|
EVERYTHING
CAN BE HAD FOR A PRICE-BUT THERE IS A PRICE TO PAY FOR EVERYTHING!
Now that we have reviewed the "big three" let me put them into perspective.
There are products that can be obtained through a few of featured supply chains,
and then there are products that will never make it to the surplus, wholesale,
or drop-shipping market. For instance, to get Louis Vuitton handbags through a
surplus dealer is almost impossible. Surplus dealers that are promoting LV
Handbags are misleading you.
Same is true for people who are selling designer handbags on Ebay in mass
quantities. The likely scenario is that they are Chinese knockoffs. Over 80
percent of popular retail products here in the United States are copied in the
People's Republic Of China. Those products include Nike, Reebok, Puma, Adidas,
Louis Vuitton, Calloway (Big Bertha) golf clubs, and just about any product that
enjoys mass merchandising status.
There is no
plan by the Chinese government to stop "knockoff" activity because it is a
thriving industry that provides employment for the masses. Despite the pleas
from American companies to "cease & desist," there is a tepid response from
Chinese officials to do address the issue. When raids are conducted, they are
"ceremonial" public relations stunts to appear as if they are actually taking
action against the counterfeiters.
Another indicator of authenticity is price. You will not find any authentic
Louis Vuitton handbags for 30, or even 100 dollars. Most are 500.00 and up. To
illustrate this point even further, just think about the popular celebrities of
today who are clothes and handbag aficionados. Jennifer Lopez, Britney Spears,
Jennifer Aniston, Angelina Jolie, all sport around town with "Louies" that can
fetch up to 10,000 dollars for an exclusive style of handbag. Do you think you
will ever have access to these items in the wholesale, surplus, or drop-shipping
market?
Forget it! You might not even get these in some upscale boutiques, much less any
wholesale or surplus dealer! There are people so well connected that they buy up
"hot items" like LV Handbags before they even hit the stores. They know who
wants these items, and they will purchase whatever is available just so they can
have an exclusive for their celebrity clients. Don't get me wrong. It's not that
you can't get "designer duds" or handbags at wholesale prices. You will not get
high end clothes and accessories that are featured in the latest issue of Vogue,
Cosmo, as a "product for resale," in any wholesale environment, unless you spend
thousands for the right of access to such products.
Even if some of these items made their way beyond the connected channels of
purchasing, exclusive clothing and handbag items like Louis Vuitton will have
limited distribution in "hand picked' boutiques, and well connected purchasing
agents. In addition, there are people in the fashion industry, as well as other
branded industries that would rather have their merchandise burned, or buried
before it would reach the wholesale, surplus, or drop-shipping market! For more
information on designer clothing, and to learn about designer "fakes," please
refer to the following websites:
http://fashion.about.com/cs/tipsadvice/a/fakingit.htm
http://www.handbag.com/fashion/howtolookgood/spottingfakes/
http://www.fakediesel.com/
For a healthy does of honesty, and an eye opening perspective concerning the
realities of purchasing designer clothes for resale, the Clothing Broker will
definitely explode some popular myths about obtaining such items:
The Clothing Broker
http://theclothingbroker.com/
THERE IS GOLD UP IN THEM THERE HILLS!
Now lets address the Surplus & Salvage Industry. When people first encounter
some of the offers from Surplus dealers, or brokers, they tend to suffer from
what I call the "I just found Gold" syndrome. A feverish excitement permeates
their brain cells, and reduces them to a quivering pile of jelly, leaving their
reasoning skills inoperable! A few thousand dollars later, and after coming to
the conclusion that their "Golden Opportunity" turned out to be bars of lead,
elation, then turns to anger.
It is a cliche, and I hate using it, but it is more than appropriate when it
comes to surplus and salvage products. "If it sounds to good to be true, it
probably is!" Some Surplus dealers will hone in one at least one of seven deadly
sins--greed! As with wholesale, you will never get certain products for
"pennies" on the dollar. One type of surplus product category that has some
people loosing their minds is electronics.
The problem with electronics is that they have a low profit margin even when
they are brand new. Finding surplus dealers with good, undamaged, electronic
products can be a daunting task. Most electronics returns and overstock can be
in pretty rough shape. See Techliquidators.com:
http://techliquidators.com
What you are getting from most Surplus Dealers, or companies who specialize in
electronic selling is someone's customer returns, i.e., "junk!" Unless you are a
electronics technician, or recycler, then I would stay away from "salvage"
electronics. Even product that is not damaged, and still in the box or retail
blister pack, can have a pretty high surplus price. If you find that someone is
offering you a electronics item, be it a DVD Player, or Xbox, for eight dollars
a unit, then "buyer beware." More realistic purchases would be lower end items
like
vacuum cleaners and cordless phones.
Once again, in demand products like DVD Players, Laptops, Car Audio Equipment,
and Plasma TV's, when you do find them in the surplus aisle, will be closer to
the retail price because despite their secondary status. For a further
explanation of the surplus industry, and how you can avoid "purchasing
pitfalls," I would suggest that you read the: "The Ten Tenets Of The Surplus and
Salvage Business" found here:
The Ten Tenets
Of The Surplus & Salvage Business
http://www.productsforresale.com/articles/index.html
GETTING DROPPED BY DROP-SHIPPING!
My last critique, and word of caution is about drop-shipping. You might have
access to information about drop-shipping companies that would prove me wrong. I
will not argue with anyone who is dealing with a dropshipping company who is
serving them well. However, I will tell you that dropshipping is a risk. I
really can't recommend any type of guide, or information that would lead you to
a reliable source of drop-shipping
companies.
Unlike surplus and wholesale, where you physically own and control the product,
that option has been taken out of your hands. You are entrusting a company to
ship products directly to your customers. If you get involved with a company who
cannot deliver, or who is back ordered, you can find yourself with some very
irate customers. Sign up fees, shipping fees, and expenses for support materials
can really affect the bottom line.
Also, most drop-shipping companies like to send out product in volume. If you
are selling just a few items per week, or per month, it might not be worth if
for a drop-shipping company to deal with you. Large retail catalog companies use
drop-shipping or "fulfillment" houses, but these companies cater to large scale
operations.
The bottom line is this. When it comes to finding product supply for your
business it pays to do your homework. Visit the company facility when you can.
Never wire any money into a company account. Use a credit card, or Escrow
service to protect yourself should your supplier not deliver, or send you
defective merchandise.
Understand that you will not be able to get the latest and greatest technology
or fashions at surplus and below wholesale prices. If you follow all of these
rules, and you use common sense as your "crusade" you just might be able to find
your own "Holy Grail," of wholesale product supply!
|