[Jewelry making - Article 00444] - [Orchid] Wholesale vs. below wholesale

[Susan Lucas]

========[ Invite a Friend - http://www.ganoksin.com/invite.htm  ]========


    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." 



____________________________________________________________________
T h e   O r c h i d   L i s t
Open Electronic Forum for Jewelry Manufacturing Methods and Procedures
____________________________________________________________________
Orchid FAQ:
~ http://www.ganoksin.com/orchid/faq.htm
Orchid Archives:
~ http://www.ganoksin.com/orchid/archive
Orchid Galleries:
~ http://www.ganoksin.com/orchid/gallery.htm
Invite a Friend:
~ http://www.ganoksin.com/invite.htm
____________________________________________________________________
Tips From The Jeweler's Bench - Article Archive
~ http://www.ganoksin.com/borisat/tip_sear.htm
The Jeweler's Selected Bibliography List
~ http://www.ganoksin.com/jewelry-books
Buy Orchid Jewelry:
~ http://www.ganoksin.com/shop
____________________________________________________________________
-Unsubscribe:
-Email: orchid-request AT ganoksin.com Body=unsubscribe subject=blank
____________________________________________________________________