Understanding how to buy wholesale:

The word "Wholesale" is definitely a misunderstood word.  For many people, buying or finding products at wholesale is a stressful and time consuming process.

This guide is designed to give you a little better understanding of wholesale terminology.  It will also help shed light on the differnt levels of wholesale pricing and how retail stores set their prices.  For example:

KEYSTONE:  Most retail stores have what is called a Keystone markup on thier products.  Quite simply, keystone means that they have a 100% markup on the item.  For exmaple.  If an item is selling for $10.00 retail, the store owners wholesale cost was $5.00.

BENCHMARK:  A Benchmark Markup represents a 200% markup on an item.  That means if you see an item selling for $15.00, the wholesale cost was $5.00.

The AVERAGE retail markup nationwide is a Keystone, 100% markup.  Luckily for todays retailers, the task of buying wholesale is getting much easier (and more competitive!).  With the introduction of wholesale search engines like Wholesalepalace.com, finding suppliers is becoming easier.  Many retailers are now finding markups of 300%, 500% or even 1000% on some items.  This type of markup has helped bring inventory costs down while bringing overall profits up.