It is really important for the wholesale owners to maintain competitive edge and find retailers on a consistent basis. But to be very honest it is quite a complicated task. Usually, wholesalers act as a middleman between manufacturer and distributor, and the crucial part is leveraging that position to your best advantage. We are offering you some of the finest strategies to grow your wholesale business and get more wholesale customers and more frequent orders.
- Source your products from China–
China is the hub of manufacturing cheap goods. Whether you sell electronic goods or toys, you can source everything from China. You simply need to find a reliable Chinese sourcing agent. By importing products from China at a cheap price, you can sell them to the retailers at a much affordable price compared to your competitors without denting your profit margin. It is an excellent way of running a wholesale business successfully.
- Keep your cash flow under control-
Controlling cash flow is the most important part of your wholesale distribution business. Give more emphasis on collecting receivables and strictly avoid folding to demands for extended payment terms. Produce regular flash reports that include information like cash availability, daily/weekly/YTD sales, payables, key inventory, best/worst selling items, etc.
- Speed up order fulfillment-
If your order process is taking too long it’s failing your company and your customer even before the delivery is made. Give top priority in keeping adequate stock so that your clients are not disappointed and give your Chinese sourcing agent the entire list of products well in advance. Make sure your orders process is automated and easy to use.
- Set up a Website-
If you are considering starting a wholesale business, you will need to set up a website. Through it, you can inform manufacturers that you are willing to do business with them. This way, they can contact you instead of you running after them. Your website will also attract retailers who might be interested in selling your products.
- Give excellent customer service-
Always treat your buyers with courtesy and radiate professionalism. Be willing to go the extra mile for a retailer who purchases your products, and never be afraid to lose an occasional “battle” in order to win the wholesale business “war.”
By utilizing these tips, you can give a flying start to your wholesale business and stay ahead in the game. Tax laws vary between states, but it’s a general rule-of-thumb to keep a copy of your retailer’s resellers’ licenses, and only sell wholesale to those who have them.