Tips for Wholesale Business Success
Wholesalers, you are the middlemen that connects suppliers and buyers. You help product manufacturers get into retail stores and e-commerce sites and assist distributors on getting products their customers want and need. In order to establish the best customer relationship that addresses the needs of all those in the supply chain, be sure to consider the following tips.
Stay informed on consumer trends
Build a relationship of trust with your buyers by researching consumer insights, evolving tastes, economic trends and purchasing patterns to provide up-to-date data in order to help supply buyers with the best product options for their business. Ask your customers what their retailers are buzzing about. Inform them of where their industry is heading and work together to strategically build the best product catalog tailored for them. It’s not enough to be a price leader or even a competent logistics facilitator. None of that matters if you don’t offer products buyers want.
Protect your business with credit checks and delivering on time
Avoid getting squeezed between customers and manufacturers. Be sure to check references before establishing terms. Set a credit limit from the beginning and keep cash flow fluid by preventing receivables from aging too long. Once payment history has been established, adjust credit agreement that works for all parties. Be transparent about order timeline to ensure that suppliers can deliver within a time frame that is acceptable to buyers.
Alleviate supplier anxiety related to retail store management
Managing and communicating with retail stores directly can be costly and time consuming. Work with manufacturers to provide as much information as possible so that you can pass it along to buyers. Establish minimum order requirements, payment terms, and turnaround times that work for everyone within the supply chain. Confirm insurance policies and shipping/delivery protocols, especially exchange and return policies and damage/loss responsibilities up front. Assist with developing product profiles/line sheets that include: company overview, order instructions, SKU numbers and product descriptions featuring sizing and variations and other details, MSRP, unit price/volume breaks, and hi resolution images/product demo videos. Our platform offers digital catalogs your sales reps and delivery drivers can use to show buyers up-to-date product information on the go!
Stay flexible with lean inventory
Rent, don’t own inventory! Be mindful of the product life cycles in your portfolio. If there’s too much inventory it ties up resources that could be applied to other operations and your firm runs the risk of losing revenue if those items take too long to sell, cost too much to store or cannot be returned. Purchase more SKUs with long cycles such as industrial tools, parts and equipment and purchase less items with shorter cycles such as perishable food products. Stock at a level to sell before you have to pay for it to keep cash flow going. If a manufacturer has a net 30 term, try to sell those items before those 30 days are up. To maximize profits, turn inventory as quickly and as often as possible.