The Art Of Selling Wholesale Products To Retailers

The Art Of Selling Wholesale Products To Retailers


Wholesalers and retailers are involved in the sale of products. You're probably thinking: ’Doesn’t that make them the same thing?’ The answer is simple, it doesn’t. To understand this, you will need to look at the process of selling wholesale products to retailers; what exactly is involved and how can you ensure that the whole process runs smoothly?

The Retailer And The Wholesaler

So, to start, what do these terms refer to?Selling wholesale products involves the distribution of goods. The company will take the merchandise from the producer, and sell it to their customer.In this case, the customer is the retailer. They sell the goods to consumers, with the objective of earning a substantial profit. So the wholesaler is the ‘middle’ man between the producer and the retailer.The difference between the two is the quantity; a ‘wholesaler’ sells large quantities of products while the ‘retailer’ sells them in small quantities, at a higher price.selling wholesale products at low prices

Courtesy: Airsquare

Selling Wholesale Products to Retailers

If you are setting up a wholesale company, there are a number of things to consider in order to attract the attention of your ‘customer’. Here are a list of things in mind when selling wholesale products to the retailer. 

1. Pricing Your Merchandise

As a wholesaler, you’ll want to make a profit. This means selling the products to the retailer for more what you spent when buying it from the producer. There is a lot of mathematics involved, but you need to charge enough that you make a profit without cutting into the retailers profit margin.So, when pricing your merchandise:

  • Make a list of the costs involved in production.
  • Times it by approximately 2.5. This will tell you how much to charge the retailer.
  • Calculate the suggested ‘retail’ price, to give your customer an idea of their profit margin.
  • If a retailer would like to buy products in bulk, consider giving them a small discount.

2. What Do I Do About Taxes?

The tax laws will usually vary depending on your country, and state. But it’s uncommon for the wholesaler to charge taxes of their retailer’s order.You will need to keep a hold of their tax identification documents, as well as their reseller’s license!

3. Work Out How Your Retailer is, and How They Like to Buy Their Stock!

When selling your products to a retailer, you’ll want to consider:

  • The industry you are involved in.
  • The retailers buying strategy.
  • Their demand- i.e. how much merchandise they want, and how regularly they want it.

These factors will impact your profit and your sale strategy, how frequently you approach the producer, how much of a discount you can afford to give, and so on.

4. Standing Out in the Crowd

Your businesses may be slow in the beginning. Retailers will need to have confidence in your abilities to contract your services. To build your business:

  • Ask for reviews, to show potential customers.
  • Offer free samples of your products.
  • Start with a few strategic discounts, to attract attention.
  • Have strict guidelines and policies- you need to show a level of professionalism. Your customers will be much more comfortable if they know exactly what they are getting themselves into.

5. Stay Ahead

Remember as the ‘middle man’, you will need to sell products that are in demand. Retailers need to sell their goods that means buying products that their consumers want! So, stay ahead. Keep an eye on the trends, and be ready to make adjustments where needed. Try to keep an eye on your competition, and find ways to gain an advantage over them. At the end of the day, you need to make retailer come to you, not give them an excuse to go to your competition!It’s important to remember that you won’t get it right every time, rejection is part of the game. Like any business endeavor, this one demands perseverance.

Dropee Supplier: Ezy Pzy Enterpries

Dropee Supplier: Ezy Pzy Enterpries

The Guide To Sourcing Goods For Small Businesses

The Guide To Sourcing Goods For Small Businesses