Retail vs. Wholesale
May 18, 2007 – 10:00 amThe other day, I came across a shop that was selling trinkets, hair accessories, apparel and costume jewelry. I wanted to have a look but the door was locked. Upon seeing me, one of the proprietors opened the door and told me that they are only doing wholesale business. I told them that I realise that since they have a notice at the door. I said I just want to take a look, can’t I?
Well, they told me that I can have a look but I can’t BUY.
So I was puzzled that they don’t want to do my business, even though I may be buying ONE miserable item, but they will still be profiting, won’t they? They already have all the items tagged at retail price.
If you look at the business model of Makro, when they first started in Malaysia, they only sold to people who would buy in bulk like grocers and other store holders. These people have a member card that they obtained upon showing their business registration. Even if you are buying for your own consumption, you have to buy a dozen units each time. Otherwise, sorry, they are too big for our small business.
And look where is Makro now?
To me, when I am holding stocks, hence incurring holding cost, I would like to dispose them in whatever manner and am thankful that there are people buying from me whether the sale is for one piece or a dozen.
How long will an exclusively wholesale business last in my town? It’s something that has to be seen.
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