Wholesale Approaches in the Beading World
Our directory classifies bead suppliers into four
categories. These categories are not necessarily mutually
exclusive; a supplier can use two or more of these pricing
approaches.
Traditional Wholesale Bead Suppliers: If
we were going to be "dictionary-accurate," a wholesale
bead supplier is one who sells only to other business people
purchasing beads for resale purposes. Such traditional
wholesalers will require verification of reseller status by
asking for a copy of the buyer's state resellers license or
sales tax permit. This license allows the buyer to make a
purchase without paying a sales tax.
Pricing Groups: With pricing groups,
sometimes referred to as "price levels," the supplier
maintains a different (and lower) price list for wholesale
customers than for retail customers. Wholesale customers
may further be grouped. One leading beading supply company
that offers a wholesale discount for jewelry designers and
steeper wholesale pricing for bead stores.
Quantity Versus Large Purchase Discounting:
Other bead suppliers claiming to be merchants will sell to
anyone, but offer special pricing to any person who buy a lot of
one style of bead or finding. This type of arrangement is
commonly referred to as a quantity discount, although the
phrase "volume discount" is also used often.
Quantity discounts are often justified on the basis of labor
costs. It does not take all that much more time for a bead
supply company's employee to pull from stock 10 of an item than
just 1 of that same item.
Large Order Discounter: Other suppliers
offer a discount based on the size of the customer's order.
For example, a customer might get 10 percent off for an order of
$100, 15 percent off for an order of $200, and so on. This
approach rewards customers who place significant orders.
It can also motivate customers to continue to shop.
Suppose you have $178 in your shopping cart, but the merchant
offers 25 percent off of orders over $200. You will
probably find a few more things to buy to get reach that
threshold.
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