There is no rocket science to know that buying direct from distributors will save you money.
Apart from just the money part, you have various reasons to buy directly from
us. This blog is intended to highlight some benefits to deal with distributors.
Benefit #1: Save Money
Overhead cost is a killer for any business. Retailers have huge overheads which
force them to raise their product costs.
[4 images – flash showroom, sales person, advertisements, systems, profit]
I will create an hypothetic example of a product [ a rug ] which cost $100 to
Manufacturers sell it for $150
Cost to Wholesalers: $150
Wholesaler sells it for: $170
Makes $20, as they have low overhead costs and volume is big.
- Logistically viable warehouse.
Cost to Retailers: $170
Retailer sells it for: $230
Makes $50, as overheads are high and volume is low.
Retailers overheads to name a few:
- Rental Space – [NZ mall’s rent is beyond imagination]
- Flash Display
- Sales People
- Marketing Campaigns / Systems
Buyers pay $230 [A Premium Price] for a product which is worth $100.
which can be minimized if bought directly from wholesalers. Some wholesalers
are keen to sell single pieces with FREE Delivery, like Cloud 9 Rugs.
Benefit #2: Repeat Product
In 10 years of business, we received so many requests for similar rugs.
Customer demands same rugs after years or may be seen at their friend’s house.
Retailers generally have 1 offs, while wholesalers buy in bulk, gives a better
chance to get the same rug even after years.
Benefit #3: Easy on Warranties
Cloud 9 Rugs is the only rug wholesaler who offers 5 years warranty with 14
days return policy. Retail stores generally would not be able to accept rugs once
passed the minimum term described in NZ law. We go above and beyond to get
our buyers confidence.
Generally, retailers offer 1 year or 2 years of warranty on their product as they
switch between suppliers quite often. Cloud 9 Rugs sources their rugs from
manufacturers directly and is in a position to offer 5 years on their entire
Benefit #4: We Buy Directly from Manufacturers:
It gives us a better understanding of the products we source, as they are able to
inform us of every detail and feature because they see them through every stage
of design and production, giving us a prime position to provide the best advice
to our customer wanting to make a purchase, as well as advice which is more
Meaning, we understand our product and are able to pick and choose the best
possible items available to us to provide for you
We are also able to stock a larger range of rugs nz than retailers, who tend to
pick just a few out of a larger range to sell themselves.
Buying from wholesalers like Cloud 9 Rugs is a good idea, rather than mere
haggling around in 5 different rug stores and pay a premium price.