home Success stories What do you need to become a supplier of goods? Personal experience of a buyer: tricks of selling your goods to retail chains

What do you need to become a supplier of goods? Personal experience of a buyer: tricks of selling your goods to retail chains

My brother had been distributing books for a long time and decided to try himself in his own business - he began accepting orders for binding finished book editions in expensive leather. When he was about to start supplying these gift books to stores, he needed to register a company - my brother contacted me (at that moment I had registered a legal entity), and we started a joint business.

In this article you will read:

How to become a supplier and reliable partner to companies

How to ensure uninterrupted work between the supplier and contractors

How to become a supplier store and ensure reliable operation of the supplier and the contractor is known to varying degrees by every businessman. However, the key to these relationships is partnership and trust, which can prolong cooperation for many years. To achieve this, we had to hit a lot of bumps.

When we first decided to become suppliers to the store, at first people didn’t even want to do business with us - we, like children, ran around with bags. Then we worked with only two stores, the sales volume was very modest - about ten books a month. We had the impression that we had started all this in vain; no one needed such books at all. However, then regular customers appeared who came and asked specifically for our books - perhaps because they were very different from the classic offers of competitors (we had colored leather bindings, illustrated plates). Be that as it may, sales gradually began to grow, and our work as a supplier with contractors began to improve. We divided the responsibilities. My brother started setting up production, constantly trying different materials, and I started looking for clients and building relationships with them. And our office was my apartment.

Search for partners

Understanding who exactly our client was did not come immediately. We used to think of it as a retail buyer - someone who is the end consumer and buys leather-bound books.

But in order for retail clients to contact you, you need to promote a certain resource that provides an incoming flow of orders - an online store and a retail network where consumers come. It takes effort and time. We do the same job, but 28 times faster. Why at 28? Because our books are now sold in 28 stores - they are looking for the final consumer. Having found one store, you find dozens of customers at once. And if we looked for them one by one, we would spend tens of times more time.

Promotion on social networks: how to assess prospects for a company

Now our partners include the best stores in Moscow. How did we achieve this? I can say that the main thing is not just to find a client (I saw the store, met, agreed, offered, agreed), but to work with him for as long as possible. To do this, you need to initially understand how interesting we can be to each other, actively cooperate and help our partner: call, stimulate, offer a layout of books or a replacement assortment, talk personally with sellers, receive feedback.

Price policy

Now our company has adopted the practice of retail sales, but only if long-time customers themselves contact us directly. And yes, they can come to our office to buy a book, but we try not to sell at retail anymore, so as not to create competition for our most important clients - bookstores. Because it is they, real and on the Internet, who have become our most effective partners.

It is very important not to harm the interests of your partner with your actions. That is why there are no prices on our website. If customers call us directly, we sell them books at retail price. Although, of course, at first there was an idea to sell wholesale in order to increase sales volume, we rejected this scenario: it would be dishonest towards our counterparties and would cast doubt on the possibility of successful long-term cooperation.

New opportunities

George Washington once said, “Every problem is success in disguise.” We just had such an example of a supplier working with contractors. The fact is that now we are binding books without formalizing legal relations with their publishers, without violating their rights: we bought these books, we do not change the text, we do not assign authorship to ourselves. But one day we received a complaint from one of the publishing houses in connection with the sale of his books in our bindings in the Moscow book chain.

Our books were removed from the store, but the publishers thus lost some of the sales in the store, and now they no longer oppose our products on the shelves. The next stage, I think, will be the signing of an agreement between us on the binding of books and their unhindered distribution. This incident gave us the idea that similar agreements could be signed with other publishing houses. And just the other day we received such an offer of cooperation.

Competitors

The issue of competition on the retail shelf remains extremely important for us, because our market is very narrow. Book networks can be counted on the fingers of one hand (our main partner networks are “Moscow House of Books”, “Biblio-Globus” and the book trading house “Moscow”). And our premium product is not bread or chewing gum, which are sold in tons every day.

