What does it mean to buy in bulk? There are many different definitions depending on the social and cultural norms of a country. Normally, these intermediary entities are referred to as wholesalers.
Wholesalers are businesses that purchase large quantities of goods at lower manufacturer prices and sell them to retailers or in some cases, directly to consumers. The prices that the products are sold are usually lower, given the high quantity of product that a person or company is buying at one time. These wholesale stores generally help to eliminate a lot of the hassle that is associated with working directly with manufacturers.
Large manufacturers have been able to increase factory gate prices by 0.3pc within the month of May. This increase is less than the 0.8pc increase that was achieved in May 2018. Furthermore, the total percentage decrease for 2019 has been totaled at 6.3pc, which is 0.4pc more than it was this same time last year.
These Central Statistics Office findings seem to be reporting that Irish manufacturing is not growing as steadily as it was in the previous year. Although as of late these export prices have been lower than usual, output price indices at home have been steadily above previous years. All of 2019 has shown figures of 100.2pc or higher in regards to output price, with May 2019 coming in at 100.6pc.
The CSO goes into detail about these wholesaler statistics, mentioning the different categories which include industrial producers, manufacturing industries, building and construction materials, and energy products. All of these have specific niches and extend theirs goods to places in and outside of Ireland.
In the United States, the same type of trade occurs. Although, one thing that is inherently different about the wholesale market in the US and Ireland is the availability of a wholesale store from which consumers can directly buy manufactured goods in bulk.
All of these US owned and operated wholesale clubs are membership-only organizations as well, meaning that you pay a monthly fee as a consumer to be able to even step into the doors of the organization. Additionally, you have a membership card that is checked before going into the store and at purchase, creating a very exclusive feel to the huge warehouse of goods.
Some examples of these include Costco and Sam’s. Costco is also located in other countries with dozens of stores successfully operating in the UK, Japan, Korea, and Mexico to name a few.
Businesses like this would not thrive in Ireland for a variety of reasons, but the most important one is the cultural differences in shopping. Europeans tend to buy in smaller portions than americans, picking up things that they need when they need them as opposed to having an almost endless supply hidden away within the depths of their homes or workplaces.
This difference has been a huge turn off for many people, despite the lower prices. No one is willing to purchase such huge quantities unless they are positive they would be able to use it.
Overall, this difference in consumer behavior makes the Irish market a less ideal option for US based wholesalers to come into, especially when most of the demand is being supplied by home based corporations.