Sams Club and Costcos?

Question

I always wondered how costcos and sams club got their Items so cheap (I'm wondering this because I hope to get some myself) I'm looking for money in order to start up a small electronic store in downtown detroit since there are none.

Answer 1

Buy huge quantities in bulk DIRECT from the sellers. No middlemen. Negotiate easy return policy. Sign contracts to buy a large amount each year or a set large lot at a specified price.

By the way...So far for the past 40 years almost anyone that tries this with electronics ends up broke as the cost of electronics comes down each year and the next years models are better so you end up having last years models that you can not sell at the price you bought them at.

Answer 2

Items can be purchased for below ordinary prices:

1)       When an item is not longer the current latest model...

2)        Buying in large quantity.

3)        Paying cash or on short time basis.

4)       Offering selective items at lower than customery mark-up and sprinkiling them among regular priced items.

5)        Selling at or near cost and attempt to pressure customers to buy related high profit warranties. (VERY COMMON)

6)        Selling off-label cheaply manufactured goods from China. (you might even find bodies of the small, young, exploited and enslaved labor stuck in some of the major appliances)  Could apply to most any third world manufacturing country....

Good luck....Have Fun....

Answer 3

it's because of volume.

costco is better.

Answer 4

i was at sams club the other day and I didnt find it that much cheaper, but maybe I looked at the wrong things

Answer 5

its called buying in bulk.

Answer 6

Sam's Club and Cosco operate on the principal of volume purchasing.  The purchase huge quantities of items to be disributed over their vast array of outlets.  That way, they keep the prices low.  

As a small business owner, you will not have that ability to order large quantities.  So be aware of that, and your prices will be higher and your profit margin will be lower.   Good luck in your new business.