How to open a wholesale company

Wholesale trade requires considerable investment, serious competition and thoughtful logistics. However, the income from a wholesale company with the correct construction of a business can exceed all your expectations.

You will need

• - start-up capital;

• - warehouse;

• - transport;

• - the Internet.

Instruction manual

1

Do market research in your area. Identify major players in the area that you have chosen to trade. Observe the distinctive features of your company that can become a competitive advantage. This may be a lower price, a deferred payment, favorable delivery conditions, high-quality work with small cities of the region.

2

The key point in organizing a wholesale company is the debugging of warehouse logistics. Find a room that meets all the requirements of your business and the specifics of the goods. When choosing, you should take into account the availability of warehouse equipment, the convenience of location, the presence of access and railway tracks, the conditions for keeping warehouses in the cold season, sewers, and security.

3

Enter into contracts with manufacturers of goods from which you will purchase products. Specify delivery terms in detail: terms, packaging, assortment. Create an annual procurement plan, as it takes time to produce goods. Specify the conditions for acceptance of goods and return in case of marriage.

4

Get the necessary equipment. To work inside the warehouse you will need at least one forklift and a trolley. Depending on the type of product, you can facilitate the work with the help of specialized warehouse equipment: rigging systems, stackers, lifts. If you plan to deliver products to customers, consider buying freight vehicles.

5

Post information about your company in all city business directories, electronic maps, thematic sites. Investments in large-scale advertising (banners, television) depend only on your budget. However, at the initial stage, you should take care of the necessary informing potential customers with less costly methods.

6

Create your company’s website combined with the functions of an online store. So you can go to other regions and carry out larger deliveries. To create a wholesale online store, it is not necessary to create an attractive portal interface and spend a lot of money on its support. The main thing is complete information about the available goods and timely updating of stock balances. Make a page using one of the free resources. Conclude an agreement with the transport company. Wholesale deliveries to the regions will bring good income, since in this case the factor of competition with the nearest similar firms is reduced.

note

Small wholesale buyers are extremely sensitive to price fluctuations. Carry out constant price monitoring so as not to be left overboard of your business.

Useful advice

Since warehouse equipment is quite expensive, consider purchasing used equipment. In addition, it is worth considering leasing purchase schemes.