At Edistera, we have been making constant improvements to our Retailer Ordering App with user feedback. Over time, we found out many things that can be useful to the wholesalers selling to retailers. So, here we are with this blog to help you grow your wholesale business.
If you are not already using a retailer mobile app for your wholesale business, let us brief you. The mobile app basically helps in targeting ‘always-on-the-go’ retailers, which gives flexibility and better control on orders from your buyers. Also, retailers can place their orders 24/7 while staying updated in real-time about the ongoing promotions, offers, etc. Know the benefits in detail here: 5 Advantages of Mobile App Ordering
Let’s now focus on how to sell products to retailers.
If you are confused about deciding the price, one tip is: Most wholesalers price their products as 2.5 times of the production cost. So, as a wholesaler, your cost must be half of what the end-user will pay, assuming the retailer will price the product 2 times of what she/he will buy from you. Suggesting a retail price to your retailers will also give assurance that you are charging reasonable.
Some of you might also need to add other costs such as marketing, freight, taxes, etc. Also, you might have to think of a minimum amount of order for your retailers, so that you don’t lose money on the logistics of small packages and achieve sales goals. However, first order can have no rules for the size of the package to build a relationship of trust with the retailer. With the size of the order, the price may vary, as mass production and selling might save you some costs. These are just a few examples to help you think and find out the right price for your product.
First of all, you must know exactly who is the end-user of your product. Secondly, where this end user will go to shop for your product. Third, you need to figure out the locations where you can conveniently start selling your product. Technology may of course help you find out most of these answers, but you might also have to go out in the field to experience how things really are. For example, visit a store and envision where your products will be placed, check out the competition, measure the required shelf-space, etc.
This is the most important part of selling as a wholesaler right now, as sales are being disrupted by technology. Retailers are getting lured by wholesalers with their fancy retailer mobile app and B2B ordering software. Market is gradually shifting in the direction of technology. It doesn’t matter how a wholesaler/manufacturer/brand maintains their relationship with the buyers, technological advancements might cause a breakup sooner or later. Yes, the market is turning volatile and more difficult times are ahead if your business is not ahead of everyone else in terms of technology. History is the proof that we humans tend to tilt toward comfort and technology provides that very comfort.
So, in order to stay on the top of the game, you need your own custom branded retailer app. Why?
So much convenience, comfort, and transparency will keep them loyal to you. We know that there is just one thing that might stop you from going ahead in terms of technology, which is: What will happen to the sales reps? So, here is the answer: How B2B e-Commerce and Sales Reps can Work Together
If the end-user doesn’t buy your product, no matter how good your retailer app is, no retailer would like to invest in your stock. Building your brand and marketing directly to consumers is extremely important.
Rejection is part of learning how to wholesale. Your product won’t be the right fit for every retailer you approach, and that’s okay. It may take a while before you get your first big order. Prepare yourself for this as you set out into the field.
A rejection might have to do with any number of things outside your product. The store might be going in a different direction, or they may be overstocked and not looking to add new lines. Perhaps the store itself isn’t doing well, or they have strict buying guidelines.
If you’ve made a big sale, good for you! But it doesn’t stop there. You always want to keep your eyes on the horizon and stay abreast of industry changes. Go online and check out your competition. Read reviews about related products. Attend trade shows, webinars and conferences about your industry. Staying “in the know” will give you a competitive edge and drive creativity. Staying up to date on trends keeps your business growing. We are constantly working on making the B2B e-Commerce experience better for everyone. If you have any questions, please connect with us, we would love to have a chat with you.