Many aspiring entrepreneurs build a successful business selling DVDs. But competition in the DVD market is tough, and pricing is everything. Getting a competitive per-unit cost requires finding wholesale DVDs at deep discounts and having a decent amount of capital to invest.
Negotiate with stores that specialise in liquidation. If a store is closing or needs to move large amounts of product, they'll often sell pallets of DVDs to liquidating companies. These companies then offer prices per pallet or load, which gives you a super-low per-unit price.
Approach local movie stores. Movie stores clearance out inventory quarterly. Get to know the manager and negotiate wholesale prices. For example, you might take some older stock off their hands at a deep discount, but they'll need to throw in some new releases at a bargain price.
Focus on niche DVD sales. This will give you more opportunities to market directly to your target market. For example, if you're planning on specialising in kids DVDs, target the manufacturer of Barney DVDs (TM & Jacks). Then ask about becoming a wholesaler.
Check out online bidding sites. Oftentimes, companies that have excess stock will auction off wholesale DVDs at a bargain price.
Prepare to provide personal information. If you contact a manufacturer, the company may require that you submit an application to sell its products and that you place an order worth thousands of dollars.
- Get your investment capital ready. Successfully buying wholesale DVDs requires an investment. Typically, the larger the investment, the lower the per-unit cost, which adds up to more profits.
- Don't forget to check out companies before making your purchase. This is especially true for online wholesalers you haven't done business with before. Check out the company with the Better Business Bureau. You'll be able to review complaints (if any) and see what rating they have.