Who is engaged in wholesale trade? How to organize a wholesale business
The first 50 steps to creating your own wholesale company
How to stop dreaming and make money 260,000 thousand rubles on wholesale sales from one transaction?
Quite a bold statement, isn't it? :)
One of my students, Sergei Danilov, not long ago earned 260,000 thousand rubles in net profit by bringing together a supplier and a buyer for the sale of edged boards to a large Moscow holding.
It only took a month from zero to first money. Below I will tell you about how exactly this mediation scheme works, and how each of you can implement it (if, of course, you want to).
In order not to go into all the specifics, I will try to explain everything in a simple situation. For example, there is some kind of timber producer who cuts and sells timber. He has a lot of forest, but no normal clients (because his only source of advertising is word of mouth).
And at the other end of the region (or even in a neighboring region) there is a buyer with money who desperately needs this forest.
However, neither of them can find each other, due to lack of advertising and Internet skills.
You can help these people find each other by earning your percentage of the volume of this timber sold. For example, one truck of timber costs about 300,000 rubles. By making just one call, connecting a client with a supplier, you can already earn 30,000 rubles by making just one call, and bringing these people together.
Why can intermediaries now earn from 100,000 rubles out of the blue?
It's no secret that at the moment in Russia and a number of CIS countries the wholesale market is still in the wildest state.
Manufacturers and large wholesalers continue to attract customers only through word of mouth and old connections.
However, both suppliers and buyers always need each other (because construction is ongoing, production is running, and so on). With the development of the Internet, almost every person who has a desire has the opportunity to become a kind of guide in the world of wholesale. When you, following simple technologies, find clients for your supplier, thereby earning really serious money through intermediation.
But how can this be? Why can't the buyer find a supplier himself?
There are 2 reasons here. The first reason is that the supplier does not know how (and does not want) to advertise properly. As a rule, these are men over 50 years old who have been involved in this type of business since the 90s. They completely deny the Internet, the website, Yandex Direct, and so on.
Of course, buyers can find them themselves. But, since our country is still huge, and wholesale products are consumed in truly huge volumes, one way or another, not all suppliers are lucky enough to sell their products in full.
We are in the business of helping suppliers sell their products on a wholesale scale.
What is sold wholesale or what niche to choose?
Wholesale sells everything that is consumed in large volumes. Do an experiment. Make an announcement on Avito (avito.ru) that you, for example, sell sugar in bulk at the average market price. Most likely, in a day you will receive from 10 to 15 calls from specific people WITH MONEY, ready to buy your sugar. All that remains is to find a supplier, increase your margin and make money on it.
This is the so-called thirsty crowd principle. You can sell anything that is consumed in large quantities. This includes timber, meat, sugar, cereals, fruits, vegetables, crushed stone, sand, chemical products, caviar, special equipment, various equipment, and so on.
Bad niches in wholesale are: some unique cosmetics in bulk, unique rhinestones in bulk, colored pencils in bulk, and so on.
For successful sales, you need a niche in which there is always a huge demand (because people are constantly building something, pouring something into cars, and eating something).
What if I bring the supplier and the client together, will they handle everything themselves and cheat me?
We also once wondered about this very question. But, nevertheless, the solution to this issue is an agency agreement. This is when you enter into an agreement with a supplier that you will find clients for him and receive interest on the volume of products sold. In this case, the contract guarantees you that you will not be scammed.
There is no point in the supplier cheating you, because he is interested in the constant sale of his products. And, of course, the more money you make, the more money he will make.
How to attract clients who have $$$?
We attract all clients through message boards on the Internet and through Yandex Direct contextual advertising. There is a simple algorithm that will allow even a beginner to write truly selling advertisements that will generate stable calls and orders.
Oddly enough, now many large companies and holdings are looking for suppliers on the Internet. Unfortunately (or fortunately), suppliers do not understand this, so intermediaries easily make money on this.
Who am i?
Hello, my name is Alexander Zalogin.
