do retailers pay in advance all the goods they purchase from wholesalers?

Question

Sometimes you enter a large store with tons of electronic equipment.
It's hard to imagine that they purchased all these items in advance and that they will be able to sell everything. How does it work?

Answer 1

Yes, they pay for everything before they get it -- sort of. Most retailers buy on invoices from wholesalers (or direct from manufacturers), with the invoice terms being 30 days net. That means the retailer has 30 days to pay the invoice, so he has 30 days to sell the item before he has to pay for it. But if he still has it unsold after 30 days, he still pays. Some wholesalers will accept returns of unsold items (though a minority), and some will offer a discount off the wholelsale price (10-20%) if the item is unsold after 30 days, which is why you see retailers put things "on sale" if they've had them on their shelves for a while -- they can afford to do that and still make a profit because the wholesaler cuts them a deal.

Answer 2

No, not always. They get it on credit, and then get an invoice at the end of the month. Most retailers work this way. Some however pay in advance. Just depends on if it is a large chain or small mom and pop store.
Ha Ha

Answer 3

My husband works for a wholesale electronic company. Here is how it works. Most of the items that you see were purchased on credit, it depends on their credit level. Usually the terms are 30-60 net, meaning they have 30 to 60 days to pay for the items that they have in stock. The wholesaler has 30-60 days to pay the manufacture.

Answer 4

No, not always. They get it on credit, and then get an invoice at the end of the month. Most retailers work this way. Some however pay in advance. Just depends on if it is a large chain or small mom and pop store.

Answer 5

Most most likely there may be some thing blockading the monitor within the desk, as a rule chalk. If you are taking the slate off of the desk, you can be capable to repair it. Theres normally steel trim across the most sensible external of the desk that's hung on through screws. Unscrew and take that off all over the desk. Then you'll see a few bolts underneath that (used to keep the rails on) unscrew the ones so you'll dispose of all 6 rails, then with the support of no less than one million different individual when you consider that the slate is heavy, you'll dispose of it. Hope that is helping!

Answer 6

I used to work in retail and the answer is yes. We did a 2.2% markup on more expensive items and a 3% mark up on the cheaper items. You will be able to sell everyting sooner or later. You really have to know what people really want and the things that don't move usually get marked down to what it actually costs the retailer to buy it for.

Answer 7

Yeah Im sure of it thats why some times after places have had things for too long and it's just not selling they will mark it down They want to at least get some of their money back that they paid for.

Answer 8

In the restaurant business, they needed payment the day it was delivered. At least in my case, maybe bigger restaurants have special accounts. I guess the only difference is my stuff was perishable, and electronics are not.

Answer 9

They get 30 days to pay for what they have in stock.

They only have to pay in advance if they have bad credit.

Answer 10

Yes, they pay in advance, but there is insurance.