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Wholesale Audio Club Q&A

More Wholesale Audio Club Q&A

If you are new to the electronics industry:

I have compiled this new question and answer outline, so the new dealers can brush up on the terms used in our industry.

Ready to get started.


Q: What is a manufacturer?

A: A manufacturer is the maker of the brand. Most manufacturers of mobile electronics reside in China & Korea. (Although some of the better brands do manufacture here in the USA)

Q: What is a distributor?

A: A distributor is a privately owned mass supplier to the dealers. The distributor has massive buying power and stocks each electronics item in large quantities.

Most wholesale electronics distributors here in the USA sell at the same "dealer price" that the actual manufacturer does. The distributors function is to supply the electronics goods at a closer proximity without a price increase to the licensed dealer. Keep in mind, using "will-call" is a way to save $$. Simply search for the distributors in your state after completion of your membership. You will save tons on shipping - by picking up the orders yourself. ( will-call )

There are over 145 massive 50,000 SQ Foot wholesale electronics warehouses across the United States. Chances are there are many near you. Remember, these companies only sell to licensed retailers / dealers / internet sellers / etc.

Q: What is a drop shipper?

A: A drop shipper is a wholesale distributor that is willing to ship to more than 1 location for you. A drop ship distributor will ship anything to anyone, any state.

You pay for the product, they ship it directly to your customer. You never touch the product. This saves on shipping costs, therefore increasing your profit potential.

Q: What makes a company a "real wholesaler"?

A: ALL real wholesalers require a valid tax i.d. and or business license from all applicants. Real wholesale distributors will clearly mark their sites and catalogs with

"Wholesale sales only to dealers" A real wholesale distributor will never sell to the general public. Your wholesale sources remain confidential.

Q: What is a factory rep?

A: A factory rep is the guy who calls on the dealers for the manufacturers. He sells and trains the dealers. All manufacturers have "reps"

We list all 12 volt reps here in the United States within the main Wholesale Audio Club Logged In Section. You will only need to deal with the factory rep when you buy direct and not through a wholesale distributor.

Q: What are trade shows?

A: A trade show is the place where all of the manufacturers show their new products to the dealers and the wholesale distributors. Each year there are several confidential trade shows for the consumer electronics industry. You must be a licensed dealer at least,.. to attend these shows. We of course list all of the best trade shows for the consumer electronics industry within the logged in section of the main club site. You will have access within a few hours of activation. Call and reserve your hotel room for the winter consumer electronics show! See ya there!

What are trade schools?

A: Trade schools are schools / colleges / that provide education on specific trades. Of course we list all of the trade schools for mobile electronics here in the USA - within the logged in section of the main club site. There are many schools providing classes on mobile electronics / car audio installation and sales.

Q: What is a retailer?

A: A retailer is a dealer / outlet that sells to anyone. Examples include: Circuit City, Best Buy, The good guys, Audio Express etc.....

Q: What is a dealer?

A: see " what is a retailer" above.

Q: What is a master distributor?

A: A master distributor is also known as a "parallel distributor" These companies carry double quantities as well as have the "harder to locate brands"

A master distributor can also be simply a "large scale" distributor. They buy in massive 60 Ft. Container lots and offer amazingly low wholesale prices. Wholesale Audio Club uncovers the real master-wholesalers of car and some home audio here in the United States. We make it easy for the small dealer to plug in to where the big boys buy their goods. Get ready to take your business to the next level and beyond.

Q: What is e-bay?

A: E-Bay is an auction house. Small dealers and private sellers list their goods for sale to the highest bidder. Our members have much more success selling through custom web sites, although if done right, you can make thousands on e-bay. Its all about finding nitch products. It can be done,....however, we suggest selling through small shops, and custom web sites made for selling audio. The flea market, local high schools..... are also great places to sell audio & electronics.

Q: Why sell electronics?

A: Billions are spent each year on consumer electronics. Do you know anyone who doesn’t own a stereo? Why not sell things people need and use. Everyone uses audio & electronics items! Plus, you love electronics too right? Go ahead and put some of those profits in your pocket.

Q: What does net-30 mean?