In a year and a half, I managed to create 2 of my own wholesale businesses from scratch without any start-up capital to companies whose average ONE-TIME transaction checks reached $20,000.
For the Russian wholesale intermediary business, these are very significant amounts (at least for today).
Now we sell fruit and vegetable products to large Moscow factories.Our company website: www.stu93.ru
Why am I telling this?
Not at all because I want to show off my earnings. I want to show that since I succeeded(and, to s I mean, many of my students already have, although in slightly lower numbers than mine), then you are capable of this too.
Why, if everything is so simple, doesn’t everyone do it?
If you think so, then you are in vain :) Here, for example, are reviews of people who are already doing this and getting some results. Screenshots from VKontakte:
You too can start selling wholesale and make moneyon this from 100,000 rubles!
It is enough just to take a ready-made proven model,and consistently apply it to your niche
However, at the same time, I understand that the most difficult are the first steps. Start from scratch to the first more or less noticeable income, at least stable $1000-1500 per month. Then, having a stable income, it’s much easier.
People often come to me with this very question: Alexander, help me get started.
But our wholesale trainings with Vladimir Olaev are often too expensive for beginners.
Therefore, I decided to provide detailed step-by-step instructions for starting wholesale sales - how I would start wholesale from scratch if I started now.
In this training, I will tell you in detail the first 50 steps that will allow you to:
1) Find out which niches in wholesale work and which don’t!
2) Analyze the possibilities of your region of residence for wholesale sales
3) It’s good to analyze niches for seasonality
4) Cut off all non-profitable niches
5) Finally select 5 key niches for the test
6) Directly test the selected niches
8) Receive first calls and orders
9) See the dynamics of selected niches
10) Finally decide on the niche in which we will sell wholesale
11) Create ads that actually sell
12) Use Yandex business cards as a sales weapon
13) Launch the right wholesale Yandex Direct cheaply!
14) Write selling ads in Yandex Direct
14) Create a selling wholesale website for 280 rubles!
15) Close all customer objections on the website
16) Show the value of your offer on the site (thus getting out of competition on price)
16) Go to work with clients
17) Learn how to properly close clients on deals
18) Gain the skill of working with customer objections (expensive, I’ll think about it, etc.)
19) Write your first sales script for working with clients
20) Receive first orders from clients
21) Go to supplier search
22) Get a detailed algorithm for finding a supplier through Networking or personal connections!
23) Find your suppliers on the Internet
24) Set up Yandex business cards to search for potential suppliers
25) Find out a way to 100% check a supplier for fraud
26) Get a working script for conversation with the supplier
27) Guaranteed to interest the supplier in mutually beneficial cooperation
28) Create a marketing kit or sales presentation to create maximum trust
29) Find out why an agency agreement is good, but an LLC or individual entrepreneur in wholesale is bad!
30) Find out the main legal aspects of the agency agreement, or how not to be deceived!
31) Get a WORKING agency agreement template
32) Conclude an agency agreement with the supplier in person
33) Conclude an agency agreement with the supplier remotely
34) Start connecting the client with the supplier
35) Schedule a personal meeting with the client (if possible)
36) Conduct a transaction remotely
37) Overcome the fear of personal meetings and negotiations
38) Find out exactly how to behave at the first personal meeting with a client and supplier
39) Find out exactly how to position yourself in front of a client
40) Correctly sign the supply agreement at a personal meeting (if possible)
41) Correctly sign the supply agreement remotely (if a personal meeting is not possible)
42) Monitor the client’s payment process
43) Monitor the process of shipment by the supplier of goods to the client
44) Find out the main aspects of delivery in the Russian Federation and the CIS
45) Learn how to work with road and railway transportation
46) Find out how to be sure to avoid scams in wholesale
47) Receive the first agency interest from the supplier
48) Continue working with a client with whom a transaction has ALREADY been completed
49) Create a constant flow of agent interest
50) Start searching for new potential clients
The seminar is mainly “for our own people” - too many people ask.
