Once you have a vendor's license and/or tax I.D. number, you should be eligible to buy your supplies for less.  If you are still purchasing materials through a retail outlet, make sure you tell them that you have tax-exempt status. This means that you are not required to pay state sales tax on items you are going to use to make your product. Some stores will have you fill out an exemption certificate which they keep on file while others require that you complete a new form with each purchase.  If the latter is the case, remember to have your licence/I.D. number with you, or you will not be permitted to make a tax-free transaction.  Another thing to remember is that this is only for raw materials you will use in the creation of your product or finished items intended for resale, it does not apply to equipment you use or office supplies.

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Another possible way to save is to find stores that offer additional discount via a members-only program.  I buy most of my materials at a local discount outlet.  Prices are 40% off the ticketed price, and for $20 a year, my company gets an additional 10% off.  Combined with sales tax exemption, this is a cost-effective and convenient arrangement.
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The best way to buy raw materials as well as finished products is through a wholesale supplier.  Most of the time they will be considerably less expensive than any other source, but be sure to check around.  One drawback for a small business like mine is that most wholesalers have a minimum order amount.  Some of them are quite high for those on a limited budget.  Many retailers also have wholesale programs for vendors.
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