Looking for a wholesale guide to start selling wholesale to retail?
One of the things a regular retailer has to worry about are the following:
- Increasing the sales of your store.
- Bring aspects of the store.
- Product Innovation.
- Design of various aspects of the business.
- Marketing the business.
- And so much more.
So in this article, I’ll show you why choosing to sell wholesale than retail will be a smart business decision for you.
So, if you’re ready for it, let’s get started.
Why Should You Sell Wholesale to Retailers?
The wholesalers’ job is to sell to businesses who will in turn sell those products to their end consumers. Because they have to sell to customers, they order or buy products in bulk. This stacks up their inventory to meet that demand they have from their customers.
Since they order in bulk they have enough inventory to meet both the short-term and medium-term goals of their business. So if a product becomes popular you are sure that they will come back to order more.
So if you switch from wholesale to retail, you will start seeing some more advantages when you’ve got to deal with the end customers.
- Branding won’t be the focus as businesses will want to order your products under white label contract. (Money saved on the front end).
- Because you are selling in bulk, you will able to reach a much higher profit margins.
- If your products are good, you’ll see that the wholesale customers will return to make purchases (if you sell them at great prices).
- Since you’re in control, you can get to negotiate payment terms plus you have the option to work with customers on a one-on-one basis.
- Retail business will cost you a lot. Meaning more overload cost.
Just by switching to retail, you will not see a lot of sales every month but you’ll see sales happen in larger quantities. Now you’ll be dealing with fewer customers which means you can focus more time on giving them a great experience and dealing with your business.
How Should You Start A Wholesale Business?
First and foremost you need to understand that you will not be able to start a wholesale business if you don’t have any products.
If you have an e-commerce business you definitely should have a place to store all your inventory or you should know how to source the products for your business.
You need to know that you can’t sell at the retail price so you’ll have to switch.
Now that you have the basics in place, let’s learn all the steps to start a wholesale business.
Step 1: Calculate Wholesale Prices.
Here’s a guide if you want to learn how to calculate wholesale prices from looking at your retail numbers. Here is a quick summary for you so that you can understand them in just a few points:
- Figure out what other wholesale competitors are charging for the products you’re selling.
- Figure out what customers are saying through customer feedback. This gives you an edge over your competitors.
- If you know the production cost you’ll figure out the minimum price you should charge for your products.
- You can start selling at a price that’s between production cost and retail selling price.
You need to know the wholesale price of your products play an important role in your success. The best way to do that is to either offer your products at a lower price or offer a better quality or be the only provider of some of the products. Scarcity is key to success.
If you hear the word “production costs” you need to take into account the money you spend on souring the products, getting them into the inventory, shipment costs to the retail customers, etc.
So if you are charge your prices below those costs, you will run your business at a loss.
Step 2: Approach Retail Stores & Create A Marketing Plan.
I know switching it up in your business by selling wholesale to your retail customers would be a challenge. As you can already see that other businesses have relationships with suppliers so they can get their supplies from them. You won’t get business unless you approach them.
In order to find a great retail business partner you need a wholesale marketing plan. Learn how to do it right.
Here’s also another guide on how to approach retailers when you are a wholesaler.
So let me summarize it for you as there are three ways to approach retailers:
- Doing In-person meetings.
- Appointing Head-office meetings.
- Using Cold emails or mails.
If the retailer is small, if you approach them in person they’d highly appreciate it. So when you approach them you’ll have to do prior research and find out the person in-charge for everything in their business from purchasing, product pitching, assistants that arrange the meetings.
If you even set up a meeting go ahead and discuss the prices and understand the products.
So if you want to set up head-office meetings, you’ll find that they have a large group. They’re all retailers. but what you need to do now is to go and pitch your product to all these people and they’ll decide if they want to stock your products.
If you want to cold email them you need to first create a great first impression, set up a great contact or rapport with the retailers. So in order to find them you’ll need to make a list of all the retailers that want to do business with you and research their contact information.
So go ahead and start collecting all the leads, the more the better. Now after you have their contact details, you will need to send an email that’s personalized, a cold email, then discuss the product and say why or how you’re a good fit for them.
If you don’t get responses don’t worry, some of them will reply to you and at least you’ll get someone to help you work with your store.
Step 3: Launch Your Wholesale Store Finally.
In case you don’t have a place to store the products, you can start selling the products from home. It’s completely possible. Set up your e-commerce store right away and if you use the WooCommerce plugin you’ll be able to grow your store faster than the other businesses.
Below is an example of a WooCommerce store:
Let me talk to you about one more issue that you’ll face with WooCommerce.
They are built just for WooCommerce selling, meaning they’re not geared for handling Wholesale operations.
So if you want to sell wholesale to retailers, you need the Wholesale Suite plugin.
Wholesale Suite comes as a collection of plugins that will take your store to a whole another level.
So if you’re choosing to use Wholesale Suite, you’ll:
- Be able to create your own custom wholesale user roles in the backend.
- Be able to set your own unique wholesale prices for each and every product. (on the backend).
- Be able to create and design the whole wholesale order pages.
- Be able to manage the new user registration as a wholesale client.
Now that you’ve learned how to sell wholesale to retailers, you are ready to launch an online store and you’ll be able to process all the sales and orders in your business.
Just use the wholesale suite plugin and you will be able to work with the retailers and get all the orders you need to run a smooth business.
Now that you’ve learned everything about selling wholesale to retailers you will be able to pull off your business from the ground.
It is a profitable business. Wholesale businesses have a lower overhead cost than a retail business. Also, you wouldn’t need more customers to turn a profit from your store as you’re selling in bulk.
So to recap, here are the 3 steps we discussed in this post:
- Calculate Wholesale Prices.
- Approach Retail Stores and Create a Marketing Plan.
- Launch your wholesale store, Finally.
If you have any questions or feedback, can you let me know in the comments below. Thanks for reading!