Your brand is ready for the next step in the sales process, wholesale. Wholesalers are a great way to sell your product at a lower cost to businesses so they can deal with the customer for you. It's a great way to move large numbers of units and expand your brand to new markets you may not be able to reach yet.
Yet a major question arises. How do I start? When you start learning to swim you don't jump into the olympics you need to start with learning to tread. The same goes for wholesale. You need to first understand your pricing the way your competitors are selling and how your full operation will work on a larger scale.
Let's break down the onital questions you need to answer when moving into wholesale.
Is wholesaling right for my business?
Not all retail businesses will translate to a wholesale business, and it’s important to assess whether it’s a good strategy for you.
How much will you charge for your products:
Wholesale Price = Total Cost Price + Profit Margin. The most common way to calculate your wholesale price is by simply dividing your retail price by half. But make sure to analyze your competition to see if your pricing meets the market needs.
Will you have tier pricing?
Tier pricing allows you to offer different discounts to different venders according to their order size.
Do you plan on selling by the case size or custom sizing?
Shipping by the case allows you to mainstream your product shipping. This also will help you understand the minimum quantity you a customer will need to buy.
How will you ship your products?
If you're planning to ship outside your country how will that work? How will you ship in general? Will you have a truck or will you ship by box or pallet?
How will you start finding customers?
This question is the most important of them all at the end of the day. If you don't have sales what's the point of all the other work?
There's a lot to consider when it comes to which marketplace to start with and with so many how do you know where to start? What I've done is I've taken my favorite wholesale channels and in the coming weeks we'll go over each one giving you tips and tricks to fast charge your sales.
In the meantime if you need any help expanding your brand send me a message.
Follow Addicted Seller Central to learn about each wholesale channel.