Being a pound wholesale owner is difficult because every time some see a deal too good, the first doubt they have in their mind is about the authenticity of the products. Do they think are these products genuine or fake copies?

The answer to the primary question

Yes, pound stores sell genuine products.

Why am I confident?

Because I have been running a wholesale clearance business for most of my life. I have sold products to all your favourite neighbourhood retail stores forever and they keep coming back. Why? Because pound stores offer the best products at the best prices.

People keep coming back for more, for the best deals, for cheap products.

Why do people keep buying more?

I love telling stories so I am sharing one with you. This will give you a brief idea of why people become repeat customers at pound stores.

Oliver is a man in this late 40s. He walks up to the counter of a retail store and puts ten pairs of reading glasses on the counter and pushed a £10 note. Oliver was very happy walking to his car. Why? Because he kept forgetting where he put his glasses. Every day he would spend half an hour cursing under his breath and rummaging through the house to the failed discovery of the reading glass.

That is three hours every week, 14 hours in a month, and nearly 170 hours every year. So, he saved a week of stress and retained a good part of his nature, all in £10. Now I would call this a great deal, wouldn’t you?

Genuineness of products at these stores

Most people often wonder how can a pound store sell things like a bottle of Johnson’s baby oil, a bag of chocolates, tins of soups, a pack of batteries, toothpaste, an icer pray, and what note – everything can be yours for £1 each.

So, how do these stores manage to sell original & guanine products and manage to keep a low price?

There are multiple ways to do that. I will share with you a couple of ones that I deploy in my business.

1. Brand margin

Brands earn a premium on every product. How? The actual that any factory incurs on manufacturing the product is much lower than the price at which they sell it. There, in that gap, lies the profit. So, when you are buying items from a pound store, they are the ones having low brand margin or premium. Thereby reducing the gap between the cost of production and selling price.

2. Price negotiation

Let us imagine you want to buy product X from ABC Limited. But they say that you have to order at least 100,000 pieces for them to deliver directly to your store. What do you do? Place an order for that much knowing that you can only sell half of it? Of course not.

Here comes a wholesale partner. And the best part about having wholesalers? You can negotiate the price.

So, your favourite pound store has probably good cards with a wholesale seller who orders bulk items at a low price, adds little profit, and still manage to leave room for the retailer to earn a profit. And you, a consumer, are not forced into paying heavy prices for your favourite items.

3. Saving money is important

Businesses have been hit badly due to the COVID-19 pandemic and they do not want to miss out on any potential revenue. Hence, they are more focussed on attracting as many people to buy from them as possible. And they do that by offering discounts on the products that are most likely to attract buyers into their stores.

Do you want to know a secret? A consumer is more likely to buy an item when comparable items (options) are provided with one having a good discount. That makes you believe that you are getting a deal worth in gold out of this and are more likely to make a purchase.

Hey, psst, do not tell your pound store friends that I shared this trick with you, okay? Promise? Cool.

What if I like buying fakes that look original?

In that case, mate, we have a problem. Because a) buying fake goods is putting your health at massive risk, and b) you are indirectly funding criminal activities.

Whaaaat?

Yes, you are. Now hear me out.

First things first, you buying fakes is not good for your health. Say you like a bag from Chanel. That sequins & ruthenium-finish is so beautiful. And you cannot stop looking at the mesmerising white colour. But wait, let me see the price. £4,770 for a flap bag! That is what I earn in an entire month after hours of beating myself in the race for capitalism.

But what is that? My broke colleague is wearing that Chanel bag! She is junior to me! Who cares if her father is close to the Queen, you want that bag! So, you walk into a pound shop and buy a cheap £40 counterfeit that looks the same as the original. Who will be able to tell? Your body will.

Wearing fake products means you have no idea of how it was processed, what “potential” germs and infections it is carrying, and maybe you are allergic to the material used in that fake.

Second, you do not know where this fake Chanel bag was made. For all you know, it could be made from the blood and sweat of poor African kids earning $1 for a day’s work. These are closely knitted operations that are mostly, ahem, illegal. So, yeah, buying fake goods is indirectly funding these criminal organisations.

So, kids, what do we learn today?

We learnt that you shouldn’t buy fakes. We learnt that pound shops are the places where you get the best deals. We learnt that pounds stores are selling genuine products.

Lesson concluded.