Of course, the exclusivity and high quality of our offer are of great importance for the supplier’s work with contractors. Many competitors work to order and at prices significantly lower than ours, as they minimize their costs, including through the use of lower quality materials. The difference in the price of finished products really turns out to be very noticeable - several times, or even an order of magnitude.

To find out our competitors and their sales volume, we conducted a survey of partners. It turned out that we are among the top three in sales and we have two main competitors. But we are consistently ahead of them in terms of service quality. Due to what? Our trump cards are prompt response, availability of inventory and a wide range. After all, if a book is sold, it is very important for the store that it be delivered immediately, because these publications are presented in a single copy, they are not delivered in packs. And we pay serious attention to this issue - and as a result, we deliver books the fastest.

What kind of system do we have? Our partners have websites where sold books are displayed for us in the supplier’s “Personal Account”. Every morning we check sales. Stores that do not have sales notification systems have to call themselves, since weekly reports are most often not enough for a prompt response: it is not known which publications have been sold and which ones need to be delivered to the point.

Each employee of our company can cope with any problem that arises independently. We also try to quickly resolve various paper issues - concluding contracts and dealing with accounting, since delay in these matters does not have a very good effect on partnerships, including sales.

Our website is designed in such a way that clients save their time: we take high-quality photographs ourselves in photo studios, on our resource you can download and fill out an agreement, view the price list, and subscribe to notifications about new products.

We welcome you, dear users and visitors of the business magazine “site”! The topic of today’s publication is “Business with China.” We will tell you where to start, how to find and establish optimal mutually beneficial cooperation with partners (intermediaries), and also provide a list of popular Chinese trading platforms where you can purchase goods from China in bulk and consider the possibility of reselling goods without investment.

From the article you will learn:

Is it possible to start a business with China without initial capital?
Why choosing Chinese partners is beneficial for Russian entrepreneurs;
Step-by-step recommendations for organizing a business;
Advantages and disadvantages of the largest Chinese trading platforms (Aliexpress, Alibaba and others);
In-demand products from China that can make a lot of money.

More and more Russian and other entrepreneurs are turning their attention to China to make their activities more reliable, profitable and competitive.

Huge assortment manufactured products, as well as low prices with quality improving everywhere, they leave no choice for beginning and experienced entrepreneurs when identifying partners for cooperation.

After reading this article, businessmen of different levels will be able to familiarize themselves with the “rules of the game” in this market, even a beginner without initial capital, after reading the article to the end, will find an opportunity to earn money in cooperation with partners from China.

How and where to start your business with China, what are the advantages and benefits of a business reselling goods from China, is it possible to open a business without investment, and so on, read the article below

1. Business with China - is it possible to start a business with goods from China from scratch 📈

Products made in China occupy one of the leading positions in terms of sales and popularity in global markets. And if several decades ago Chinese products were introduced only in the niche of budget products Low quality , then at the moment the range has been expanded up to up to elite samples with the highest consumer properties.

Competitive prices, as well as a huge selection of various products provide entrepreneurs with wide opportunities to earn good money.

The process of interaction with China is not complicated, and every businessman with fundamental knowledge and entrepreneurial experience can successfully work in this market without an initial investment (or with minor investments).

General scheme of work with China:

searching for a cheap suitable product;
delivery to Russia;
selling and making a profit.

At the same time, many beginning entrepreneurs causes unnecessary anxiety customs clearance, product certification, taxation And a number of other related factors. However, having studied all the necessary information, businessmen should not have any difficulties when interacting with Chinese manufacturers and intermediaries.

☑ Delivery, customs clearance and certification of goods can also be entrusted to a third party.

Trade - the best option for starting a career in business, and having companies as partners that will help supply affordable and in-demand goods to Russia, provides unlimited opportunities for earning money and developing your business.

Business from scratch in this segment is very limited and involves the resale of goods through a dropshipping system. Read about this and much more further in the article.

2. Advantages and benefits of doing business with Chinese manufacturers 📑

In recent decades, there has been a trend of increasing attention of the Russian business community to the Chinese manufacturing market. Manufactured in this Asian country the entire list of goods necessary for a person to live.

