Wholesale business involves the purchase of goods in large batches from a manufacturer or supplier at a lower cost and their further sale in small batches with a markup. A wholesale business is profitable if it is properly organized: then it allows you to make money quickly. We give instructions on how to run it in six steps.
Choose a niche and products to sell
Decide on the industry in which you want to run a wholesale business. Study the field and experience of other wholesalers, analyze the specifics of their work. Find products that are in demand in your area.
For example, let's say you live in a city that is popular with tourists. You can choose souvenirs for sale. Or there are many manufacturing enterprises in your region, then you can start selling workwear. Analyze whether the market is overflowing with such products. Identify competitors. Think about whether it will be cheaper to buy goods from local manufacturers or it is better to import them from other regions or even import them.
Choose products that are in high demand, regardless of the season. If you're having a hard time deciding, brainstorm with your team or use the services of a marketer.
Answer the following questions:
1. What products do retail stores buy from local wholesalers? This will allow you to gauge supply and demand and find potential customers.
2. What are the pros and cons of such products? How much money will be required for its purchase, storage and transportation? Are they perishable goods or can they be stored for a long time? What is the purchase price, and how expensive will the products be sold?
At the initial stage, you should not buy perishable products until you have a prior agreement with buyers. Otherwise, the products will spoil, you will spend money on storage and will not be able to sell the goods. Also, pay attention to the organization of logistics. Give preference to products that are easy to transport. So, for some categories of goods (electronics, dishes, faience plumbing) there are risks during transportation and additional costs for packaging goods will be required.
Find Manufacturers
Don't give up searching on the Internet. This method is simple but effective. It will help you study the market in advance. But don't be satisfied with the information you find: be sure to call the manufacturers to get more information about the products.
Track information on competitors' websites. Sometimes they sell off surplus goods or sell products for a percentage of profits. Also, view the packaging of competitors' products. It contains information about the supplier.
Find a warehouse
The area of the premises should be enough to quickly find and ship the necessary goods. The warehouse must be equipped with the necessary equipment, such as refrigeration units and freezers for storing food products. The premises must be within good transport accessibility from suppliers and buyers.
Buy or rent a truck
For the first time, you can rent or lease a vehicle. This will allow you to test different cars and evaluate their performance. You can also hire drivers with a private car. As soon as the business starts to grow, think about buying your own truck.
Hire Staff
The face of your company is a sales representative. He should be active, friendly, communicative and responsible. The positioning of your company in the market depends on the work of a sales representative. Therefore, the choice of a candidate should be approached with all attention.
You can hire a specialist who has experience in your field and has the right contacts. But first, gather feedback about it and focus on it. You will also need drivers, freight forwarders, an accountant, a warehouse manager. Hire qualified staff, then you don't have to spend a lot of time supervising the team.
Organize the sale of goods
Make a database of potential partners, call them and offer to buy a test batch of goods. Also, your sales representative can personally go to the stores and ask for the contacts of the employees responsible for purchasing.
Look on the bulletin boards for stores that could potentially become your customers. Gather their contacts, then call or text them.
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