After you have counted all the stores that could be buying from you, start looking for small businesses in your town, such as the dentist, the doctor, the lawyer, the accountant, the insurance agency, the real estate agency, and even other general wholesalers. All of these businesses would like to buy all their office supplies at wholesale prices; they are also part of your market. Now you can see why wholesaling can be very profitable; the market in one small town is quite large--and you don't have to limit yourself to one town.  

There are many misunderstandings about wholesaling, which I'd like to discuss in terms of myth versus reality.  

Myth: To be successful in wholesaling, you must have a large inventory, which means you must start with a large capital investment. 

Fact: It is not necessary to have a large inventory. In fact, it is better to have as little inventory as possible, so you are not tied down to a certain product line. The best way to keep inventory low is to find a supplier who will keep the inventory for you and allow you to take delivery only as you get orders. Some will even drop-ship the order directly to your customer, so that you never have to take delivery at all. One company in the example of office supplies is National Wholesale Company. They will hold the entire inventory for you, take orders in small quantities, and even drop-ship direct to your customer. 

Another way to avoid inventory is to function as a representative, who collects a commission on each product sold. In some cases, all you have to do is find a buyer and connect him with your supplier; then you collect a commission on all subsequent sales, even though you may not be involved in the order taking. Again, this is a service that is provided by National Wholesale Company--they will give your customer a special account number, and whenever that customer places an order with National Wholesale Company, your commission is automatically calculated and sent to you. 

Myth: Most stores are already getting the best possible prices and it is difficult to convince them to switch suppliers unless your prices are significantly lower than the lowest prices. 

Fact: Most stores don't have the time and personnel to hunt out the best prices. There's no way they can always find the best possible price--they are too busy running their store and attending to customers. All they really care about is the profit they make. 

You can get a sense of how varied prices are by looking at a few items in several different stores and comparing. You'll be amazed by the disparity. Some stores will charge as much as 50% more for the same item that is being sold just down the block. This fact alone, that many stores are paying much more than what you can offer to them for the same product represents a tremendous opportunity. If you can show them that your prices are better than what they're already paying, and that you will be there to handle their account if there are any problems, you have just made a sale. And not just one; but probably many sales in the future. 

Again, as an example, National Wholesale Company can provide your customers with quality merchandise at a cost that is probably much lower than they are already buying. Of course, if a store is part of a national chain, such as Wal-mart or Kmart, it will be very difficult to sell to them; they will be dealing directly with the manufacturer. However, for the smaller, locally owned stores, you have as good a chance as anyone to become their supplier. 

Myth: Stores make all their purchases on the basis of price alone. 

Fact: Price is only one consideration. The store is also looking for someone they feel they can trust, for someone who can provide good service, for someone who will take returns of damaged merchandise, for someone who will provide good credit terms, for someone who can provide many different items. 

One of the most important factors is whether the store buyer likes you or not. If he doesn't like or trust you, it doesn't matter how low your prices are--he won't buy. If he likes you and trusts you, he won't mind paying a little extra. This is especially true if you provide extra service, such as visiting more frequently to see what items he needs to restock.