If you have heard of wholesale pallets but are not sure what they are then read on…
What Are Wholesale Pallets?
Wholesale pallets are pretty much what they say on the tin. A wholesale pallet is a pallet/collection of products that are wrapped together and sold off for one price, and usually a very cheap one. Each wholesale pallet varies in stock but the reason they are usually so low in price is because they are normally job lots of clearance goods, liquidation items or items customers have returned after opening.
Pallets are usually graded to give a buyer an idea of what products to expect. Grade A is normally a pallet of products that aren’t that dissimilar to the state they were sold in – they will usually have very minimal damage and will be fully functioning. Grade B stock will be made up of products that have a slight problem that may need repairing but once repaired the stock can be sold on for a nice profit.
What Are the Benefits of Buying a Wholesale Pallet?
The main benefit of buying a wholesale pallet has to be the price you can grab some of the goods at. If you’re buying a wholesale pallet made up of consumer electronics then you could be grabbing clearance digital cameras at half their price and an older version of an MP3 that could make you some profit on resale. The items in wholesale pallets are usually way below their RRP so the main advantage of buying stock like this is the profit margins you can make.
The price you can secure stock at totally depends on the pallet you buy and the grade. Grade A pallets offer an advantage because they are normally products that you can resell immediately. But if you have the capability to fix minor issues Grade B stock could see you making a higher return on investment. Items that need repairing will obviously be sold off for a lot less than those that don’t but they do require some time and attention before you can resell them on to your customers.
Buying wholesale pallets also enables you to buy a large amount of stock in a very short space of time. Normally, to source the best deals, you could find yourself contacting wholesale suppliers for days to track down the stock you want and to negotiate it at the right price. But if you buy a pallet you’ll stock your inventory up pretty quickly.
Good relationships with wholesalers are important to future price negotiations and buying a pallet from a supplier can definitely help you to build rapport. If you buy regular stock in bulk from a supplier they’ll think of you as one of their best customers – which is important when it comes to securing stock in the future.
What Are the Disadvantages of Buying a Wholesale Pallet?
The main disadvantage of buying a wholesale pallet is that you can’t see the goods you are purchasing. That’s the whole point of pallets – they are a bit of a gamble. Yes you will know the type of product you are purchasing i.e. a wholesale pallet of TVs, but you won’t be able to look inside and inspect the condition or quality of the products you are buying. Prices usually justify the gamble but it’s a consideration when deciding whether to purchase a pallet or not.
If you’re buying a pallet of returned items or Grade B stock you also don’t know what kind of fault the items might have and how much time and money it might take to fix them. Buying stock at a cheap price is important, but if it ends up costing you a lot of time and money to repair a problem before reselling then you’ll start to see your profit margins tighten.
How to Spot a Deal
The best way to secure a good deal on a wholesale pallet is to buy from a trusted wholesale supplier like a supplier you know or a supplier a friend or contact has worked with. Buying from a trusted source will give you confidence during the buying process. Even though you can’t see the condition of some of the items you can ask questions about the products, what kind of products they are, how old they are and why they are available. Asking these questions and doing a bit of research will give you a better idea as to whether it’s the right pallet for you.
There are certainly deals to be had on pallets if you are willing to buy in bulk and take a chance on stock. We have seen pallets of HD LCD televisions being sold for 50% less than their RRP and we have seen a furniture pallet being sold for £464 with a potential profit of £1, 436 per pallet. Big numbers.
When buying and reselling goods it can be tough to make a good profit margin but buying wholesale pallets is definitely one way to see a big return on investment.