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How to Buy Wholesale Appliance Parts

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How to Buy Wholesale Appliance Parts

Congratulations! If you are thinking of buying wholesale parts your business must be growing.

As businesses see their sales increase, it is important to consider new ways of saving money, and time.

Having the correct appliance parts on hand to service a client's needs is very important. Last minute orders and return visits cut into your profit and irritate customers.

As an appliance repair technician who also runs a business professional, you should know the impact of your daily money decisions. Ordering, inventory management, and on-site process all play an important role in the big picture.

Let's discuss some strategies to help your business avoid common wholesale mistakes.

What Is Wholesale Exactly?

Don't confuse wholesale purchasing with standard quantity discounts.

In most states, wholesale prices are available with proof of Federal Tax Id (EIN) and a Wholesale License. A Wholesale License allows you to save on sales tax because you plan on reselling those parts.

A wholesale discount should save you around 50%. Keep in mind you will have to meet minimum orders. We'll discuss this "catch" a little bit later.

Receiving a quantity discount does not need a Wholesale License. You are receiving a discount because of many large orders. Sales tax is still due on these purchases, and the discount will be much less than 50%.

Advantages to Buying Wholesale Appliance Parts

There are many advantages to buying wholesale appliance parts.

  • Increase Profit Margin

When you buy in bulk, you will end up spending less per piece. These savings will add to your profit margin if labor and markup percent stay the same.

  • Save Time

Having a large inventory will help to reduce the unnecessary ordering of parts. Due to shipping costs and increased price per piece, small orders are not recommended.

  • Save on Sales Tax

This cost can really add up. One-off parts will be subject to sales tax because they wouldn't meet the minimum orders.

  • Wholesale Credit account

Starting a wholesale credit account with a supplier can be a great way to save valuable cash. Qualifying is easy. Show proof that you are an appliance repair technician and spend at least $100 monthly.

Do Your Math

Buying wholesale appliance parts can have a great effect on your profit margin. But you have to be sure you have enough consistent sales coming in. Making a large order to meet minimums without sales can be dangerous for your business.

Unsold inventory traps your cash. And inventory purchases on credit are subject to interest fees.

A profit margin calculator can be helpful when making purchasing decisions. You will be able to adjust your wholesale cost, markup %, and gross margin % to make educated decisions.

Also, always be sure to read the fine print. Return policy terms vary greatly from company to company.

Calling All Appliance Technicians

So are you ready to increase your profit margins? Making wholesale purchases is a great way to save money, guarantee inventory, and decrease return visits.

Customers demand more and more these days and your business depends on meeting those expectations.

Contact us anytime and come check our wholesale appliance parts program.