To someone not used to wholesale buying, the difference in rates for the same item available in retail stores is sometimes inexplicable. However, those who run wholesale businesses make a lot of profit by sourcing the products directly from manufacturers and producers who sell them at an even cheaper rate.

To be successful in this business, a little bit of analysis, some research and sufficient funds should set a person well on the way to becoming a wholesaler. The idea is to wholesale more of those products that bring in better margins and which are perennially popular. To get a fair idea of what these may be, and if a person is just starting out in the wholesale business, it is always a good idea to check out the neighbourhood stores to see which brands are moving fast and which products hardly move from the shelves. Casual or proper business discussions with store managers, delivery people, customers and others who frequent such stores can provide a wealth of information. If you can, get the names and addresses of manufacturers or distributors who supply these outlets, but don't be surprised if the stores people are cagey giving that kind of information.

In any case, the most cost effective suppliers for wholesale buying can be located through the internet or by referring to the yellow pages and phone directory or attending trade shows. Once your store is open for business, you will be in control of which supplier gets to do business with you and under what terms.