LandInvestors.com Forums **Ask A Question** “WHOLESALE”

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  • #24085
    Collins B. Case
    Participant
    Post count: 28

    I’d like to give a general shout out to the word “wholesale”

    It appears very few people actually know what the word means in real estate, so it has taken on many different meanings and can be used ubiquitously! Few words can completely abandon their true meaning and application such as this one has.

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  • Kevin Farrell
    Moderator
    Post count: 1532
    ProAdvanced

    Wholesale discussion
    From Merriam-Webster
    1. the sale of commodities in quantity usually for resale (as by a retail merchant)
    2a. performed or existing on a large scale especially without discrimination
    2b. of, relating to, or engaged in the sale of commodities in quantity for resale
    3. in a wholesale manner
    4. to sell (something) in quantity usually for resale

    Other entries for Wholesale:
    5. to sell (things) to other businesses rather than to individual customers
    6. to be sold to other businesses for a specified price

    We can use this word as a noun, adjective or verb. I tend to use the word to describe my real estate offer as “wholesale” meaning much lower priced than the market price. Also implying that my intent is to re-sell the property for profit. The most used meaning of the word would be for large quantities of goods and some of us deal in land in large quantities. More importantly, when I tell someone that my offer to purchase their property is a “wholesale” price, they understand my meaning.

    It is Sunday and I just finished listening to “A Way With Words” on NPR this morning so I am pretty geeked out with my dictionary today.

    Kevin Farrell - Moderator
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    Shawn Swisher
    Participant
    Post count: 63
    Pro

    From my experience, there isn’t a black and white definition, at least in terms of what wholesale pricing means. I’ve been in various retail businesses dating back to 1997 and I’ve seen product categories where it was normal for wholesale prices to be 90% or more of retail while others had wholesale prices that were less than 25% of retail. Then there was everything in between. The Land Academy program teaches to buy at 20-35% and sell at 40-70% of retail, which produces a range of wholesale pricing. Some folks have the idea that wholesale is supposed to be 50% of retail and that’s just not always the case. Then you throw in the fact that in this business, “retail” is not a concrete number itself, so that just compounds the problem even further.

    "Buy land, they're not making it anymore." -Mark Twain
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