Advantages and benefits of cooperation with Chinese manufacturers

For years, the stereotype formed by the average resident of the country that Chinese goods are of low quality is gradually being eliminated. An increasing number of buyers find themselves satisfied with the quality of products from China, with constant low price compared to competitors.

Even in the traditionally competitive high-tech market, where “they rule the roost” Western European, North American, South Korean and Japanese manufacturers, Chinese companies managed to occupy a significant market share. At the same time, the quality of manufactured goods is increasing.

The development of modern means of communication and technology will allow entrepreneurs to significantly reduce the initial costs of cooperation with Chinese manufacturers or intermediaries.

It is also worth noting that enterprises from China trade with countries around the world and constantly introduce new products to the market and use innovative ideas. By carefully studying the demand among the population and supply from China, the entrepreneur has the opportunity to be the first to introduce new products to the Russian market, which will significantly maximize profits.

The main advantages of doing business with China

The attractiveness of partnerships with Chinese manufacturers and intermediaries is determined by a number of factors:

Large range of products. China's share in most economic sectors is from 40% and more in relation to global production. This determines a significant variety of products.
Low prices. One of the main factors in the competitiveness of the Chinese economy. The low cost of goods is due to: relatively inexpensive labor, the presence in the country of virtually all types of necessary raw materials, the presence of a large number of production facilities for various components, as well as significant competition among enterprises. All this allows entrepreneur, supplying and selling goods from China, set the price for the goods at a profit up to 1000% and at the same time leaving the cost attractive for the buyer.
Purchasing an exclusive product. In the process of studying the specifics of the Chinese market, as well as with significant volumes of supplies, manufacturers of exclusive products that have significant demand, but are poorly represented in retail trade, may be interested in cooperation with a Russian company.
The desire of Chinese partners to cooperate. Great competition and price wars among Chinese manufacturers and intermediaries force them to be attentive to the needs of customers: start cooperation with small volumes of goods, provide discounts on samples, provide convenient conditions for the delivery of goods and other preferences.

Let's look at the main benefits of doing business with China:

First of all the consumer wants to receive the product as quickly as possible, as well as evaluate its appearance and quality. When purchasing goods to order in Chinese online stores, the buyer cannot take advantage of these advantages and many customers find it more convenient to buy goods from Russian sellers.
The second factor is a large number of Internet sites and products. It is difficult for the buyer to navigate and purchase the required quality product. To do this, you need to evaluate the professional qualities of the seller, take into account the cost and delivery time, and for this you need to have certain knowledge and experience. In this regard, a significant part of clients prefer to buy from Russian entrepreneurs.

To check the integrity of the seller, understand the functionality of the trading platform, calculate the cost of delivery and the product itself, knowledge and skills are required.

Many will want to order the necessary goods on a Russian-language website, since there is always the opportunity to call and clarify with the seller all the questions and nuances of purchasing the goods, negotiate the terms of delivery of the order, and so on.

Your own business with China - where and how to start your business with China

3. How to start a business with China - 10 stages of where to start your business 📝

In order to establish business in cooperation with Chinese partners, you should consider 10 simple steps (stages) for successfully launching a business resale of goods from China.

Stage 1. Analysis of the list of business cooperation models

Most Russian entrepreneurs cooperating with Chinese companies use a number of time-tested models of interaction with partners:

Wholesale sales of products;
Sales of products through an online store;
Dropshipping;
Own sales through a retail outlet;
Joint purchases of goods from China.

1. Wholesale sales of products (offline)

By establishing cooperation with Chinese partners, an entrepreneur has the opportunity to sell goods in bulk with significant profitability. The Chinese market provides a large list of various products, and choosing a product that is in demand will not be difficult for an entrepreneur.

The work algorithm includes a number of actions:

Selecting the optimal wholesale supplier;
Searching for retailers and establishing cooperation with them;
The client determines the assortment he needs, makes an advance payment, and the entrepreneur, purchasing the products, ensures delivery.

A businessman who has established supplies from China should not have much difficulty finding partners in Russia.

The only thing that would be advisable is to use additional communication opportunities via the World Wide Web: social media, notice boards, and also take advantage of a very effective way to promote products - contextual advertising.