A: Net-30 is where you buy products on credit throughout the month and the distributor sends you a bill for the entire months purchases. N-30 = net 30 days

Q: What is COD?

A: COD means Cash On Delivery. UPS offers COD services for mail order dealers who will ship the oder to the customer and have them pay UPS upon delivery of the item. Then UPS sends you the check or money order.

Q: What is an open account?

A: see ( Net-30 ) above. An open account is where you buy on credit from the distributor. You will be invoiced monthly for your purchases. You must apply for any and all net-30 or open terms.

Q: What does pre-paid shipping mean?

A: Pre-Paid shipping means that you have reached the desired volume or dollar amount to qualify for the order to be shipped "Pre-Paid Freight" the distributor is paying for the shipping. Usually this happens at the $2,500 level.

Q: What is a container?

A: A container is a "Railway Container" these are the big shipping containers you see on the railroad lines. Large volume distributors and retailers order in this way.

There are 40 Foot and 60 Foot rail containers.

Q: What is a skid?

A: A skid is a pallet of merchandise found in a wholesale warehouse. Usually a skid will be shrink wrapped and ready for transport. If you can, its best to buy "a skid" at a time from the larger wholesalers. You will receive discounts based on volume orders. Every wholesaler will offer additional discounts based on larger volume quantities.

It is not necessary to buy "skids"

Q: What does volume order mean?

A: Volume means quantity. The larger the volume, the larger the quantity.

Q: What is an importer?

A: An importer is a large warehouse that brings in its merchandise from outside of the United States.

What is a parallel distributor?

A: A (parallel) Distributor is a wholesale distributor known for carrying brands that can only be purchased parallel through other mass merchants. In other words, they are not direct with the manufacturer. Often the warranty from such distributors is “repair only”

What does purchase order mean?

A: Purchase order means to place an order for purchase. The “buyer” of the electronics store usually generates store purchase orders to be filled by the various wholesale distributors.

What is a PO ?

A: See “purchase order” above

What is a Purchase Order Number?

A: A purchase order number is the number assigned to the purchase order for record keeping by the stereo shop and the supplier.

What is an RMA ?

A: RMA = Return Merchandise Authorization It is customary to receive a RMA reference number from your supplier prior to sending any merchandise back for repair or re-stock.

Why do I need an RMA?

A: Most all wholesalers / distributors & manufacturers require a RMA prior to acceptance of your return. If you send something back without a RMA, its likely it won’t be processed.


What is a tax i.d. ?

A: A tax id is a number that is assigned to you by the federal government. This number gives you the right to buy at wholesale with no sales tax.

What is a business license?

A: A business license is a license issued to you by your state. This gives you the legal ability to buy & re-sell items as a “ business “

Where can I get a Tax i.d. or Business license?

A: For information about business licensing, contact your state capital. They can best assist you. Or click here for help.


 

What is an EIN?

A: A EIN = Employer Identification Number and is issued by the IRS.

What does wholesale audio club do?

A: Wholesale Audio Club provides wholesale audio and electronics products ( drop-shipping ) as well as business related wholesale services that connect your company with over 145 of the largest real B2B consumer electronics wholesale master distributors. We maintain the most informative confidential wholesale car & home audio data-base in the USA. We provide a broadcast fax service for you as well to all of the other distributors so you will have catalogs and dealer price sheets from many of the top US wholesale electronics warehouses. Click Here for more information on Wholesale Audio Club, and how to get signed up.

What brands will I be able to sell through this club?

A: Most all of the top brands of car audio, and many great home audio names like Alpine, Kenwood, Sony, Kicker, Rockford Fosgate, JBL, AudioSource, MTX, Clarion, Phoenix Gold,

Monster Cable, JVC, and many many more….. way to many to list here. (500 brands)

What is a profit margin?

A: Profit Margin is the difference between what you paid for it and what you sold it for.

Average profit margin on car audio amplifiers = 68% ( retail )

How much profit is made with electronics?

A: Billions of dollars each year are spent on consumer electronics. All you need is a little slice of that pie!

What are some of the ways that the other members sell electronics?

A: Online through a custom web site, through e-bay, through the flea markets, through high schools and friends, through your garage, through a small or large store, through mail order.