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Where do people find the "widgets" to sell in a business?
How do people start a business that requires inexpensive materials to sell. Lets say I wanted to start a smoke shop. Where would someone go to find the best wholesale prices for cigarettes, cigars, pipes, hookah, etc? To top it off, how do immigrants make profitable businesses when they barely speak the language. Sure I can find cheap cigarrettes and cigars to a point on the internet, But there must be something beyond the internet...how did people set up a mom and pop before the internet. The information is there, but where do you find it.1 year ago - 2 answers
They find local wholesale distributors. If it is sold in a store then they got it from somewhere local. The bigger stores create their own distribution centers. They buy direct in volume from the manufactures. Examples would be Walmart, Mcdonalds, Target, etc. Business that sell inexpensive items have to do a lot of volume to make money. Turn around time has to be very fast like cigs, food, candy, gas, etc. Hope that helps.1 year ago
they will all have "break points" in there prices where there unit price will change
(e.g you buy a 1000 they cost 1$ each - you buy 5000 they cost 75c each)
difference wholesalers might have diffferent break points
you look at your market and how many you are likely to sell.
find the wholesaler with the best price for that quantity
you look at the price items sell for in your market
Then you can work out if you can make a profit
(some people keep their expense to the minimum so they can sell at a lower price but make the same or higher profit as others with higher expenses.
Others buy huge quantities so their unit costs are lower.