Going wholesale will frequently provide a massive benefit to your company if you leverage it the right way. By selling your products in bulk to select retailers, you’re able to move much more merchandise in a shorter amount of time. While plenty of brands are running their own online stores, wholesale is one of the most tried and true ways to grow your business while simultaneously building more product awareness. Though wholesale may sound as easy as paying for shipping, it’s a little more complex than it initially seems. Here’s what you need to know if you’ve decided to sell wholesale.
Finicky Finances
On paper, wholesale sounds like a big paycheck. While this is often true, it doesn’t mean that there aren’t added financial considerations to keep in mind. Selling your products in bulk translates to higher production costs, increased shipping fees, and product storage you may not have considered. Do you have somewhere to keep orders awaiting fulfilment? Do you have Pallet Jacks to load products for transportation? You need to ask yourself these kinds of questions, as they will help keep you accountable and ensure nothing falls by the wayside.
It’s important to do the math on what your overhead will be and adjust accordingly. Your increased expenses need to be accounted for somehow. Make sure you’re keeping dedicated logs on how your money is being spent to avoid any sticky financial situations.
Market to Your Market
It’s a common misconception that a wholesale good needs to be geared towards the retailer. Actually, you should never stop marketing to the consumer. Does your product fill a need? Is there a demand for a store to carry your brand? Is it user-friendly? While discussing favorable terms with retailers won’t hurt your case, they ultimately want to know that your product is going to perform well and get people into their stores. Most wholesale scenarios see the retailer as more of your partner and less of a customer.
If you’re able to capture a segment of the market for your retail partnership, that will only give them incentive to keep placing orders with you. Repeat business is often the lifeblood of a wholesale arrangement. Plus, if you perform well enough for the right retailers, they may be inclined to pay you extra for exclusive use of your brand and products. Always think about how you can turn your situation into a win-win.
Think of the Alternatives
If producing your own products for wholesale seems a bit intimidating, don’t worry. There are other ways to break into the wholesale market without utilizing the time and money required of product development, such as becoming a reseller. Resellers are becoming more and more popular as they offer products at a fraction of their in-store prices. For example, you could find WalMart or Target liquidation pallets full of customer returns that you can then turn around as a reseller. This is an attractive option for consumers as they’re then able to find name-brand goods for cheaper prices. Since resellers often work with liquidation merchandise, they are also dodging wholesale prices.
A Rewarding Approach
Whichever approach you end up taking, know that going wholesale is often incredibly rewarding, but it will require a lot of time and effort to do correctly. Start by landing smaller accounts and stores before you take the plunge with a massive retailer. You’ll be able to develop a feel for wholesale. You’ll also better understand your production schedules, financial needs, and general overhead. Don’t get down on yourself if you don’t immediately sell to the Home Shopping Network! Taking the steps towards going wholesale is an accomplishment in itself.
