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Is it possible to become a Wholesaler and call it a Home Business?
By Jag Kaurah
The short answer is yes. You see there is this thing called the “China Price”. This started with manufacturers in China selling their goods so much below the normal price that it sent shivers down the backs of manufacturers world wide. In the past, factories wanted to ship very large minimum quantities and have exclusive agents. With increasing competition and manufacturers from other countries having to offer the China Price the minimum order quantities demanded by factories have come down and exclusive agencies are getting less prevalent.

In theory, you can now order a product of a small enough quantity, store it in your house and sell it to retailers in your area. If the products are well chosen and you handle the business well, this can make serious money.

Let us take for instance a product that is below average in potential income to illustrate what is meant by the proposition here - instant electronic thermometers. You can buy these for about US$1.70 to US$1.80 delivered to you depending on where you live and the tax that has to be paid on them. They normally retail at between US$ 9.95 to US$14.95.

The sales can be to existing retailers, fund raising events and people who sell at weekend and night markets. These sales could be priced in the range of US$ 4.00 to US$ 5.00.

In addition, you could sell at markets yourself at perhaps US$ 8.00 per thermometer to make them very attractively priced.

It would be great to help the local school, club or charity organization by selling to them at prices so that they could resell at the normal retail price. This would extend your income greatly and you would be helping them raise money.

How many of these can you sell on average per week? That is like asking how long a piece of string is.

Sales per year depend on many factors, how big a market do you intend to tap, your commitment and skills and many other factors.

Take a reasonable example of a city of one million people as your market; the likely total potential market for instant electronic

thermometers would probably be in the order of 80,000 thermometers per year. Since you are local and you have concentration on one product and if you are committed, it would be reasonable to assume you could sell 20,000 thermometers per year.

How much could you make from that? That again depends on how your sales are distributed. Your margins on sales to current retailers, market sales people and to schools, clubs and charities could average $2.50 each and your own sales at the markets, to friends and neighbors could average $6.00 each.

If the overall average margin is $3.00, you would have an income of $60,000 per year.

How much money do you have to invest in all this? It should be well under $10,000.

How many hours would you have to work on this per day? That depends on you. For the example above, it should not take a well organized person more than 3 to 4 hours average per day.

You could then add a complementary product and double your income.

This is just a basic overall view and there are many pitfalls and things to watch out for and things you have to do. A series of articles are being written to help you step by step to achieve your goals. Watch out for them.

Due to changes in the business environment it is possible to become a wholesaler with a small capital base and yet make good money.
Jag Kaurah, is CEO of MarketClub, www.marketclub.biz , located in Melbourne, Australia. MarketClub is an online shopping site and offers a variety of Home Business opportunities operable in any part of the world. Jag can be contacted at jag@marketclub.biz