Buying Wholesale Bulk Lots - Buyers Guide To Buying In Bulk Lots
Buying in wholesale bulk lots can be a great way of making a nice profit on merchandise. Generally bulk lots are sold by wholesale distributors to create a price unit that is affordable to a small business, while keeping the minimum purchase total low.
These bulk lots are usually 100 pieces, but can be 48 pieces to 144 pieces or more. When sold in 144 pieces the lot may be referred to as a GROSS, the term used for purchases of 12 dozen pieces. Normally a gross would indicated 144 pieces of the same item,in assorted colors and sizes. However, it may referr to an assorted lot of various sttyles as well.
Bulk lots have become very popular since 1996 because it allowed auction sellers to purchase in smaller minimum quantities than wholesalers normally sold at. The wholesale bulk lot was first offered by the surplus, salvage, and overstock industry to move out products that had been selling slowly by the truck load or pallet. It was common to see 100 pc lots of clothing for $599.99.
It was during the late 90s it became obvious that the wholesale bulk lot was going to be abused. The industry had always used the anit-cherry picking rule as an excuse as to why their pallets and truck loads and the condition of the content of those loads were largely unknown to the surplus salvage dealer.. The dealer could claim the merchandise was being sold without having their staff look through the merchandise and taking out the 'good' stuff (cherries). It was assumed that if a truck load was broken down in a warehouse, that somebody had to do that, and that would mean that quality of goods, was known to the wholesale warehouse owner. So, buyers expected a better percentage of sellable goods in the smaller wholesale bulk lots., making them a better value than the pallets. It some cases it was.
Many wholesale distributors threw their trash away, rather than pass those damages and profit loss onto the small business owner. Others, filled their lots with trash, and the percentage of sellable goods was as low as 50% to 75%., and often resulted in the buyer only breaking even on the lot. While most buyers would have expected 90% to 100% sellable goods. Finding 100% sellable goods in a wholesale bulk lot is very rare in the apparel industry, but is more common in other industries. So, the buyer needs to ask the wholesale distributor what the percentage of sellable goods will range, and get it writting, complete with language that alllows for credits or refunds of non-sellable goods beyond the promised ratio.
The wholelsale bulk lot of today has expanded to include end of season items, new never sold, in 100% perfect condition. They are offered by manufacturers and wholesale distributors to move out slow moving products. Keep in mind that slow moving where the distributor is, may be fast moving in your location. Different areas have different demand levels of any given product.
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