The duration of the seminar is 7 hours.
Reviews about the training
|
Feedback about the training: I NOW EXACTLY KNOW HOW TO DO IT!
Ivan Potishny http://vk.com/potishnyy |
|
Feedback on the training: Learned - did - got results.
The whole family took part in the webinar. Initially, this was my idea, but my husband was very skeptical. Moreover, paying money on the Internet for learning what he already knows was, to put it mildly, generally strange for him. He had experience with similar sales before. I thought that everything in this area i.e. My husband is not at all familiar with the information business. This format of training is completely incomprehensible to him. And I, in turn, had deep knowledge of Ya.Direct. I work in Direct every day. Imagine my surprise when my husband heard some tricks and subtleties for himself, and I learned new tricks of Direct. That was MEGA COOL! I’ll tell you right away about my husband’s reaction. Remember, yes, that he was skeptical. Here are the freeloaders! We’re all sitting there doing nothing, and they’re already asking for a break! In general, these were unexpected emotions for me. The best part was in the morning. My man slept with the knowledge he gained - and in the morning he already developed an action plan. And I received compliments for insisting on participating in the webinar. Vladimir, Alexander! Thanks for the webinar. Indeed, there is no water, but only practical information. Found out - did - got results. Natalia Markelovahttp://vk.com/id3930528 |
|
Feedback on the training: I think that this training is for those who want to achieve something and don’t want to just waste time. Guys, you conducted the training well in all the stated parameters, which open up new opportunities for us and will allow us to move on. I would like to note the successful presentation of information, understandable for people with no experience in this field of activity, and in addition, I was especially pleased with the large number of live examples from your own practice!!! I was left with a very good impression. I believe that this training is for those who want to achieve something and don’t want to just waste time. Thank you:))) Ekaterina Shutova http://vk.com/id17442023 |
Who is this training for?
This training is primarily for those who have already decided that waiting 100,500 years until they can finally afford to buy a decent car and provide themselves with a decent life is too long. And therefore I am ready to act.
Who needs it - you know that you need it. If in doubt, definitely not here. For those who don’t have time and miss out, you’re simply unlucky, and we refuse to work with losers!
Along with this training you will receive the following bonuses:
1. Book "Secrets of a quick start in WHOLESALE"
Cost 1497 rubles, for you - free.
- Where should you really start in wholesale?
- Why a niche is the basis for a successful start
- What niches in wholesale actually work?
- How to motivate yourself to continue developing a new niche?
- 5 basic criteria for a profitable wholesale niche
- How to be guaranteed to start in wholesale without any skills or experience
- Where can I get motivation for a quick start?
- Why do 90% of beginners never achieve results?
- How to correctly model other successful niches in the wholesale business
- What is “Startup Syndrome” and how to deal with it?
3. Templates for working agency agreements for wholesale sales
4. Step-by-step checklist of all 50 steps, with examples and templates:
I guarantee you a full refund within 30 days if, after implementing all the technologies from this course, you do not get the expected effect and are disappointed in the purchase. I am so confident in the quality of this information that I give you this guarantee.
Instructions
Find out current customer purchasing prices and other delivery conditions. It doesn’t matter that you come to clients without the intention of concluding an agreement. Now you are doing reconnaissance. You can introduce yourself as a representative of a new company that plans to serve this region. Ask what customers are unhappy with. You will definitely collect some information. Some people ask for a price list and don’t tell you anything. Make sure you communicate with the head of the company. Say that you can give good conditions, but you need to estimate the approximate volumes.
Find suppliers, calculate and estimate margins. Based on the information collected, you can roughly estimate the volume of purchases. This will be needed for negotiations with suppliers. You need to get better conditions from them, even though you are still in preliminary negotiations.