Question 2. What to sell in an online store and which goods from China can provide maximum profit in the near future?

Many novice entrepreneurs ask themselves when starting a business in China: what to sell and who to sell their goods to?

In the foreseeable future, there are no countries that will be able to compete with China in terms of the range of products offered, as well as in price.

The country's industrial base is constantly grows and develops, constant subsidies help Chinese entrepreneurs improve the quality of their products and optimize costs.

At the same time, a significant level of competition ensures a fairly low price level.

Review of products sold from China

So, which Chinese goods can provide an entrepreneur with a high level of income?

1. Shoes and clothing

Products in this category are relevant at the moment and will always be in demand. In Russia, as in most countries of the world, for a significant part of the population the main factor when purchasing is price, and then everything else.

The cost of shoes and clothing from the Celestial Empire is lower than that of competitors with constantly improving quality and a large assortment of offers.

Another factor in the popularity of Chinese clothing and shoes is counterfeits of well-known brands. However, the quality of goods (as well as price) can vary significantly.

Many Russian consumers want to assert themselves by purchasing “ branded"thing for relatively little money.

2. Household appliances and electronics

Russians do not have much confidence in Chinese technology, but again the price factor has an impact and there is significant demand for this category of goods among the population. The purchase price from partners is very low and the entrepreneur has the opportunity to earn good money

3. Perfumery

There have never been famous perfumers in the PRC, but the country is very good at copying fragrances, bringing them to the maximum similarity with the original. At the same time, a similar branded product costs 10-20 times more.

The reaction speed of entrepreneurs in China is very fast: A new branded fragrance appears on the market, and Asian craftsmen are already in full swing creating an analogue.

4. Accessories

Watches, women's and men's bags, wallets, and phone accessories are very popular and best-selling products. Counterfeits in this category of goods are difficult to distinguish from the original. Substitutes for well-known brands are always in great demand among the population and their supplies are very cost-effective.

5. Souvenirs

Most of the souvenir products in the world are of Chinese origin. Tourists and travelers always purchase these products.

Products are made from glass, ceramics, plastic, which allows it to retain its consumer properties for a long time, be stored in warehouses (garages) and sold gradually.

6. Everything for cars

The total number of vehicles in Russia is increasing from year to year, and the cost of car maintenance is also increasing: technical inspection, repair costs, insurance, fuel. And the objective desire of motorists to save on related products is quite understandable.

Sale spare parts, brushes, covers and automotive video and audio equipment will allow the entrepreneur to satisfy demand and provide himself with a significant level of income.

8. Conclusion + video on the topic 🎥

Business in cooperation with manufacturers and suppliers from China with rational organization of work is very profitable, especially thanks to intermediaries with low commissions, ordering goods from China becomes much easier and more convenient. The price difference between goods between the Celestial Empire and Russia can be 500 % and more.

By choosing the right niche and working with reliable suppliers, an entrepreneur has the opportunity to build a stable, profitable business.

Many young and successful entrepreneurs have already launched their startup projects, where a certain part of the business is occupied by goods from China. we wrote in one of our previous issues.

Dear readers of the business magazine “RichPro.ru”, we will be grateful if you share your experience and comments on the topic of publication in the comments below. We wish you good luck and success in business with China!

This article examines the problem of relationships between manufacturers (suppliers) of consumer goods and chain retail (chain supermarkets). How can a manufacturer protect its interests, minimize risks and increase profitability when working with networks? What to oppose to foreign competitors who already have established relationships with global chain retail players?

One of the most painful problems of Russian manufacturers today is the fierce struggle for distribution channels. The role of retailers is becoming so significant that in some regions they are already shaping the market and dictating the rules of the game. For example, in St. Petersburg, which, according to most industry experts, is the leader in the growth rate of large retail, chain retail controls about 45% of the market.

In the future, experts predict an increase in the share of chains in the retail sale of food at the federal level: already now the largest domestic players are taking decisive steps towards building a federal chain of supermarkets. Some analysts predict that the Russian consumer market will become the largest in Europe in 3-4 years; its growth rate is already 16-17%. In addition, there is a real threat from key global retail players who are actively expanding into the Russian market.

