How Do You Run A Successful Wholesale And Retail Business Competing Against Online Sales?
Buying wholesale products and then selling at retail prices is one of the most lucrative businesses any entrepreneur can start. The business model has a simple concept; buy wholesale at a cheaper price in large quantities and then resell at higher retail prices.
Though the concept is simple, there are some basics one needs to learn before jumping into this business. If played right you can double your investment within a short period of time, but there is more to the business than just buying at cheaper prices in bulk and then selling in lower quantities at higher prices.
If you want to jump into a wholesale and retail business this article will help you build a solid foundation for your business.
Choose The Right Product
Your journey begins by deciding and picking the right product and will determine the success of your business. The right product means a product people are hungry to buy and a brand that’s trusted by your targeted prospects; these should be products people are visiting retail stores daily to buy.
No store owner will buy products that aren’t needed by their customers. Before you even decide on the product to wholesale you need to conduct a survey to ensure that you’re investing your money on the right product.
Choosing The Right Source
This is another important aspect that plays a major role when it comes to the success of your business. You need to find a source that offers the best possible price in the marketing. You should note that even a few cents can make a difference when it comes to wholesale and retail business.
You’ll also need to conduct a survey and compare prices from different stores, this can be a tough task when you’re dealing with offline wholesalers, but it’s easier with online wholesalers since you compare prices by visiting a few websites using your phone or computer.
The leading global online wholesaler is Alibaba.com, there are other suppliers worth taking a look at also, directories are available that list down these suppliers and some of them include; wholesale central, DOBA, WordWide Brands and SaleHoo.
There are free and paid directories, but with the paid directories you know you’ll find better suppliers. SaleHoo, for example, charges less than $100 annually while WorldWide Brands charge a onetime fee of $299 for a lifetime.
Any directory you’re joining should give you access to communicate with the supplier and should be able to provide reviews on any supplier before ordering their products.
Set Your Pricing Right
Some research has to be done here because you can’t just set up any price you want for your wholesale products, even if you managed to sell your products at higher prices, sooner or later when store owners find cheaper options they’ll not buy from you again.
So you need to find selling prices from other wholesalers so that you can set your own right. If you must sell at a higher price that deviates from other wholesalers you have to add extra value that separates you from them.
It’s normal to sell your products at 2x of your wholesale price to retailers. It all comes down to the market price that holds at any given time. Set pricing that will help you sell your products faster.
Understand Your Target Retailers
Not all retail store owners have the same buying strategies; you need to study each store differently especially if they have a large audience.
At small stores you’ll mostly be dealing with the store owner, for large stores, the owners are hard to reach, you’ll get a hard time before reaching decision-makers.
Take Note Of Taxes
You need to get tax ID documentation from all your retail buyers. Only sell your products to retailers that have a license and you need to maintain a copy all the time.
Market Your Products To End Customers As Well
You’ll even make more profit if you target end customers. The more you’re selling your products to end customers the more they’ll visit retail stores to buy your products and that means your retailers will also demand more products without a push.
Get Ready For Rejections
No matter how good your prices are you’ll face rejections from the start, you need to learn the art of selling in order to handle rejections appropriately.
Just because you’re rejected from the start it doesn’t mean you can’t make it through, even your loyal retailers might reject your products at some point and you need to learn how to persuade them.
Stay Up To Date With Current Trends
End customers are always looking for trending items and that’s where you need to focus also, this will ensure that your business is always on the rise.
What we’ve shared in this article is just a scratch of the surface, there’s a lot that needs to be learned when it comes to wholesale and retail business. This article, however, should serve as an introduction to the basic concept you need to learn in order to succeed in the wholesale and retail business.