Make an offer to your clients. After the 2nd step, you know where they cooperate with other suppliers. Create a package of commercial proposals that will allow you to stand out from similar ones. Take advantage of your competitors' weaknesses. If potential customers complained about delivery times, you can focus on the quality of this service. It will not be easy for competitors to restructure their work.
Sources:
- how to work with wholesale
The creation of new warehouse complexes is a natural step towards the development of a trading or trading and production company. Having wholesale warehouses in the regions where your branches operate or dealers operate is convenient and profitable. Therefore, if you, as the head of a representative office opening somewhere, are entrusted by the company’s management with organizing a warehouse, do not be surprised.
You will need
- - detailed business plan for a new wholesale warehouse;
- - a building (which you can rent or build yourself);
- - warehouse equipment ordered in accordance with the calculations made;
- - staff (5-10 people);
- - package of permitting documentation.
Instructions
Collect all information on sales in a given region, understand the dynamics of their development. Be sure to consult with local or representatives of your company. Before taking any steps towards the warehouse, draw up a plan with the most detailed financial information.
Decide what location for the warehouse will be, and only then look for a ready-made building for a warehouse complex or land for it. The supply chain with all the details must be in your head - only then can you understand the strategic feasibility of a particular location. If you want to rent a premises, make sure that it is suitable for setting up a warehouse of the type you require, that is, a wholesale terminal.
Use the services of a consultant in the field of warehouse logistics if you are not a specialist yourself. Having a building (built or rented), start working by organizing the warehouse space - divide it into sections (loading and unloading, receiving area, storage area and picking area). Calculate what kind of warehouse equipment you will need - to do this, use complete information about the range of goods and materials you are dealing with and their weight and size characteristics.
Recruit a team of warehouse workers, of whom there are quite a few employed in a wholesale warehouse. However, the main thing is the warehouse manager, who will then himself look for people for further work. You will need five people according to the most conservative estimates; sometimes the warehouse complex is serviced by up to ten people.
Helpful advice
Do not treat warehouse work as a secondary matter and trust it only to professionals; try to use all modern methods of warehouse management (including a WMS system).
The access roads to your wholesale warehouse should be as convenient as possible and always free, so it’s better to set up a warehouse on the outskirts of the city so that your transport does not sit in traffic jams for hours.
Sources:
- Organizing a wholesale warehouse: something you shouldn’t be afraid of
It is unlikely that you will be able to start a wholesale trade business with small financial investments. However, competent organization of such a business will bring large and stable profits.
You will need
- - start-up capital
- - stock
- - freight transport
- - promotional events
- - software
Instructions
Register your future enterprise. An individual entrepreneur without forming a legal entity is a form of ownership from a taxation point of view. However, if you plan to enter into large contracts with factories and manufacturers, a legal entity such as a limited liability company is preferable. Choose a convenient warehouse. When choosing a storage facility, take into account the characteristics of your warehouse, its transportation and storage. Access railway tracks, ease of travel and parking, warehouse opening hours, availability of personnel and loading equipment - all this can be decisive in future work.
Make your company's flawlessly streamlined logistics one of its main competitive advantages. Having your own transport to deliver goods to customers, promptly processing and fulfilling orders, competently organizing the warehouse space - all these points play a key role in the success of the work.
Purchase special software for your company, for example 1C "Trade + Warehouse". Such a program will help you with comprehensive inventory and shipment management.
Place information about your wholesale company in specialized directories, yellow pages, and local Internet resources. Open a multi-channel telephone line to inform customers.
No matter how well your wholesale business is organized, the deciding factor for most retail customers is the price of the product. Direct shipments from factories and manufacturers will help you ensure the lowest price. Most of them have different price levels for wholesale customers. First of all, the price will be affected by the annual volume on your part. Your goal is to obtain an exclusive product from a factory in your region. This way you can get the product at the lowest possible price, and also exclude potential competitors with the same product.
