining your business license and sales tax license, get on the internet and Google your local merchandise mart. Just type in, “your city merchandise mart.” For example, if you live in Colorado, Google “Denver merchandise mart.” If you live in Texas, then Google, “Dallas merchandise mart.” Merchandise Marts are usually in larger cities.
Merchandise Marts are huge buildings containing showrooms which vendors rent to display the products they sell for the companies they represent. As long as you have your business and sales tax license, you can enter Merchandise Marts.
Most of the vendors who rent the showrooms are only there one or two random days each week. The rest of the time they are out visiting their customers. It is a good idea to call your local Mart and find out which day of the week that most of the vendors are in their showrooms. You can then visit your local Mart and meet these vendors.
You will want to dress professionally and have all your ducks in a row. Remember, these vendors are professional business people. They have no time to mess with wanna be small business owners.
Starting a Business When You Have Bad Credit
In a perfect world, you would find a vendor who would work with you, you would have good credit so you could make your purchases, and your alternative sources of income would allow you to quite the job you hate. Unfortunately this is not a perfect world.
If you have bad credit, your options will be limited. You will need to put on your thinking cap and turn on your creativity.
You will need to choose and research a specific niche. Once you find your niche, then find your local Mart on the internet and look at all the vendors with showrooms. If there are vendors there within your niche, then you are in luck-bad credit and all!
Using Samples for Alternative Sources of Income
The merchandise in each vendor’s showroom is called “Samples.” There are vendors who carry an inventory of their samples all the time. Vendors who want to sell specific samples place them in a corner of their showroom. You can usually purchase any of these specific samples for next to nothing.
Some vendors sell all their samples all the time. For example, at my local Mart there are two jewelry vendors who keep their showrooms open Monday through Friday. You can purchase whatever you want with no minimum. Of course, if you make larger purchases you will receive larger discounts. However, even without receiving discounts, everything is at true wholesale prices.
Usually twice each year, the all the vendors in the Marts have Sample sales. Their samples are set in a corner of their showroom and you can purchase whatever you want. This is a great time to visit your local Mart. These vendors put ridiculously low prices on their samples.
You can purchase these samples, resell them, and make a nifty profit. Samples are great for alternative sources of income. Just remember, what you purchase, you will need to sell. Make sure you have a way to move your products!
