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In every business, there is always pros and cons. If the pros outweighs the cons, then it’s all good. This is just the same with companies in the wholesale clothing and wholesale apparel industry. For the pros, these wholesalers can get their merchandise at a dirt cheap price because they rely on importers and liquidators who sells in pallets and truck loads of closeout items from different sources. These items are normally brand new and some even came from big department stores. If they get it at a dirt cheap price, naturally, they want to sell it at an extremely low price up to 80% cheaper than standard wholesale prices. The savings then pass on to the retailers so they can get better profit margin then in turn move the inventory pretty fast. Cons. On a slow economy like this, resellers are stuck with the inventory they bought months and months ago because there are not very many buyers who are willing to spend any money even for an extremely cheap price. They’d rather save the little money they have than spend it for any emergency.
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