Purchasing Supplies in Bulk Versus Wholesale

What is the difference in purchasing your craft supplies in bulk as opposed to purchasing them wholesale? There can be quite a price difference, with wholesale pricing saving you money. If you have the supply demand to justify purchasing wholesale, this is something that makes good business sense to consider.

But before you can purchase wholesale, there are several requirements you will need to meet, and often, each wholesale will have more requirements before selling their products to you at the lower prices.

First, all wholesalers will require a tax id number. This number shows that you have a registered business, and that instead of the wholesaler charging you the sales tax, you will be charging it to your customers based upon the end product's sale price. You must then remit this sales tax to your state or province, usually on a quarterly basis. You can get your own sales tax ID number through your state or province's department of finance / revenue.

Second, many wholesalers have requirements on minimum orders, and some require order of seasonal products six months in advance, something many artistic craftspeople find difficult.

By buying in bulk, you will often not have to meet any requirements, other than the total amount of each item. You usually do not have to worry about seasonal delays, but it also means there is the possibility you may not be able to get the product when you need it.

Buying in bulk is also easier for start ups who are just getting into a craft business, but have not yet applied for a tax id number.

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