Discounts and wholesale prices may be easy to find at closeouts, but it is not easy to know if you're being overcharged. You could very well be overcharged without correct knowledge of the wholesale price of a product.
Professional liquidators frequently and easily take advantage of this lack of knowledge by inflating prices, selling them for more than their true wholesale price. Some companies even act like street vendors, sizing you up from your appearance and then offering you a price. Still other, sneakier wholesale sellers will try to gauge your experience in purchasing wholesale before pricing their goods. It is a common occurrence to find two identical products, offered for two very different prices. However, you won't have to break the bank for similar closeout products. Someone with a little more buying experience could be buying the same products for a fraction of your buying price. More careful spenders can take advantage of these man made fluctuations and increase profits, where others may waste large sums of money.
But even liquidator and wholesaler prices aren't immune to the chain of supply, and may become inflated. The seller can take his cut at each stage of the product's shipping and sale. All this is passed either to you, if you plan to keep the product, or your customers if you are re-selling them In fact, a lot of wholesalers may have bought their products from other wholesalers before selling to you, and the chain may go on for a while. If you can, look for a supplier who isn't one of these middlemen for greater discounts and higher profits.
Also, be sure you research the wholesale prices of the goods you wish to buy, so you can purchase them at their true prices. In fact, it would be a good idea to research every aspect of your product thoroughly before you buy it. If the product is imported, you should know who imports it. You should know the costs that have cone into transporting your product, all the way from the source. It's quite possible you can find a supplier closer to the source, who can give you greater discounts and get closer to the true wholesale price.
Also, keep in mind that even though your wholesaler may tell you that you are getting the true price, this doesn't mean you actually are. It is his job to sell you the product, but it is your job to research and be sure you are getting what you pay for.
If you research your product properly, you will be able to haggle the price effectively down to the proper price. However, remember that you shouldn't have to haggle to get the proper price. New, inexperienced buyers can easily be duped into paying double for a product, but experienced buyers will not be taken so easily. If you can go to the source and get lower prices that way, it is in your best interest to do so. Your best bet would be going to a direct wholesaler or a closeout specialist instead of buying from a distributor.
Buying from genuine liquidators at low wholesale prices ensures that you will be able to sell your products to customers for lower prices as well. And of course, having lower prices will increase your sales and improve profit margins by making your business more competitive.
Author Bio: RhinoMart.com Wholesale, Wholesale Sources for Closeouts and Liquidations. RhinoMart.com is your leader for Wholesale Merchandise. We carry over 100,000 profit making wholesale items!