You sell designer sunglasses and accessories. Everything you spend to obtain inventory has to be passed along to your customers by way of retail pricing. You need to recover every penny, and then some. So the amount you pay for wholesale bulk sunglasses directly affects how much you charge at retail. That's it in a nutshell. But let's dig a little deeper here.
You Mark Sunglasses Up
As a retailer, you mark up all the inventory you buy wholesale. Even if your business is built around offering discount sunglasses to consumers uninterested in buying high-end products, you still need to make a profit. You still need to mark up your inventory to cover your costs.
Your markup adds to your retail price. But as a retailer, you can only go so far before your products are too expensive to attract customers. You only have so many options for maximizing profit. So one of the things you do is look for low wholesale prices that allow you maximum markup without setting retail prices too high.
Wholesale Prices Affect Margin
Margin is another thing retailers need to consider. It has been our experience that retailers new to the designer sunglasses industry don't necessarily think of margin early on. Whether or not they are getting an acceptable margin doesn't even begin to occur to them until well after they start their businesses.
If you are not clear as to what margin is, it is the percentage of total revenue that constitutes profit. We can illustrate this with some simple numbers. Let's say you sell a brand-new pair of designer sunglasses for $100. All the costs related to selling that pair add up to $75. Your $25 profit indicates a margin of 25%.
It is not enough to just make a profit selling designer sunglasses. Again, simple numbers illustrate the point. What if the same sunglasses used in the previous example sold for $75.50? You will have still made a profit. But at 50 cents per pair, you are going to have to sell a ton of sunglasses to make all the hassles of running your own business worthwhile.
Why Wholesale Bulk Sunglasses Pricing Matters
Wholesale pricing matters in terms of margin because it has a direct impact. Remember, you can only set your retail prices so high before you chase customers away. The less difference there is between wholesale and retail pricing, the lower your margin. This means that paying too much for wholesale bulk sunglasses can actually make doing business not worth your while.
We tend to advise new retailers to determine an acceptable margin and then work from there. Combining low wholesale prices with cost-containment strategies ultimately leads to reasonable retail prices and a healthy margin.
Don't Compromise on Quality
It is important to close this post by emphasizing the fact that you should not compromise quality in your search for low wholesale prices. You can get both here at Olympic Eyewear. But even if you do choose to work with other suppliers, the quality you offer must ultimately support your retail pricing.
Low wholesale prices are critical to your success as a retailer. Combining them with high quality and excellent customer service is your ticket to making money selling designer sunglasses.
