Thursday 24 February 2011

Benefit wholesalers can get from seasonal discount offers

Seasonal discounts are generally offered on products which are out of season and the demand of those products is low. For instance take the example of jackets or long coats. People generally buy them during winter and not in summer. Manufacturers who want to clear their old stock to accommodate new inventory and latest products put a seasonal discount offer on their products. Wholesalers and traders buy these products and get benefit from them when their high season arrives. It is a general perception that mostly products offered on seasonal discounts will get outdated before the high season arrives but that is not always the case. Following are some benefits which wholesalers can get from the seasonal discount offers:

1. Access to products in low price
The very first benefit of seasonal discount offers is access to products in low price. Generally wholesalers spend a lot of time in looking for products which are of high quality and low price. But it is really difficult for them to find this rare combination. Due to seasonal discount offers they are able to do so. Traders can get their hands on the wholesale products of high quality in low price and are able to control their cost.

2. They can purchase more
The reason why wholesalers are looking for products that cost less is that they are looking to buy more. If they buy more they will be able to cater the demand of more and more clients. This will eventually result in increasing their network of clients. Some seasonal discount offers will let them save more than 50 percent on wholesale products and the distributors can utilize this amount to purchase more.

3. Ease of selling products further
Not only wholesale suppliers but also the retailers are looking for discounts. When the wholesalers buy products on seasonal discounts they are able to offer those products to the retailers on lower prices during the high season and the retailers are also able to offer low prices to their customers.

4. High profit margins
As discussed above, the wholesalers due are able to get products on low price, purchase more, and selling them easily during the high season. All these things collectively result in high profit margin for them. Some people think that seasonal discount offers are not beneficial but the high profit margins at the end are the greatest attraction in them. It is said that buying products on season discount offers is a bit risky but with high risks, come the probability of higher returns.

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