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:)
Susan
Sun Country Gems
www.suncountrygems.com
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
wholesale.”
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 wholesale."
Dictionary says: the selling of goods in relatively large
quantitiies and usually at lower prices than at retail;esp., such
selling to retailers for resale to comsumers.
How the profit is derived along the way, and how it is produced does
not determine whether it is wholesale. It is wholesale until it is
retail, usually understood as the point where it is sold to the
comsumer and is taxed. I would think that all along the way, in the
rough or manufactured,until it reached the comsumer, it is “below
retail”. The best example to me is the diamond dealer in your area
who says he will sells it “below wholesale”. What is that supposed to
mean? He buys in Antwerp, and can sell it “below wholesale”.
To me, either it is wholesale, or retail. To me "below wholesale"
has no meaning. Richard in Denver
Dictionary says: the selling of goods in relatively large
quantitiies and usually at lower prices than at retail;esp., such
To me, either it is wholesale, or retail. To me "below wholesale"
has no meaning. Richard in Denver
You’re abusing your dictionary and the English language. To be
“below wholesale” all that’s required is that the price be below the
TYPICAL wholesale price offered by other wholesalers. The product is
still being sold WHOLESALE if it’s sold to other dealers for resale
but it’s being sold RETAIL if sold to end customers however the PRICE
can, in either case, be correctly described as “below wholesale” if,
in fact, it’s reasonably demonstrable that the PRICE is below the
TYPICAL wholesale sale price offered by wholesalers. If you want to
crusade to “fix” something definitional why not get cracking on “gold
filled” and “nickel silver” and, don’t forget the retail jeweler’s
“70% off” sale.
James E. White
Inventor, Marketer, and Author of “Will It Sell?
How to Determine If Your Invention Is Profitably Marketable
(Before Wasting Money on a Patent)” www.willitsell.com
Also: www.booksforinventors.com and www.idearights.com
You're abusing your dictionary and the English language. To be
"below wholesale" all that's required is that the price be below
the TYPICAL wholesale price offered by other wholesalers.
Dear James, If I manufacture in the U.S. and sell silver for $.75 a
gram, and silver is sold by overseas competition for $.38 a gram,
whose price is typical? Can they say they buy it below wholesale
when buying from an overseas dealer? I have a retail store, and I am
a manufacturer. I disagree with your statement about typical
wholesale price. I have seen where one gem dealer sells something for
$120 a carat, another, same quality for $95, and another $60. I don’t
see the typical in that. It has to do with how close to the source
they are. I think it is radical to call what I wrote an abuse of the
language, and use of the dictionary. Evidently you have stong
feelings about this, and I have my experience from manufacturing,
buying wholesale and selling retail. You did not convince me with
your thoughts. Maybe for widgets, or tires you are right, but not in
the jewelry business. Buying for less than another dealer has it
priced, but not possibly the lowest price you could get it for if you
did more shopping, is where the lack of clarity is for me. Then it
would be “below, below wholesale”? And I would agree with you, if we
agreed that the correct statement made was " I bought it at a below
typical wholesale price".
Best Regards,
Richard in Denver
This thread might actually be a dead horse, by now—The gentleman
who wanted to use pretzel logic to justify what is essentially a
sales pitch might just actually believe that the world needs
telemarketers, too. No, we shouldn’t try to re-define the terms.
It is Business 101 - the manufacturer sells to the jobber, who sells
to the wholesaler, who sells to the retailer, who sells to the
consumer. What the price is, anywhere along the line, is irrelevant.
“Wholesale to the public” is simply, absolutely, completely, a sales pitch.