What does this mean for domestic producers? Using their dominant position, “networkers” are trying their best not only to dictate their requirements for volume, rhythm and timing of deliveries, but also strive to completely control suppliers. Examples of such behavior on the part of networks include the following actions: unilateral price freezes, the requirement to provide a minimum price in the city, numerous fines, the requirement to make a large fixed contribution to the network deposit, where it must be kept for the entire duration of the contract, and other.

How can a manufacturer protect its interests in such conditions?

To answer this question, we need to analyze the goals of networks and understand the essence of their requirements. The demands of “sales monopolists” are explained by growing competition between networks and the struggle for buyers. They strive to increase profitability per square meter of their retail space (each retailer has a certain rate of return, below which they cannot fall). On the other hand, they are “terrorized” by buyers who want a large assortment, quality and minimum prices (the consumer also develops along with the market and begins to dictate its terms).

Many stores do not have large warehouse areas: goods are displayed directly on the sales floor. This explains the strict requirements for delivery: goods must be ready for sale, in the entire breadth of the range and sometimes in small quantities, but with a high degree of rhythm. Only in this case is it possible to maintain a stable assortment.

It is obvious that retailers are very interested in reliable suppliers with whom they will be comfortable working. Considering the already billion-dollar turnover of networks (in dollars), we can assume that the supplier who has the best organized logistics and accounting of supplied goods will be considered convenient.

Thus, the point of intersection of the interests of the supplier and the retailer is in the best conditions for the delivery of goods, in compliance with all the terms of the trade contract. A hassle-free supplier is a treasure trove for retail. In turn, the buyer gets used to a product of a certain quality, in a certain assortment, which is guaranteed to be available in this store. Agree, if one day you don’t find the product you need on a shelf in a store, but instead there is another one that is still unclear to you, it’s annoying. And many networks are forced to change suppliers in categories precisely because of supply problems.

Russia, from the point of view of ensuring supplies, is generally a historically complex country, and now logistics is a weak link in the chain “manufacturer of goods – final buyer” and lags significantly behind the rapid pace of development of Russian retail. In conditions of fierce competition, the manufacturer simply needs control over logistics, and given the trend towards whitening the market, today it is almost impossible to get good investments and credit without having a transparent structure for getting goods onto the shelves.

There is another argument in favor of the fact that food manufacturers need to pay close attention to organizing their own effective distribution. There is a trend on the part of retailers to purchase directly from manufacturers and a desire to squeeze intermediaries out of the supply chain. The advantages for retailers here are obvious: it is easier to control supplies and the price can be significantly reduced. Therefore, the leader will be the supplier with the best logistics.

To become the best in your category, you must:

deliver goods faster and cheaper than other players in the industry;
offer the best conditions to dealers and retail chains, and work with each individually;
accurately plan and forecast purchases, warehouse space, financial resources;
maintain a wide range and inventory adequate to demand;
maintain a high level of support and service;

To realize this and become the ideal supplier for the local market, you will need a team of talented and passionate people and the will of a leader.

But how can this be achieved within a geographically distributed company with a huge cargo flow? How to manage supply chains nationwide? How to increase turnover while reducing costs?

At first glance, this is a difficult task to accomplish. But on the other hand, this is exactly what the market demands from the manufacturer today, and in order to survive, maintain its market share and at the same time be effective, we need to change. Many competitive advantages today are found in the area of improving management systems.

How can information technology help?

First of all, modern automation tools help organize the coordinated work of all structural divisions, branches and employees of the company, that is, they make business processes transparent and manageable.

What opportunities open up for organizing effective distribution?

