A wholesaler is merely one who gets the product in from the producer or manufacturer and gets them into other businesses. When you run a store front facing company or even an e-commerce store, you will need to bring a good wholesaler on-board!
Finding the right wholesales agent for you can be a tricky ordeal, as they act as the hinge that gets things moving along; a rusty hinge and a one not so well oiled can give you a world of pain and losses. You will need to find such a wholesale distributor that is:
- Trustworthy and reliable to work alongside with
- Has thorough knowledge and expertise over the geographic where you wish to do business in
- Links you with the manufacturers that you need
- Charges the cost that you can actually foot.
These could be wholesale distribution companies or solo wholesale distributors.
Here are the things you need to do to ensure that you understand your own need first.
Understand The Distribution Channels Prevalent In Your Industry
The way in which the product moves from the manufacturer to the retailer varies from industry to industry. Understand the distribution channel to zero in on the wholesale supplier who will be best suited for the job. The main 4 distribution channels in play include:
- Manufacturer: You can directly buy from the manufacturers and cut out all of the ‘middle men’ out.
- Importer Distributor: A company might be the only one with the right to import it into a certain country. Some of them sell to retailers while others to smaller local wholesellers.
- Regional Wholesaler: These take a much bigger bulk, split it up and sell to small wholesellers.
- Jobbers: They make deliveries to local stores and supermarkets.
As you start, you may only have links to smaller wholesaler. The minute your business grows and you require much larger bulk and volume of goods; you will steadily move up to larger wholesalers who will give you better rates.
Give The Manufacturers A Call First
If you have the opportunity to not include a wholesaler into the equation, then better. Paying the wholesaler will easily cut into your profits. They may have a minimum order size that you may have to discuss with them. If you are still not large enough, then simply get in touch with the manufacturers and ask them to tell you the reputable distributors that they have contacts with.
Take the time to study and research the right wholesaler, as finding the best distribution companies can make running your business a back breaking ordeal, or a breeze!