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Resources

Terms:

  • wholesale: according to Dictionary.com, wholesale means “the sale of goods in quantity, as to retailers or jobbers, for resale” (a jobber is a wholesale merchant, who buys from the manufacturer and sells to retailers)
  • federal tax id #: a social security # for a business
  • line sheet: Sell sheet which contains all pertinent information for a business and their product lines (click for sample)
  • keystone pricing: a a common pricing method whereby an item is marked for sale at a price which is double the wholesale price
  • wholesale price: a discounted price offered to buyers intending to re-sell the product, often requiring a minimum order quantity
  • order minimum: a minimum quantity required to order, set by either the manufacturer or buyer
  • consignment: according to Wikipedia.com, consignment means “placing any material in the hand of another, but retaining ownership until the goods are sold.” Occasionally boutiques buy on consignment, which means the vendor or manufacturer ships them the product, and the boutique pays for the product once they sell it
  • drop ship: the act of a manufacturer shipping directly to the customer (a distributor is not involved in the supply chain)
  • supply chain: the entities, technologies, and processes involved from manufactuer of goods to final receipt of product by the consumer
  • brick-and-mortar: a business with a physical structure, such as a retail store or boutique, as opposed to an online only business
  • lead-time: time from sales order date to ship date, OR time from sales order date to receipt date by customer
  • terms of sale: delivery & payment terms of the sale, including when buyer makes payment & who pays for shipping
  • payment terms examples: “net 30″ indicates that full payment is expected within 30 days of invoice.  “2% 10, net 30″ indicates that a 2% discount can be taken by the buyer if payment is received in full within 10 days of invoice, and that full payment is expected within 30 days
  • FOB shippoint: seller pays shipping costs
  • FOB destination: buyer pays shipping costs
  • private label: the act of a seller packaging and labeling an item with his/her store’s name or brand, rather than the product retaining the manufacturer’s label  (i.e. your product is labeled as XYZ Boutique, rather than with your vendor’s name)