Q. How do wholesale companies buy their product directly from the factory?

Each wholesale company has a unique method of bargaining with factories in order to get products at a low price.

The following links explain how wholesalers work in general, but since each company has unique goals and markets, it would be best to contact a wholesaler directly for more information.  

http://www.ehow.com/how-does_4587432_wholesale-distribution-work.html

http://www.entrepreneur.com/article/190460