Do you want to do something serious but don’t know where to start? If you have business acumen, perseverance and can count at least a little, remember that you can make a big profit if you organise a wholesale business properly. how do you do it so as not to burn out?
Of course, this is not so easy, especially if you have no idea how to work in this field but will be starting a wholesale business from scratch without any previous knowledge. In order not to burn out, you need to know exactly what you want in this business, what your goals are, ie planning is important. If you have a goal and a plan to achieve that goal, it will be easier for you to move forward step by step.
Let’s talk about where to start and you need to start by researching the market – is there a demand for the product you want to buy, if so how big is it or maybe is it dwindling, in which case you risk failing. In other words, we start by choosing a niche. Then we study consumers and your possible competitors with their strengths and weaknesses later to analyse and draw conclusions. This is very important because the more competition you have, the more difficult it will be for you to prevail, especially since you are a beginner and they already have everything under control.
It is impossible to start your own business, in this case a wholesale business, without knowing your potential customers and their needs. On the one hand, you don’t need much to get started – you contact China, for example, order a wholesale batch of phones there, add your percentage and sell it.
It all seems simple, but if you don’t create a business plan, don’t calculate the costs and don’t find a point of sale in advance, then you are guaranteed wholesale business failure.
What is a business plan?
A business plan is comparable to a torch that shows you the way in the dark, but only if you don’t just wave it in all directions, but shine it specifically only in the direction you want to go. Similarly, a business plan is what was mentioned above, only in order, structured. This is the path your business will take. When you set out and know where, immediately grab a pen and notebook and write down in detail:
What am I going to buy?
Who am I offering it to?
How much money do I have for it?
Do I have competition, who are they and how many are there?
My next goals?
Long term goals?
Possible mistakes and methods to correct the situation.
Do I have advertising, labour or other additional costs?
A business plan is not a one-time entry, but your diary in which you record your conclusions, decisions, goals, problems and their adjustments every day.
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Calculating wholesale costs
Do you know the saying “a penny saves a ruble”? Indeed – it really does. What many entrepreneurs lack is bookkeeping, the constant information of debit with credit. If you want to be a really successful entrepreneur, you have to constantly analyse the expenses. It should not be that you do not know where you have lost or where the money has disappeared.
In your business plan you must prescribe separately all possible expenses, planned, fixed, unforeseen, hidden, sunk and so on. No matter how strange it may seem to you, but you should calculate the size wages for yourself it is desirable that it be fixed. This will help you not to take uncontrolled money that was meant for running your business.
If you don’t know how to do it yourself, hire someone to do it for you and for you. You can also download a special accounting programme that calculates itself, you just have to enter your income and expenses. Out of such moments consists a full-fledged business – wholesale that anyone can start.
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Another important point
While you alone are thinking of starting a wholesale business, there are entire companies and distribution networks doing the same thing, only as a team. Therefore, think about what can increase your chances in the sales market, you may have a better chance if you offer a wider selection for the convenience of the customers. In fact, this way, when presenting your product, you can focus on saving both money and time for the customer by offering them not one product but a whole group. It is convenient if you arrange deliveries to a specific shop or company in advance.
In this case, you are faced with the question of storage, transport, insurance, product documentation – all of which affect the end result and whether the customer will want to work with you in the future. With all this, you need to maintain cost optimisation in order to stay focused on the main goals in the business. It may even be cheaper for you to hire professional services from a logistics company, especially as they offer a whole range of services in different business areas.
Find out about current customer purchase prices and other delivery terms. It does not matter that you are approaching clients without the intention of entering into a contract. Now you are doing reconnaissance. You can introduce yourself as a representative of a new company that wants to supply this region. Ask what the customers don’t like. Be sure to collect some information. Some ask to bring the price list and say nothing. Make sure you communicate with the head of the company. Say what you can give good terms, but it is necessary to estimate the approximate volumes.
Find suppliers, calculate margin and evaluate. Based on the information gathered, you can roughly estimate the purchasing volume. This is needed for negotiations with suppliers. You need to get better conditions from them even though you are still in preliminary negotiations.
Make an offer to customers. After the 2nd step you know on which ones they are working with other suppliers. Make a package of commercial offers that will make you stand out from the rest. Take advantage of your competitors’ weaknesses. If potential customers have complained about delivery times, you can focus on the quality of this service. It will not be easy for competitors to restructure the work.
How to work with wholesale
From the point of view of stable demand and stability of business relationships, B2B business has an undeniable advantage. Established connections and well-rehearsed distribution channels enable wholesale suppliers to stay afloat even in times of crisis and stagnation.