Online access to information about all goods in all warehouses and in transit (where, how much, by whom it was ordered, when it will be).
The ability for sales managers to calculate and select various options for delivering goods and the optimal shipping location.
Maintaining balanced inventories at distributed distributor warehouses.
The ability to manage prices and the share of transportation and procurement costs by maintaining transparent accounting of the cost of goods in the supply chain.
The ability to practice individual work with clients (including retail chains): taking into account the individual aspects of working with each, individual pricing and lending. Maintaining a credit history of each client; the ability to set loan amounts individually for each client.
A significant increase in the efficiency of interaction between the distributor and suppliers and clients through a system for exchanging electronic documents with an electronic signature. In particular, integration with information systems of retail chains is possible.
Obtaining current data to forecast demand and purchase future quantities of goods (managers carry out informed planning).
End-to-end staff motivation focused on achieving maximum financial results.
Receipt by the company's management of accurate information online about all aspects of the company's activities necessary for making management decisions, to increase business efficiency and customer loyalty.

But the most important purpose of specialized solutions based on modern information systems is that they are an effective tool for influencing key performance indicators of trading companies. Here are some KPIs that can be effectively influenced:

filling of customer requests;
number of errors when delivering goods;
the amount of logistics costs;
the amount of inventory and their turnover;
the size of accounts receivable and its turnover.

The procedure is simple and convenient

Procurement laws provide for several types of procedures. One of them is the opportunity to conclude a contract through procurement from a single supplier. Such procurement procedures are called non-competitive.
Purchasing from a single supplier is perhaps the most popular among both customers and suppliers. In this case, the contract is concluded bypassing procurement stages such as consideration of applications, auction, summing up. Those. The contract is concluded directly between the seller and the buyer.

Advantages of purchasing from a single supplier
This procedure has undoubted advantages for both parties:

short procurement times
The customer turns to a supplier who can guarantee fulfillment of the contract
It is almost impossible to suspend the validity and signing of a contract
The procedure is simple and convenient
To conclude a contract with a single supplier, the latter does not need to use a large amount of human resources.

Cases of application of procurement from a single supplier under 44 Federal Laws
All cases are described in Part 1 of Article 93 of Article 44 of the federal law. Actually, the law does not oblige the use of this method of procurement. It gives customers this right (with the exception of the case when the announced procurement procedure did not take place), and whether to use it or not is up to the customer to decide. Customers use this right with pleasure, but in this case a contract cannot be concluded for any amount by law. Basically, the purchase amount will be up to one hundred thousand rubles. In some cases, a large amount for purchase is allowed, for example, purchases from a single supplier to provide orphans with everything they need can be made for an amount of up to four hundred thousand rubles. Cases of procurement from a single supplier cover any force majeure situation that requires an urgent solution. The law describes fifty-two points when such a purchase can be carried out. It also indicates which purchases the customer makes a decision on himself, in which he is obliged to inform the controlled body, and in which it must be carried out only with the approval of the control body. At the same time, the one who makes the purchase is forced to purchase goods at the seller’s stated prices without a possible reduction and on his terms; this is a big disadvantage for the buyer, since he is forced to agree with the proposed price without the possibility of a reduction. At the same time, the entire amount of such purchases can reach a maximum of no more than two million rubles per year, or more than five percent of the customer’s total purchase volume, but not more than fifty million rubles.

Purchasing from a single supplier
Since we are considering this type of procurement from suppliers, we will not dwell on all the actions that the customer is required to do, but will focus on the general algorithm.

The customer selects the company with which he enters into a contract and agrees on the terms of purchase and the text of the agreement (contract).
The notice is placed by the buyer in the system (unified information system) and there are still five days left before the contract is signed.
To notify the control body of the purchase, the buyer has one working day left after signing the contract, and should not forget to provide a copy of it justifying the need for the purchase and the price.

All non-competitive procurement methods are under the close supervision of supervisory and regulatory authorities, and this must be taken into account when drawing up documents. There is no algorithm by which to evaluate how legal it is to conclude a contract with a single supplier. Here everything depends on the employees of the control body and on the argumentation of the need for procurement. Since there is increased attention to such procurement methods, correct justification of prices and the need to purchase from a single supplier will greatly simplify life not only for the customer, but also for the supplier.

