Good Morning AdvisorNet community! A Veteran was wondering if anyone has advice for a small business on acquiring wholesale customers instead of retail customers?
Answers
I agree with the above, but customer service is still king. I there is a way to meet or beat the competitors on a regional or local basis, customer service will assist. Check with your local Chamber of Commerce, they have connections to the SBA and all other types of assistance. You still eligible to attend and Boots to Business workshop? Thanks for your service and God Bless.
Hi Eric,
Congratulations to this veteran for his/her entrepreneurial spirit and new business start-up.
What product(s) is he/she marketing? What is the current distribution channel?
Thanks for your service. Best Regards, Rich Gauger
https://www.linkedin.com/in/richard-gauger-94756011
https://chesterdelco.score.org/mentors/richard-gauger
The advice that John has given is very solid. The only real edge a wholesale account can give to the consumer today is something that is special, not a commodity and not readily available via the on line presence or other retailers that are brick and mortar. The traditional retailers are struggling trying to find product that makes them special , gives the consumer a reason to go to their store and also affords more flexibility with markups. If the veteran has special product that would have limited distribution , perhaps there is an avenue. Otherwise, the vertical retailers that go direct from factory to selling floor , plus on line business makes wholesale a treacherous environment today.
What is the product being offered ?
Most wholesalers are going out of business when thinking about retail products because they are being displaced by mega-online-tailers (Amazon, Walmart, etc) which take products from manufacturer and market direct to public (retail) without paying the markups typical wholesalers would charge.
The role of a legacy wholesaler is to manage volumes not typical of retailers. Just look at the news stories of late concerning Macy's, and other mall anchors, which have suffered greatly by the ability of discount online retailers to sell directly to the public. This disrupts the whole legacy supply chain in that when the malls close down, so do those wholesalers that supply those malls.
In my opinion, the person asking the question is asking it backwards, rather, the question should state : "How do I market products directly to consumers rather than wholesalers?" The answer is to market directly through Amazon or Jet. Those marketplaces drive volume, which seems the likely motivation behind the original question (ie. how do I make more money by selling lots of goods?) The legacy wholesaler supply chain element is quickly disappearing.
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