Retail vs. Wholesale Buyers: Their Buying Practices
Do retail and wholesale buyers buy differently? Are their buying practices very divergent, or do they actually have much in common? That’s a good question, and one that some analysts are starting to pay attention to. The answer to these questions is yes and no. Simply stated, in some instances the two do buy share similar buying practices, but in some instances they operate on different models of buying. Clearly, the most fundamental difference between the two is that retail buyers are buying at retail prices, while wholesale buyers are seeking out the deep discounts that only wholesale buying can offer. However there are also many other much more meaningful distinctions between the two.
One of the primary distinctions between the buying practices of retail and wholesale buyers is that wholesale buyers are essentially looking for a selection of products that will appeal to their customer’s needs and interests. Retail buyers, on the other hand, are usually looking for one specific item or product line that they are looking for in order to fill an immediate need or desire. Of course, another fundamental difference is that wholesale buyers are buying to supply retailers, while retail shoppers are buying for themselves.
However, although there obviously exists a fundamental difference between the buying habits of retail buyers and wholesale buyers, they do have several things in common. For instance, both wholesale and retail buyers are both looking for a combination of things. Retail buyers are generally shopping for something that will complement something that they already own. Or retail shoppers may be looking for something that contrasts what they already own. Wholesale buyers too tend to buy in such complementary and contrast ways. For instance, a wholesale buyer may seek out products that complement what he or she already has in their inventory. Or, conversely, a wholesale buyer may also be searching for something that contrasts what they already have in their inventory so that they will have something new to offer.
Another thing that both retail buyers and wholesale buyers may have in common is that they often have trouble articulating exactly what they are looking for. Many shoppers describe a ‘feeling’ that they get when they come upon the perfect item—the thing they have been searching for. For instance, let us use the example of a wedding dress. The wedding dress is a notoriously difficult item to buy because it is heavy with meaning. It is thought as one of the most important material possessions that some women may choose to own in their lifetime. Most women who actively seek out the ‘perfect’ dress are notoriously difficult to please. They will tend to turn away dozens of perfectly lovely wedding gowns before they find the ‘perfect’ one—the one that they have been waiting for. But once a woman comes upon her ‘perfect’ wedding gown, her desires come into full view. But before, it has been difficult for her to articulate her desires—what she is looking for in the perfect wedding gown.
Wholesale buyers, believe it or not, often express a similar sense of ambiguity when they are searching for the ‘perfect’ product offering. They will search wide and far for the dream product, but will have a difficult time articulating exactly what it is they are looking for. Like in the wedding gown example, the perfect product is subjective, and its attributes are not completely known until the perfect product or product line has been located. In this way, it is clear that both wholesale and retail buyers can often approach the shopping process with a sense of ambiguity.
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