Tips for wholesale business success

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Wholesalers, you are the middlemen that connect suppliers and buyers. You help product manufacturers get into retail stores and e-commerce sites and you help distributors get the products their customers want and need. To build the best customer relationship that addresses the needs of all those in the supply chain, be sure to consider the following tips.

Stay informed about consumer trends.
Develop a relationship of trust with your buyers by researching consumer insights, evolving tastes, economic trends, and purchasing patterns to provide up-to-date data to help provide buyers with the best product options for your business. Ask your customers what their retailers are talking about. Let them know where your industry is headed, and work together to marketing list of plumbers email strategically create 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 the products that buyers want.

Protect your business with credit checks and on-time delivery
Avoid squeezing between customers and manufacturers. Be sure to check references before setting terms. Set a credit limit from the start and keep cash flow flowing by keeping accounts receivable from looking too much. Once payment history has been established, fine-tune the credit agreement that works for all parties. Be transparent about the order schedule to ensure suppliers can deliver within a timeframe acceptable to buyers.

Ease supplier anxiety related to retail store management
Managing and communicating directly with retail stores can be costly and time-consuming. Work with manufacturers to provide as much information as possible so you can pass it along to buyers. Establish minimum order requirements, payment terms, and response 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 in advance. Help develop product profiles/line sheets that include: company overview, ordering instructions, SKU numbers and product descriptions with sizes and variations and other details, MSRP, unit pricing/volume breaks, and high-resolution images/product demo videos. Our platform offers digital catalogs that your sales reps and delivery drivers can use to show shoppers up-to-date product information on the fly!

Stay flexible with tight inventory
Rent, don't own inventory! Consider product life cycles in your portfolio. Too much inventory ties up resources that could be applied to other operations, and your company risks losing revenue if those items take too long to sell, cost too much to stock, or can't be returned. Buy more SKUs with long cycles, such as industrial tools, parts, and equipment, and buy fewer items with shorter cycles, such as perishable food products. Stock at a level to sell before you have to pay to maintain cash flow. If a manufacturer has a net lead time of 30, try to sell those items before those 30 days are up. To maximize profits, take inventory as quickly and as often as possible.