As a wholesaler you want to see your business run efficiently, right? Here are tips that will help you do it:
Grow your volumes
As you know, the wholesale business is all about volumes. To increase your profits you have to increase the number of products that you buy from the manufacturers. The rule of the game has been: the more you buy, the lower the buying prices thus the higher the profits you make.
Undertake co-op purchasing
To be in the wholesale business you need to have a large capital. You need the money to stock up inventory so that you are able to meet the demands on your customers.
If you are dealing with many products you need even more money. When you are buying from manufacturers, the manufacturers require you to buy a minimum number of units. If you need many products you have to deal with many minimums which are costly.
If you don’t have a large budget to take care of all the minimums, you should consider joining hands with other wholesalers and co-op purchase the products. This way you will have a larger financial power thus be able to buy plenty of products.
To be safe, work with reputable wholesalers.
Grow your customers
Customers are the lifeblood of your business; therefore, you should have plenty of them for you to continue being in business. One of the ways of getting them is visiting the stores that sell the products that you are selling.
With the digital era, things are now easier as all you need to do is send emails to the retailers and if interested in your products, they reach back. To encourage them to buy from you, you should give incentives.
Another way of getting customers is increasing your exposure. Almost everyone is using the online space; therefore, you should take advantage of it. One of the ways of doing it is having a professional and well optimized website.
You should also list your business in wholesale business directories. There are people who list their business in general business directories, but this isn’t right. For professionalism and to make it easy for people to find you, list your business in a wholesale directory.
Another way of increasing your exposure is participating in trade shows. You should get a stand and display your products.
Watch your credit
As a wholesaler you function as a middleman between the manufacturers and retailers. This means that you work with two different people with different working techniques.
Many wholesalers find themselves in problems when customers don’t pay them on time and yet the manufacturers need the money. To avoid being in such a scenario avoid giving extended credit terms to the customers.