Purchase from a single supplier under Federal Law 223
Federal Law 223 also has such a concept. Sometimes it is also called direct procurement. The initiative can come from both the customer and the seller. The rules for such procurement under Federal Law 223 are prescribed in the customer’s procurement regulations. In certain cases (this is described in Part 15 of Article 4 of Federal Law 223) such purchases are not entered into the system. You can understand how such a purchase should take place from a specific customer by reading its Procurement Regulations (located on the public procurement website)

How to become the only supplier
So how do you get to purchasing from a single supplier? Let's note the main thing: the customer turns to suppliers with whom he interacts. Or to a company that has no competitors due to the uniqueness of the product offered or service provided. Therefore, if you do not communicate with the customer, the contract with the only supplier will be given to your competitor. If the customer is not satisfied for some reason with the way you fulfill your obligations under other contracts, the purchase will be given to your competitor. Having a defective item in your warehouse greatly increases your chances, since this product can only be purchased from you.
To conclude a contract with a single supplier, the customer must justify the feasibility of this purchase, as well as provide the validity of the price and the method for calculating it. As a rule, the supplier you contacted helps with price justification. He submits a commercial proposal. It is possible that the customer will contact more than one supplier with a request and will choose an offer with a lower price.

Partnership Program of the Regional Center for Legal Security
If a supplier wants to enter into contracts through single source procurement, he first needs to earn a reputation as a conscientious and responsible contractor. Have the resources to quickly and efficiently complete work or quickly deliver goods. Be attentive to the formation of your price in the commercial offer for the customer. Read articles 44FZ and 223FZ regarding this type of procurement. When working with Federal Law 223, you must also study the customer’s Procurement Regulations.
Of course, you can do this yourself. But today more and more attention is paid to purchasing from small and medium-sized businesses, including purchasing from a single supplier. To facilitate this task, special partnership programs are created in which both customers and suppliers participate. The page of one of these programs of the Regional Center for Legal Security is available on our website. By participating in such programs, large customers acquire regular, bona fide suppliers from among small entrepreneurs, and small businesses get the opportunity to become a supplier and full-fledged partner for large corporations. The Regional Center for Legal Security helps with paperwork, and after joining the program, it equips a multifunctional office on the website with complete information for planned (and announced) purchases and tenders of your profile. Program participants are also provided with a personal manager who helps them understand the complex bidding system and search for your specialized auctions. As you know, it is very difficult for small businesses to maintain a tender department staffed by highly qualified specialists. The Partnership Program is designed to help solve this problem and provide small businesses with highly qualified support from specialists in the field of tenders.

The main idea of a wholesale business is purchasing goods in large quantities at one price and selling them in small wholesale with a markup. Alternatively, you can open your own retail store, selling the goods at an even higher price. You can open a wholesale business from scratch, even without having huge capital to purchase the first batch of goods. It can be taken for sale. The scheme for building any business can easily be copied from any existing enterprise.

Main business advantages

The first advantage that entrepreneurs take into account when trying to open a wholesale business from scratch is big money. This advantage is perfectly complemented by a simple and understandable starting scheme, even for beginners. They usually start with small volumes, gradually increasing the scale of the business.

A wholesale business requires specializing in one specific product or niche. This allows you to delve completely into one area, studying it thoroughly and increasing your expertise in it. And the better, the more detailed you understand your business, the easier it is for you to conduct your business more efficiently.

The simplicity of the scheme of any wholesale business allows you to copy any convenient and effective scheme of competitors. You can start a business with minimal investment. Moreover, it does not require significant time investment. Therefore, you can easily start a business while working at your main job.

Deciding on the type of business

Before you start a wholesale business from scratch, you need to decide what type of wholesale enterprise you will have. There are several opportunities to make money from wholesale sales.

Become a large wholesaler. Your task is to purchase large quantities of goods from production and sell them in smaller quantities. Often such entrepreneurs work with several manufacturers, offering a wide range of products.

Become a mid-level wholesaler. These people prefer to open a store selling goods from one specific industry, but specialize in it very well. They may offer one type of product and various accessories for it from different manufacturers.

Highly specialized wholesaler. Usually offers one type of product, for example, only shoes, or only bags. Often works with different manufacturers.

