[Jewelry making - Article 00437] - Re: [Orchid] setting wholesale minimums

[Bruce Holmgrain]

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>         If nothing else to save the cost of the tax which is 7% in my
>     area. 7% more I can put into my pocket when I sell my work
>     wholesale. 

    My point was that a sales tax number does not license someone to get
    the best price breaks. It seems to me that newcomers are made to
    believe that if they have an account set up with the state to ease
    the collection of legitimate sales and use taxes, that someone will
    give them a better deal on the goods that they buy. This is not
    necessarily true. 

>         Also, some wholesalers will not do business with you unless
>     you have a tax license. 

    Too bad for them. As I was trying to point out, I will deal with the
    dealer that will give me the best bang for the buck. I very rarely
    run into a "need" for tax number for my purchases. 

>         One example is my local lapidary and jewelry supplier. Their
>     retail prices are near what the mail order places charge and then
>     they give me an extra 10% off and don't charge me sales tax because
>     I have a tax license. 

    And if he wants to continue to do business with you, he'll keep
    offering the discount to you. This is hardly a "wholesale" purchase.
    I see 30, 40, 50 and even 60% discounts at the malls every day. This
    doesn't make them "wholesale" purchases. Anyone that wants to buy
    wholesale needs to do volume, volume, volume. As for the tax
    discount, in my state, I am required to pay the sales tax on the
    tools and equipment that I use as a use tax. Same tax. 

>         A sales tax license can get you into some wholesale shows. 

    There are plenty of ways around this in most cases and any show that
    lets a person in just because they have a sales tax account isn't a
    real wholesale show. Plumbers and carpenters have the same accounts
    and they get in as well. 

    I might add that when you support shows like this, you are
    supporting your competition. Good going. 

>         Also, having a tax license legitimizes you as a business. 

    Laborers are legitimate busimen. They are selling their labor for
    the best price that they can get. Such sales have nothing to do with
    whether or not they are legitimate. 

>        When you file with the IRS, especially if you are reporting a
>     loss, the IRS sometimes likes to check if you are running a
>     legitimate business and not just using a shell to write off
>     expenses... 

    Let 'em check. If you aren't dealing drugs or stolen goods, you
    aren't making frivolous claims or avoiding legitimate sales and use
    taxes, what do you care? 

Bruce
JACMBJ


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