A quick response to the issue of wholesale vs. "below wholesale"
pricing. My understanding of wholesale is that the items purchased
at a wholesale price are lower than retail because they are purchased
in a large enough quantity for the seller to still make a profit at a
somewhat lower price than they would expect if they had to deal with
multiple sales. Basically, they have lower labor and
accounting/packaging/shipping (if applicable) costs. However, to
really get what everyone wants price-wise to make a business out of
reselling (with no value added) this means very large quantities.
What I meant in my previous post by “below wholesale” was the price
that a factory would pay when they purchase rough from a mine, rather
than what a vendor would pay when they purchased the item from the
factory for resale to the public.
I think the bead business, if not the entire jewelry business, is
under the impression that “wholesale” is equal to “resale.” This is
not the case when it comes to prices. “Resale” simply saves you
taxes. “Wholesale” means you save money on the cost of the product by
virtue of buying in quantity.
So - if you think buying 3 items is the same price as buying 300
items (same item) because the vendor says it is “wholesale” pricing -
think again. It’s not.
So much for my rebuttal. (I’ll be quiet now:)
Sun Country Gems
P.S. The dealer I was speaking about buys their rough from Africa,
has it cut in China, and resells it themselves. They get the profit
out of each step in the process, and can thus sell it “below