Wholesale Club Pitfalls - How to avoid them
Wholesale Clubs have been around seriously since the 1980s, and earlier. Price Club was one of the first national, then international chains. Then, most notably came the Wal-mart version, Sams Club.
We use them as an example because they demonstate the pricing you can expect from a 'club'. While they were founded for businesses, and to shop you either needed a tax ID, the prices were only below retail, not wholesale. They provide good places for families to buy larger quantities on some items and save, but with the competitive nature of retail, it is almost always cheaper to buy retail on sale, in the real quantity you want, then to buy a large quantities at the clubs.
The internet has seen a flood of CLUBS putting up so called wholesale member websites. The first thing to consider is this. Do you want to pay to get into a club, that has a vague front page, that does not identify a long list of prducts and their prices, before you pay a memebership fee?
Think about if. If they had gucci purse for $49.99, they would say that on the front page. There would be a huge list, of everything they had at wholesale, the price, and the quantity required. If they really had one million great deals, surely they could list a few hundred text listings of the most popular items, on the main page for your inspection. Having done that, they could expect a flood of new memberships.
What you see instead, is a page full of vague terms, undfined products and prices, and lots of promises of a rainbow and a pot of gold. I will fall short of calling them liars, having never wasted my money on any lists, directories, or clubs promising me fantastic wholesale pricing. There are far too many free sources on the web to pay for information.
There are numerous wholesale CLUBS on the web, that are new names for old businesses, who shut down shop after defrauding a large number of retailers. Some are still on the web today, and operating until the next wave of complaints catches up with them. There are CLUBS that are not out just to take your money and give you nothing. But, most will not give you the value you are looking for, or the value they are promising.
CO-OPS
The latest version of the wholesale club is the wholesale co-op. Again, beware of these. There are many good co-ops in this country, but when one person is collecting the money, for numerous person, and then putting in a large order, there is oppportunity for fraud on a wide scale. Be sure to check out the management running the co-op thoroughly, and if you want to really play it safe be sure to follow these rules.
1. Pay by credit card, do a charge back if the merchandise doesn't arrive within the stated time.
2. Do not place an order that exceeds the limit your credit card provider has set for charge backs.
3. Do not enter into any deal, where the shipped product delivery date exceeds your credit card charge back deadline.
4. Be aware of FTC rules for mail order firms, which includes internet companys and transactions. Goods are generally expected to arrive within 30 days, unless clearly outlined in advance, and any extension of the delivery date beyond the 30 days, must be approved by you, or your money must be refunded.
5. Do not agree to terms that specify the member will pay a cancellation fee if you cancel at any time, if it includes cancelled orders for failure to perform within the agreed to terms.
6. Do not order through a co-op if you need the goods immediately or in a specific time frame