In any business, there are a lot of factors involved. The most important decision faced by a distributor is to decide whether he or she will specialize in retailing a line of products or in opening a wholesale facility where other retailers and direct customers can come and purchase if they so desire.
But before delving into the merits of both methods and which is more suitable for the buyer, one needs to have a clear idea of what exactly wholesale jewellery selling and retail selling are. Without this knowledge, one cannot say for sure which is the ideal method for their particular type of usage pattern. Let us clear this up before looking into what the benefits of each method of selling are.
First, retail. Most of the shops one sees are retail jewelry stores or jewelry outlets which sell their goods at a cost that is pretty high when compared to that of the wholesale jewelry shops. But the reason for this is that retail stores usually have the latest items in stock. The retailers in most cases only purchase the required quantity of jewelry items from the wholesalers of that particular type or brand of jewelry. Wholesale jewellers on the other hand store items in bulk for sale to retailers and others. Because of this bulk buying, the wholesalers usually buy the jewelry directly from the manufacturers of the jewelry thereby getting attractive low pricing from them. And because of these two reasons they are able to offer unmatched pricing. When compared to retail jewelry sellers, wholesalers are definitely much cheaper. `
The pricing given to regulate the rates of products in the retail industry is the MRP or maximum retail price. This is the price that is decided upon by the government in most of the countries worldwide for a particular product. Retailers are not supposed to go beyond this price range by law but they may reduce their profit margins to bring in sales by reducing the selling rate to be anything below the MRP.
When it comes to wholesale silver jewelry sellers, the first thing that one notices is that the prices are considerably lesser than the retail market. Another difference one sees is that, there is usually a bunch of jewelry makers whom the wholesaler sources a majority of the goods from. This is because that particular wholesaler might have a good working relationship with a few trusted brands and agree to stock up on their products. There are also wholesalers who deal with only one or two brands and stock up only on the products offered by these brands.
Thus, for the average silver jewelry buyer, they should be aware that if they are looking for particular brands, they might be able to find a wholesaler who sells the products they are looking for at a much cheaper rate than that of the retailer. However, the benefit of opting for the retail silver jewelry shops and online stores is that you might find more variety since products from a larger array of brands might be on display here. It is up to the buyer to take the decision who to buy from in the end. Both kinds of sellers have their own advantages and disadvantages.