As a landscape material supplier, you probably are selling your products in bulk and usually One (1) Tonne is the minimum calculation unit. But have you thought of selling your material products in small bags such as 20 kilo or 20 – 25 litre bags? If you do, a few questions you need to ask are:
- Should I buy bagged products and resell them?
- Where could I buy them from and how much each unit I could resell?
- How many units could I sell to my customers each year?
- What is the profit margin of reselling the bagged products?
- Is buying bagged products from landscaping products wholesale the only option?
Here are some insights for all the questions above.
1. Should I buy bagged products and resell them?
It depends on the demand of buying bagged products from your customers. If many of your customers keep asking you whether you sell bagged landscaping products such as mulches, sand & soils, decorative gravels, potting mix, quarry, recycled product, pebbles, manure etc and your answer is NO. It is a signal to start to think about the answers above.
2. Where could I buy them from and how much each unit I could resell?
The businesses who are selling landscaping bagged products supply their products to hardware retailers, nursery retailers, landscape products retailers and many more. Usually they are wholesale landscaping products and they bag their own products.
On average, the price of a 25 litre bag of landscaping material is $8.
3. How many units could I sell to my customers each year?
The answer is in line with how many customers you have and their demand in bagged products as mentioned above.
4. What is the profit margin of reselling bagged products?
For any customers, it is obvious that when they buy product in bulk, the price is cheaper and when they buy products in small volume, the price goes higher. The reason for this is that customers sacrifice their own room to store the cheap bulk product while the product supplier spends some time and effort to bag those bulk products into small bags which make the small bagged product expensive.
It is hard to answer the question above, but it is clear that the profit margin of reselling bagged products is not as high as when you bag your own products and sell them to your customers. Dell Computer is a great example. They revolutionized the personal computer industry by skipping the middle man and selling directly to the customer.
5. Is buying bagged products from landscaping products wholesale the only option?
It is not the only option obviously. You could bag your own products and sell them to your customers when they need bagged products. What you need to do is to buy small bags (20 kilo or 20 – 25 litre) and bag them by yourself.
There are two ways of bagging products by yourself. One is by hand (manually) and another option is letting a bagging machine do the hard work.
Whether you prefer to buy bagged products and resell them or to bag your own landscaping material and sell directly to your customers really depends on the demand of bagged products by your customers and the potential market out there.
In this competitive business environment, customers demand more options and variety to choose from and will always prefer to buy a speciality mixed product and are generally willing to pay premium for it.
Therefore, consider selling bagged product as a new way to grow your business.