To ensure a low wholesale price, work on cost optimization. Poor use of time, transport and space can greatly affect the price. In addition, it makes sense to think about the development of online commerce. The opening of a wholesale Internet will significantly reduce warehouse and trading costs and allow you to offer a flexible system of discounts and lower prices.
note
Take care of the protection and insurance of your goods, especially when it comes to transportation over long distances. The loss of a large shipment can jeopardize the entire business.
Helpful advice
Keep track of the deadline for selling your goods, ensure a stable rotation of product lots. If goods of the same name arrive at the warehouse, sell the earlier batches first.
Sources:
- Rules for selling goods in wholesale trade
Wholesale trade requires considerable investments, serious competition and thoughtful organization of logistics. However, the income from a wholesale company, if the business is built correctly, can exceed all your expectations.
You will need
- - start-up capital;
- - stock;
- - transport;
- - Internet.
Instructions
Conduct market research in your region. Identify the major players in the area you have chosen to trade. Note for yourself the distinctive features of your company that can become competitive advantages. This could be a lower price, deferred payment, favorable delivery conditions, high-quality work with small cities in the region.
The key point in organizing a wholesale company is debugging warehouse logistics. Find a premises that meets all the requirements of your business and the specifics of your products. When choosing, you should take into account the availability of warehouse equipment, convenience of location, the presence of access roads and railways, conditions for maintaining warehouses during the cold season, sewerage, and security.
Enter into agreements with the manufacturers of goods from whom you will purchase products. Specify the conditions in detail: terms, packaging, assortment. Make an annual plan, since it takes a certain amount of time to produce goods. Stipulate the conditions for acceptance of goods and return in case of defects.
Purchase the necessary equipment. To work inside a warehouse, you will need at least one forklift and a dolly. Depending on the type of product, you can make your work easier with the help of specialized warehouse equipment: rigging systems, stackers, lifts. If you plan to deliver products to customers, consider purchasing a truck.
Create a website for your company, combined with the functions of an online store. This way you can reach others and make larger deliveries. To create a wholesale store, it is not necessary to create an attractive portal interface and spend a lot of money on its support. The main thing is complete information about available goods and timely updating of warehouse balances. Make a page using one of the free resources. Enter into an agreement with the transport company. Wholesale deliveries to the regions will bring good income, since in this case the factor of competition with nearby similar companies is reduced.
Video on the topic
note
Small wholesale buyers are extremely sensitive to price fluctuations. Conduct constant price monitoring so as not to be left behind in your business.
Helpful advice
Since warehouse equipment is quite expensive, consider purchasing used equipment. In addition, it is worth considering leasing purchase schemes.
Many people dream of opening a small retail business. The idea of running your own business, working for yourself and selling things you're interested in sounds like the perfect plan. It is worth learning more about how to successfully open a small retail business.
You will need
- - business plan;
- - premises;
- - license;
- - computer;
- - equipment;
- - insurance.
Instructions
Take special courses at your local university or association to learn more about starting and operating a small business. The more you know and try to learn before your case, the better prepared you will be when faced with problems.
Plan your business down to the smallest detail. Think about everything from financing and store location to the products you'll sell. Write a detailed business plan and submit it to the bank for review. If you want to get a business loan, you will have to provide a perfect business plan.
Select a location and name for your store. You may need to check the zoning regulations for the area you choose to find out what businesses can be located there and under what conditions.
Obtain the appropriate licenses and permits for your business and/or its rental. You will also need insurance and filing a tax return. These steps can be completed more quickly by working with a small business association in your area.
Hire employees only after your plan has been approved, all necessary paperwork has been received, and you have all taxes sorted out. When you start hiring employees, it marks the stage of getting your business up and running.
Order the required number of products for your store. Stock up first on those products that will sell quickly and you are sure of it.
Video on the topic
Sources:
- 40 Marketing Ideas for a Retail Store
From the point of view of stable demand and sustainability of business relationships, business in the b2b sector has an undeniable advantage. Well-established connections and well-established distribution channels allow wholesale suppliers to stay afloat even in times of crisis and stagnation.
