(Determining the Good from the Bad)
Your investments are hard-earned. You may have all the money in the world but you didn’t just pick them up on the streets. You earned it because you worked hard. But when you lose your money to deceptive wholesalers, you feel cheated, stepped on and betrayed. It’s really disappointing that you just want to strangle these merciless people. Whether you’re a newbie to the business or not, you’ve got to stop them before you fall into their prey.
Here are 6 signs to help you determine whether you are dealing with wholesaler crooks or lawbreakers:
- Try making a phone call with this wholesaler. When this wholesaler sounds unprofessional or doesn’t carry on with business-like conversations or just answers with a simple “Yes” or “Hello” without mentioning his name or the business, then you might be dealing with fakes.
- During the initial contacts, wholesalers really request for a business license or sales tax ID. Mostly, these are required by legitimate wholesalers. US sellers desiring to buy from US wholesalers need a tax ID. But if you’re living outside of the US, you no longer need a tax ID.
- When you request for product samples, wholesalers tend to be suspicious. But usually wholesalers don’t see anything wrong with offering a product sample (although it’s typically offered at a higher price). If your prospective wholesaler doesn’t offer one, then ask for the reasons why.
- At first, wholesalers declare that they only adhere to secured form of payments like credit cards, Paypal and others. Later on, they’ll declare that only wire transfers or western union are accepted. Not all wholesalers resorting to unsecured payment methods are deceitful. Yet, deceptive people operate in this manner. So, always be cautious if ever this happens especially when you haven’t known the person.
- Websites offer their physical addresses and contact details. But if their website doesn’t, then you need to be careful. Ask for their contact details and if they don’t mind you coming in and checking on their offices. This shouldn’t be a problem at all if they are not hiding something from you.
- Wholesalers may assert that they don’t have stocks in hand and continue to ask for upfront payments. So, just ask for photographic evidences of the supplier’s stocks and have it published in the newspaper. There’s no guarantee that it works but there’s no harm in trying!
Always keep these rules in mind. Be cautious enough especially when you’re applying with a new wholesale contact!