Selling wholesale is an important part of the business world. There is no doubt that there is a huge demand for these products. Clients love having the option of paying less for their supplies than a retailer would charge them. However, you may be having trouble getting started selling wholesale. Here are some tips that can help you start making quick progress in your wholesale business strategy.
1. Consider the optimal cold contact cycle
This is the phrase that represents the initial contact between business owner and potential customer. It is when they have had no previous contact in the past. When you are a wholesaler contacting customers, it is important to know when to push and when to hold back. In this case, it is beneficial if you send them three emails. The first is to introduce yourself and your business. The second is sent about two weeks later. It is a follow up, and just checking in with them. Finally, you should send a final follow up a few weeks later. If you have still not heard anything from them, they are likely not interested in doing business with you.
2. Incorporate formulas into your prices
Selecting a fair price for your products means making sure that everyone is happy. Your customers want to see lower prices than retail, but you also have to be making a profit. The formula that you choose to price your products is up to you. A common example includes:
- Materials + labour + fixed expenses + profit = wholesale
- Wholesale x 2 = retail
3. Focus on your customer relationships
Maintaining good relationships is the key to staying in business. Keeping existing customers is cheaper and easier than finding new ones. As well, it is easier to make deals with customers who you have already worked with. For instance, they might promote your business on their social media page in exchange for a coupon for your products.
4. Appeal to new customers online
A great deal of business is now conducted online. Retailer and wholesale customers will actively seek suppliers online. Many prefer this method because it is more convenient for them to view the product. If they find something that they like, they will be more likely to purchase it online on the spot.
5. Implement an inventory system
Customers will look for suppliers who are organized and professional. As a wholesaler, you should know exactly how much inventory you have at any one time. Maintain a system that records how much supplies you have left and how quickly they are dwindling. You should also understand about having a safety net in stock.
6. Focus on customer service
Customers want to be kept happy at all times. If you do not provide this for them, they will go to one of your competitors instead. Think of all the ways that you could improve on speed and convenience for them. Perhaps you could differentiate your products more, so that they have more variety. Or you could set up a FAQ section on your website to answer customer queries ASAP.