It can be very difficult to be successful in retail if you are a small business, namely because you have to compete with large corporations that can offer customers more selection and better pricing. However, if you buy your products from wholesale companies instead of manufacturers, you may be able to offer competitively priced goods and get people in your door. If you are going to do business with wholesalers, here are five things you should know.
You Need Space
Unless you have a warehouse to store your products, you may not be able to enjoy the benefits of buying from wholesalers. Wholesale businesses usually sell their products in lots, which allows you to buy and sell products at lower prices and still make a profit from them. However, if you do not have warehouse space, you could end up stacking shipments on the floor of your store, which can make your establishment seem cluttered and unprofessional.
Be Selective
Although it can be difficult to find wholesalers who will sell to small businesses, they are out there. However, you will want to carefully research the companies from whom you are planning to buy products. Some wholesalers buy surplus merchandise, which is no longer made by the manufacturer or is possibly damaged freight that does not work. You can click here for an extensive list of wholesalers.
Import Small Items
If you are thinking about importing from wholesalers for your store, research what you will pay for those items versus how much you can profit from them. Buying lighter, smaller goods is usually the best way to go because you will pay a freight charge on imported goods. Whether the goods are trucked in from Italy or shipped overseas from China, there will be a charge for freight attached to them, and if you’re not careful, you could pay more in freight fees than you would make from selling those products.
Avoid Designer Labels
When selecting goods to sell in your store from wholesalers, especially those located in China, avoid anything that claims to be from a designer label. If it is from an Asian country, it is more than likely to be a knock-off. If you want to sell Gucci shoes or Louis Vuitton handbags, buy them direct from the manufacturer so you are not selling your customers inferior goods.
Know Your Customer
You have to know who your target customers are if you are going into any business, especially if you are opening a retail store. Knowing your customers will help you find the right wholesaler to supply the type of goods that you want to sell. If your target market is primarily composed of homeowners, then you can select home improvement products for your store, or if your target market is children, then you should find wholesalers that specialise in selling toys.
It is important to consider the type and amount of brands of each product you want to sell in your store before shopping for wholesale suppliers.