- Figure out your wholesale pricing since the beginning
Even if selling wholesale is not part of your short-term plan, be prepared for it. Indeed it is a necessary step in the development of a brand so you have to think about the implications since day one.
On your promotional material (as well as in your business plan) take into account a cut of at least 50% of your retail price to calculate the wholesale price. Indeed a common mistake made by the brand is to figure out a pricing based on direct sales. Then when they want to expand in wholesale, they have no solution but increasing the retail price to remain profitable with a 50% cut in wholesale.
- Think about minimum order quantity
You can not live without. Every buyer will ask you this question. It is also part of your distribution strategy and of your margin calculation. If you will meet a particular buyer, make your due diligence first. Find out what would be the ideal MOQ for a profitable partnership for both of you. Check also their price range to select to select the good products.
- Take your processes to the next level
Contrary to direct sales, B2B sales are a lot of paperwork, excel sheets, follow-up. Starting with a weak process can be a real burden as you grow.
Here are the must haves for a brand when dealing wholesale:
- Online showroom
- Line sheet generation system
- Online order capture
- Newsletter system
- Prospection tool
If you are not using Uppler for all of this, it can cost you a lot of money. But, at the end of the day, you can’t do without.