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This article will show you all the highlights of how you can start a wholesale distribution business selling refillable lighters to supermarkets and convenience stores.
Lighters are one of the easiest things to wholesale and distribute. Stores buy them like crazy!
I started selling lighters when I had my route in San Diego with about 600 stores. Other distributors told me about how much money they were making with lighters so I decided to give them a try. They were right. Since the first day we introduced them to the stores they were best sellers and they have remained best sellers for years.
The first thing you should know is that I'm not talking about disposable lighters or even name brand lighters like Colibri or Zippo. I'm talking about Novelty or Collector lighters. The kind you see in convenience stores and liquor stores. They are butane refillable lighters.
For example, the top selling lighters were lighters in the form of a gun, torch lighters and chopper motorcycle style lighters.
The lighters cost about $1.25 to $1.50 plus shipping, depending on the style of the lighter. Some of them are regular flame lighters, some of them have a torch, and some are double or even triple wind resistant torch lighters.
Lighters come in a small cardboard counter display. You get all of the same kind in every display. You get from 12 to 30 lighters in each display, depending on the size of each lighter.
When you distribute the lighters you sell them for at least $2 all the way up to $3 or even $3.50. It all depends where you are in the USA or in the world, the size of your town, the size of the stores, etc. You learn how to price them quickly from the first time you go into the stores.
So how much can you make? Well, if you leave an average of 2 displays per store containing an average of 25 lighters each, you'll sell 50 lighters at an average of $3.00 or $150 sale. If you paid $1.50 per lighter including shipping you made $1.50 per lighter or $75 profit in one store. If you sell to 10 stores that day you are selling $1,500 and pocketing $750.00 minus your gas and other expenses. That's not bad for a few hours of work. In my business all of my salespeople have to visit at least 20 stores per day, not 10 stores!
Let's go over the numbers of our example again: -Your cost per lighter including shipping= $1.50 -You sell the lighter to the stores = $3.00 -Each display has an average of how many lighters = 25 -If you sell just 2 displays to the store how many lighters did you sell = 50 lighters -How much was the sale? = $150 -How much was your profit? = $75 -If you sell to 10 stores in a day how much do you sell? = $1,500 -How much do you profit minus gas and other expenses? = $750
Again, your business will vary depending on how many stores you have, how often you visit them the price you sell them for, and many other variables.
Let me tell you what I like and don't like about the business. What I like is that you go through a lot of lighters really fast. They are small and easy to store and carry. They come in their own display so you don't need to buy racks or displays (although you can if you want or if the stores like them). I also like the fact that lighters are small and you don't need a truck or extra storage to sell them.
The thing I like least about the lighter business is that the margins are not as high as with other products. I think it's a fair trade because of the volume you can sell. The other thing with lighters is that people like to choose them. Instead of you selling whatever you have in the car people like to play with them before they buy them, they like to test them, to look at every one. It's a novelty, so they want to buy what they like, not necessarily what sells.
All and all I think it's one of the best businesses to be in.
Whole sale distribution companies have proliferated over the last few years. The main reason attributable is the expansion of the online marketing and internet. The internet opened up new opportunities for large scale marketing of a variety of consumer and other products without any worries of owning and maintaining a physical store or sales force.
The demand for the various fast moving products from a cross section of internet marketing community has triggered the birth of many whole sale distribution companies offering products at varying and competitive discounts to be resold to the online consumers.
Whole sale distribution companies though have mushroomed in the recent past the fact remains that few of them are genuine whole sale companies and the rest being simple middlemen. The chain of such companies operating today are benefited of varying discounts, and the ultimate internet entrepreneur is devoid of the product for the genuine whole sale price.
Whole sale companies that are genuine and established exhibits reservations for supplying to small volume internet operators that leads to the above mentioned situation. Further the inability of the back end supplier somewhere in chain to supply the article leaves you in the lurch with the only gain of a bunch of unsatisfied and angry customers.
The unhealthy middlemen chaining ultimately leaves very less margin for the tail ender. One should not be lured by the catchy advertisements one sees on the whole sale distribution and its merits. You are well advised to have a pragmatic approach and objective assessment in respect of such lucrative offers irrespective of the fact whether you are a prospective internet entrepreneur or a an enthusiastic consumer.
However, there are still a lot of wholesale companies on the internet where you can get great products at a great discount. But as with everyhting these days: you have to be careful and make sure you are not being scammed.