Off-Price Retailers – What Every Professional Wholesaler Need To Know
As wholesaler there comes a time when it’s difficult to predict the demand of products, or sometimes you might forecast the market right but due to change of customer behavior you’re not able to release all your products into the market due to less demand. There are a lot of factors that can affect product consumption from customers; this includes trends, seasons, and change of behavior.
When there is a shift in the market you’ll end up with overstock and you have to sell your products to off-price retailers, this will minimize your loss as a wholesaler. Off-price Retailers will buy your overstock products, returns, remainders, and canceled orders, they will buy products at high discounts so that it’s easier to sell to customers that are in tight economy.
Why Do Off Price Retailers Matter?
Off-price retailers continue to dominate the retail industry, they’re the fastest growing segment in the retail industry and that’s because people are always looking for discounted or cheap products, and that’s what Off price retailers specialize in providing to customers. Here are some of the reason why off-price retailers continue rise than other retail segments;
Consumers Are Conservative
Consumers always keep eye on their hard earned money and in tight economies they even tend to be more conservative when it comes to spending and the only options they’re always looking for are discounted or cheap options. Some consumers can go all the way to take a loan in order not to miss discounted products and that’s why off-price retailers are more popular than others.
They Move Inventory Fast
Off-price retailers always understand consumers are looking for trending products and at great deals, so they have to move their inventory fast, they have low margins and hence have to buy in large volume and move fast. Off-price retailers buy way more than normal retailers; they buy forty times a year compared to full price retailers that buy only 4 times a year. Though they sell on low margins, but they tend to sell high volumes, and that’s the ultimate secret for off-price retailers.
They Have Different Buying Strategy
Even though off-price retailers tend to buy in bulk and they make purchase multiple times a year, they are however very opportunistic in terms of purchase. Off-price retailers are connected to thousands of sources so that they’re able to choose the best deals for their consumers.
How To Find Off-Price Retailers
As a wholesaler even if you don’t currently have off-price retailers to supply products, you need to make sure you know the places to locate them, because at some point you’ll have product overstock and you have to get rid of them fast.
This is the first place to begin your search; there are lots of retailers in most trade shows and with good networking you can point them out. You should visit fashion trade shows, and soft goods shows in any city and you can connect with both off-price and full price retailers.
There are markets that specialize in selling discounted products and you’ll find a lot of retailers in these markets. Even full price retailers will be happy to buy discounted products from wholesalers since they can make more profit when they consider selling it at full price.
Full Price Markets
There are retailers that are not aware of Off-price products; you need to reach out to full price markets to find retails who’re interested in your products. As a wholesaler you should network with as many retailers as you can, both full price retailers and off-price retailers, so that whenever you have overstock products you can sell them fast to your network of retailers.
Another aspect you need to remember is that you have to provide high discount to Off-price retailers, you should expect to discount your products for up to 60% OFF the regular price. This way you can attract more retailers to do business with you.
Also always ensure to conduct research before ordering stock in bulk; though manufacturers are always offering more discount to wholesalers when they buy in bulk, you have to check consumer demands for the products. Sometimes even by offering the best deals to your retailers you might find it difficult to sell your products.