There are many benefits to buying licensed merchandise wholesale. It allows you to avoid paying sales tax on items that are resold, but also provides you with the freedom to purchase items at a lower price. You can also save a lot of money on retail costs. To learn more about the benefits of licensed merchandise, read on! After reading this article, you’ll be well on your way to being a profitable wholesaler! Here’s how to get started.
Licensed Apparel: One of the hottest products in the apparel industry is licensed apparel. You can buy wholesale sunglasses, hats, socks, and even jewelry. Licensed merchandise will help you stay up to date on the newest trends. There’s a wide variety of these items, so you’re sure to find something that appeals to your target market. You can even use these products to market your business or promote an event.
Licensed Accessories: In addition to clothing, licensed accessories include headwear and knitwear. Buying licensed items from a wholesaler allows you to increase your profit margins and promote community spirit. Licensed apparel also helps you get your name out there and build a loyal fan base. For example, if your team has a local football team, you can order wholesale licensed gear to promote community spirit. For smaller teams, you can order customized sports gear for your fans.
Royalties: In licensing an item, you may pay royalties to the licensor. Royalties typically range from two to twenty percent of net sales. The rate depends on the type of licensed property, the demand, and the licensor’s track record. Generally, royalties are paid quarterly. You must calculate net sales before calculating royalties. However, make sure you include the wholesale price when calculating royalty rates.