4 ms·

It would be insane for a small business to buy items at retail prices. They should be going to a wholesaler to buy what they need. I used to work for my uncle'

It would be insane for a small business to buy items at retail prices. They should be going to a wholesaler to buy what they need. I used to work for my uncle's coin-op business. I would often go to the wholesaler to purchase vending machine stock. Cases of cigarettes were insanely expensive ($2K each??) even at a wholesaler back in the late 1980s early 1990s.

pragmatic 7y ago
Use cases: stocking a few pop/snack machines. Getting copy paper/pens. Food for the company BBQ.
catblast 7y ago
You misunderstood. It’s for small businesses to stock up on items they need for their place of business, not for resale. Countless small offices in the US may need a lot more TP than a 3 person family but doesn’t need enough to justify a direct wholesale account. Same goes for coffee, snacks, various office appliances.
- jcrawfordor 7y ago
  There are businesses that buy stock for resale at Costco too. It's usually because the volume they buy is too small for wholesalers to take them seriously. Examples around here are small vending businesses and movie theaters.
  - kenhwang 7y ago
    The cafe near my office resells Costco baked goods like muffins and cookies. They primarily do hot breakfast/lunch/sandwiches, but hey, sometimes people just want a cookie.
chrismcb 7y ago
A small business isn't going to go to a wholesaler for small items that they use. If you are a small shop, with a handful of employees youll probably just go to Costco to get the small number of items you need. That is how Costco got started
carlob 7y ago
I don't think there can be any volume discount for cigarettes by law. I'm pretty sure tobacconists always make the same amount per pack regardless of how many they manage to move.
- thatcat 7y ago
  That's incorrect. Cartons are sold at a discounted pack price, large tins of lose tobacco are sold at a discounted per weight price.
  - carlob 7y ago
    That might be the case in the US but I'm sure it's not in the EU. As a matter of fact I think most European countries (except Germany) also forbid packets that don't have 20 cigarettes.

pragmatic 7y ago

Use cases: stocking a few pop/snack machines. Getting copy paper/pens. Food for the company BBQ.

catblast 7y ago

You misunderstood. It’s for small businesses to stock up on items they need for their place of business, not for resale. Countless small offices in the US may need a lot more TP than a 3 person family but doesn’t need enough to justify a direct wholesale account. Same goes for coffee, snacks, various office appliances.

jcrawfordor 7y ago
There are businesses that buy stock for resale at Costco too. It's usually because the volume they buy is too small for wholesalers to take them seriously. Examples around here are small vending businesses and movie theaters.
- kenhwang 7y ago
  The cafe near my office resells Costco baked goods like muffins and cookies. They primarily do hot breakfast/lunch/sandwiches, but hey, sometimes people just want a cookie.

chrismcb 7y ago

A small business isn't going to go to a wholesaler for small items that they use. If you are a small shop, with a handful of employees youll probably just go to Costco to get the small number of items you need. That is how Costco got started

carlob 7y ago

I don't think there can be any volume discount for cigarettes by law. I'm pretty sure tobacconists always make the same amount per pack regardless of how many they manage to move.

thatcat 7y ago
That's incorrect. Cartons are sold at a discounted pack price, large tins of lose tobacco are sold at a discounted per weight price.
- carlob 7y ago
  That might be the case in the US but I'm sure it's not in the EU. As a matter of fact I think most European countries (except Germany) also forbid packets that don't have 20 cigarettes.