Instructions
If you decide to organize a wholesale trade, first of all choose the niche in which you are going to work. It’s good if you have an idea in advance of how the standard business process is structured in the chosen area. This will make it easier to enter the market. If not, first study how all participants in the sales chain are interconnected. A detailed study may take a long time. However, its necessity is difficult to overestimate. Based on its results, you will not only represent wholesale trade from the inside, but you will also be able to soberly assess your strengths and, possibly, abandon the chosen idea.
If confidence outweighs all the arguments against, begin searching for suitable premises, negotiating with suppliers, and formalizing the chosen activity. In each of these issues there are a lot of nuances and smaller tasks. So, for example, the premises must not only provide the convenience of trade, but also meet the requirements of supervisory authorities. In addition, have certain technical characteristics and a convenient location. Search, selection and negotiations with suppliers, registration with the Federal Tax Service are also quite extensive issues. Ideally, it is better to do all this at the same time. This way you can save time and money.
When the main issues have been resolved, the lease agreement has been drawn up, and you are ready to ship the products, start looking for sales in earnest. Strictly speaking, you should have started looking for sales even before the very first step. After all, if there is a guaranteed demand for a product, then building the rest of the business process is not so difficult. There are a lot of ways to find clients, and most of them depend on the trading niche you have chosen. In general, send out, try to meet with the purchasing decision makers for large companies. It is difficult, but quite possible, to build an entire business on several large clients. You may also be able to find creative ways to enter the market. And never stop looking for new sales channels. Overall turnover is much more closely related to the profit received than in other businesses.
Homestead farming - from small country gardens to luxurious country gardens - is experiencing a new wave of popularity. Landscape design becomes a favorite hobby, and caring for plants is a pleasant way to overcome stress. That is why a business related to gardening products will bring a stable income.
You will need
- - premises;
- - start-up capital.
Instructions
Find a space for a garden center. Today, the range of products in this category is quite large, so the size of the retail space depends only on your capabilities: you can always fill it with a sufficient number of products. It is advisable to choose premises in a large shopping center or a building on the outskirts of the city. Owners of dachas and household plots will find it convenient to buy necessary goods on the way to their country house. Solve issues with fire protection, sewerage, heating. If you are going to sell plants, make sure that it is possible to maintain a certain temperature in one of the sales areas.
Find suppliers for your shopping center. It is optimal to sign contracts with several companies specializing in different products. As a rule, to maintain the current assortment, you will need to pre-order well before the start of the season.
Create a product range based on an analysis of the target audience. If you are targeting owners of small garden plots, focus on inexpensive tools, seeds, seedlings, household materials, and gardening tools. Expensive equipment can also form a separate category: lawn mowers, sprinklers. If your store is located near a large cottage village, it is advisable to introduce rare plants, wicker furniture, decorative elements for landscape design, and garden architecture into the assortment.
Introduce designer services to your garden center. Today, this position is in great demand. Such a service does not have to be expensive, because by creating a landscape design project for a client, you will be able to sell much more of your store’s products.
note
Be attentive to the conditions under which plants and seedlings are kept. Most of them require a special microenvironment, as well as special feeding, without which they may die.
Helpful advice
Introduce into your assortment products intended for casual customers: picnic equipment, potted flowers, dishes, accessories.
The average person increasingly associates a trip to the supermarket with queues, traffic jams and heavy bags. Receiving the most necessary products at home is a great solution for most buyers. That is why online store products can generate stable income and have excellent development prospects.
Do you want to do serious business, but don't know where to start? If you have business acumen, perseverance and can do a little math, then you should think about the fact that you can make big profits if you organize a wholesale business correctly. how to do this so as not to burn out?
Naturally, this is not so easy, especially if you have no idea how to work in this area, but are going to start a wholesale business from scratch, without any prior experience. In order not to burn out, in this matter you need to have an exact understanding of what you want, what your goals are, that is, planning is important. When you have a goal and a plan to achieve that goal, it will be easier for you to move forward step by step.
