How to start a wholesale business
Video: How to Start a Wholesale Business in 2021 2024, July
Wholesale trade is conditionally divided into large and small wholesale. Small wholesalers work directly with retail, delivering goods to stores. Large wholesalers hold warehouses of a different volume and deliver goods to small wholesalers. The scope of activities depends on the initial opportunities.
Instruction manual
1
Make a list of customers who could purchase goods. Before registering a company, you need to find out the size of the market in which you intend to work. Key players should appear on your list. To find them, you will have to find wholesale bases, talk with store employees. Wholesalers often do without advertising, because for years they have been working with a limited circle of regular customers. To find all future customers, think about who they serve and communicate with their customers.
2
Find out current customer purchase prices and other terms of delivery. It doesn’t matter that you come to customers without the intention to conclude a contract. You are currently reconnaissance. You can introduce yourself as a representative of a new company that plans to serve this region. Ask what customers are not comfortable with. Be sure to collect some information. Some ask for a price list and don't say anything. Be sure to communicate with the head of the company. Say that you can give good conditions, but you need to evaluate the approximate volume of purchases.
3
Find suppliers, calculate and evaluate margins. Based on the information collected, you can roughly estimate the volume of purchases. This will be needed for negotiations with suppliers. They need to get better conditions, despite the fact that while you are conducting preliminary negotiations.
4
Put in order the legal component of the activity. When it is clear how the profit is formed, the costs are known, you can register the company and begin work.
5
Make an offer to customers. After the 2nd step, you know the conditions under which they cooperate with other suppliers. Make a package of commercial offers that will stand out from the environment like. Take advantage of the weaknesses of competitors. If potential customers complained about the delivery time, you can focus on the quality of this service. Competitors will not be easy to restructure work.