If you decide to organise a wholesale business, first choose a niche in which you will work. It is good if you have an idea in advance of how a standard business process is set up in the chosen area. This will make it easier to enter the market. If not, first study how everyone in the sales chain is connected. A detailed study can take a long time. However, it is difficult to overestimate its necessity. On the basis of its results, you not only represent the wholesale trade from the inside, but you can also soberly assess your strengths and, if necessary, discard the chosen idea.
When confidence outweighs all counter-arguments, it’s on to finding suitable premises, negotiating with suppliers and officially registering your chosen activity. There are many nuances and smaller tasks in each of these issues. For example, the premises should not only serve trade, but also meet the requirements of the regulatory authorities. In addition, certain to have technical specifications and convenient location. Searching, selecting and negotiating with suppliers, registering with the IFTS are also quite extensive issues. Ideally, it is best to do everything at the same time. This way you can save time and money.
When the most important issues are settled, the lease is finalised, to ship the products, to deal with the search for sales. Strictly speaking, sales had to be sought even before the first step was taken. After all, if there is a guaranteed demand for a product, setting up the rest of the business process is not that difficult. There are many ways to find customers, and most of them depend on your chosen trading niche. In general, you should try to meet purchasing decision-makers for large companies. It is difficult, but quite realistic, to build an entire business on several large clients. You may also find non-standard ways to enter the market. And never stop looking for new distribution channels. Total turnover is much more dependent on profit earned than in other businesses.
Wholesale is a type of transaction when the goods for the funds, is not passed on to the final consumer. It is for resale. As a rule, whole lots of goods – large or small – are the subject of buying and selling.
Think about what kind of wholesaling you want to do. In doing so, gather as much information as possible Marketing analysis, identify consumer demand.
Hi. In this article we will talk about increasing sales in wholesale.
Today you will learn:
What is wholesale;
How to increase the volume of wholesale sales;
Is your company’s production volume big enough and you don’t have time to sell products? Then it is time to think about wholesale sales.
Wholesale – a form of trade where one company provides goods in large quantities to another company.
If you decide to hire new people, it’s best to look at retail salespeople with similar specialties. They are already familiar with the product, they know the functions of the sale, they know how to deal with needs.
Competing businesses are an equally successful source of staff. By recruiting several people to your staff, you kill two birds with one stone – you unsettle your competition and gain professional salespeople.
Be careful, however. A competitor’s employee may turn out to be a spy or simply return to the old place over time and take your customer base with him.
When looking for employees, you can turn to companies in related industries. Such candidates will be easier to train than those who have worked with a completely different product.
You cannot look for new employees, but you can train existing ones. There are also various ways with the aim of increasing sales. For example, organise a competition among account managers, according to the results of which you will receive the bestseller of the month.
How to win new customers
Through cold calling. We’ve talked about this before, so we won’t stop there. Let’s just say that when choosing this method, special attention should be paid to the database itself with contacts of potential customers and information about them. Script – a conversation script that your supervisor follows.
A great source of clients – your clients. If you have built a trusting relationship with your customers, then ask them to recommend your company to their partners. This is quite an efficient method.
Look for customers at different events: get to know them, exchange contacts.
Use to attract customers. It will be particularly relevant, and face-to-face selling via the internet or telephone is also relevant.
Mistakes in wholesale optimisation
Mistake 1. A good salesperson generates a high volume of sales.
There aren’t that many really good salespeople, so there won’t be enough of them to go around. Also, it is very difficult to determine the level of professionalism of each employee. So if you rely only on your staff, you are unlikely to get good results.
Mistake 2. Expanding the product range leads to an increase in sales.
This is the misconception of most entrepreneurs. Introducing new product categories can reduce profits, especially if the new product has nothing to do with the main product.
Example. A few years ago, the Bis company introduced solid perfumes in its product range, the flacons of which resembled a lighter in shape. However, the project turned out to be unprofitable and soon the perfume lighters were discontinued.
No it won’t. It is necessary to advertise the product, but in moderation. Excessive advertising not only hurts your wallet but also annoys potential consumers. It is better not to advertise a lot, but qualitatively, i.e. personalise your messages, choose the right communication channels.
Mistake 4. Reduce the price and sales will increase.
This is not always the case. The wholesale business is characterised by large purchase volumes, which increases the consumer’s buying risk. If your price is below the market average, the customer may suspect the low quality of the goods or your dishonesty.
Remember that a price that is too high or too low must always be justified.
For example, if you set a high price, you can show the customer that your product is of very high quality. In the case of a low price, tell the customer that you have your own system that you save on, or that you have several production stages at the same time, or that the raw materials from which the product is made are supplied to you at a high discount due to many years of cooperation with the supplier.