Mediator. It is not necessary to open a store for this activity. It is enough to find a buyer with a specific request, and find a seller for him. Then monitor the progress of the purchase and sale, receiving a percentage of the transaction. The process can also go in the opposite direction: first, a seller is found with the product for which a buyer is being sought.

These are just the most common forms of business organization with which you can start your own wholesale business. If you search, you can find other interesting business schemes on the market.

We are looking for our industry

Before you start your own business, it is advisable to understand what industry you plan to work in and what basic laws work in it. Therefore, it is easiest to open a business in an industry in which you already have some experience. Although, if you wish, you can master other areas of interest.

To decide in which industry to open your wholesale store or base, think about what industry you most often encounter in life, what do you understand the most? This can be either your main job or a hobby. Of course, it is advisable that you like this industry and are sincerely interested in it.

In addition, it is important to understand the following nuances that influence the choice of industry for wholesale activities:

What production does your region specialize in? After all, these are the goods that can be purchased here at the lowest possible prices. At the same time, you will not have problems with delivery and all issues can be resolved as quickly as possible - the manufacturers are, as they say, close by.

Having chosen a product, try to determine the market capacity: what is the demand for it, what is the turnover of the product, average prices for it and other details.

Assess the seasonality of the product. Of course, it is easiest to work with goods that are not subject to seasonal fluctuations. But in other cases, you can find ways to smooth out these differences. It is always better to focus on those goods that are in demand in any economic conditions.

How easy is it to store the product? This question is especially relevant when you are thinking about how to open a wholesale warehouse. If perishable products become the object of your business activity, you need to pay special attention to the warehouse space to ensure the necessary conditions. And these are additional expenses.

How easy is it to transport the goods? This applies not only to the size of the product, but also to its fragility. For example, it is very difficult to deliver glass and porcelain products, as there can be a high percentage of broken goods. This must also be taken into account when calculating the profitability of your business.

How to choose the right product

Before opening a store, you should not only decide on the product, but also test the demand for it. To do this, it is recommended to conduct such a campaign. Choose about three to five products that you are interested in working with and that can really be in demand in your region. Then post advertisements for their sale on free boards on the Internet.

It is important to adhere to the following rules:

post advertisements on the same boards;
post them in a unified form, one for everyone, so that you can compare the results later.

After posting your ads, carefully collect and analyze feedback. Consider the number of calls and what the callers are interested in: volumes, prices, willingness to place an order, etc. In this way, you can estimate the demand for the product that your store plans to sell. You can answer potential customers that the product is not yet in stock, or call back a little later and report that it is out of stock.

Determining viability

Only after you have decided on a niche, a product, an approximate market need, its capacity, and you know the needs of buyers and sellers, can you assess how viable your endeavor really is and whether it is worth opening a store of this kind.

Calculate how long it will take you to deliver the goods and how much it will cost you. Monitor the road transport market that operates in your region and choose the right carrier for yourself. Then calculate how much you can receive in the saddest and most optimistic scenarios. Based on the data received, he can decide whether you should open a wholesale store, base, warehouse or not.

Let's get down to business

Having resolved all the preliminary issues, decide on what scheme you will follow to conduct your business. There are two main directions of running such a business:

You look for a buyer, find a seller, organize and control the purchase and sale process, receiving a percentage of the transaction. For this type of activity, you must first conclude an agency agreement with the manufacturer.
You buy goods at your own expense at a wholesale price and sell them at a premium, making a profit from the difference.

As a rule, the latter model is used by large market players who have large finances to carry out transactions. In addition, this form of doing business presupposes the presence of a warehouse, personnel to service it, and the costs of their maintenance.

A novice entrepreneur can limit himself to the first option, which eliminates these expenses, as well as the costs of purchasing goods. In addition, he does not have to register an LLC or individual entrepreneur; he can work as an individual by drawing up an agreement. And if you start such work via the Internet, organizing a wholesale business will be even easier.

Two words about competition

When planning to open your own wholesale store, take into account the competition in the region and in the industry as a whole. A small player in the market can go bankrupt if large distribution networks that have established great teamwork are already operating in this area. Therefore, if you want to compete with such giants, study their features, think about what you can win in front of your clients.