Let's talk about where to start, and you need to start by studying the market - is there a demand for the product you are planning to purchase, if there is, how big is it or maybe it is fading away, in which case you are at risk fail. That is, we start by choosing a niche. Then we study consumers and your possible competitors with their strengths and weaknesses, so that we can then analyze and draw a conclusion. This is very important, because the more competition you have, the more difficult it will be for you to break through, especially considering that you are a beginner, and they have already got everything figured out.
It is impossible to start your own business, in this case a wholesale business, without knowing your potential clients and their needs. On the one hand, you don’t need much to get started - you contact, for example, China, order a wholesale batch of phones from them, add your percentage and sell it.
Everything seems simple, but if you do not draw up a business plan, do not calculate costs and do not find a place of sale in advance, then the failure of your wholesale business is guaranteed.
What is a business plan?
A business plan can be compared to a flashlight that will show you the way in the dark, but only if you don’t just wave it in all directions, but purposefully shine it only in the direction you need. Likewise, a business plan is what was mentioned above, only in order, structured. This is the road along which your business will move forward. If you set a goal to start and know where, then, without delaying until later, take a pen and notebook and write down in detail for yourself:
- What will I buy?
- Who will I offer this to?
- How much money do I have for this?
- Do I have competition, who are they and how many are there?
- My immediate goals?
- Long term goals?
- Possible failures and methods to correct the situation.
- Will I have advertising, labor or other additional expenses?
A business plan is not a one-time entry, it is your diary where you will write down your conclusions, decisions, goals, problems and their adjustments every day.
Return to contents
Cost calculation for wholesale business
Do you know the saying “a penny saves a ruble”? In fact, this is true. What many entrepreneurs lack is accounting and constant balance of debit and credit. Meanwhile, if you want to be a truly successful entrepreneur, then you need to constantly analyze expenses; it should not be such that you do not know where you lost or where the money disappeared.
In your business plan, you must separately indicate all possible expenses, planned, permanent, unexpected, hidden, irrevocably spent, and so on. No matter how strange it may seem to you, you should calculate the salary for yourself, preferably it should be fixed. This will help you avoid uncontrollably taking money that was intended to run your business.
If you don’t know how to do this yourself, then hire someone who will do it for you and for you. You can also download a special accounting program that will do the calculations itself; you only need to enter your income and expenses. These are the moments that make up a full-fledged wholesale business that anyone can start.
Return to contents
Another important point
While you alone are thinking of starting a business like wholesale, there are entire companies and distribution networks that do the same thing, only as a team. Therefore, think about what can increase your chances in the sales market, perhaps if you offer a wider selection for the convenience of customers, you will have a better chance. After all, in this way, when presenting your product, you can emphasize that you save both the client’s money and time by providing him with not just one product, but a whole group. It will be convenient if you agree in advance on deliveries to a specific store or enterprise.
In this case, you will be faced with the question of storage, transportation, insurance, documentation of the goods - all this will affect the final result and whether the client wants to continue to cooperate with you. With all this, you need to maintain cost optimization in order to continue to focus on your core business goals. It may even be cheaper for you to order professional services from a logistics company, especially since they provide a whole range of services in various areas of business.
Wholesale trade is a necessary link in the trade of any goods. Essentially, wholesale trade is an intermediary between a manufacturer and a retailer.
The job of retailers is to sell products directly to customers. Wholesale trade deals with the resale of goods from the manufacturer, distributing the product in smaller quantities to retailers.
Wholesale trading can be very profitable, or it can be barely profitable.
A lot depends on the scale of wholesale trade, the entrepreneurial spirit of the organizer, and the level of markup.
Types of wholesale trade
Wholesale business idea can be implemented in various options. The wholesaler may be dealer, official representative of the manufacturer, facilitating his work in selling products.
1. Official representative
This is the most profitable option for wholesale trade, since it allows you to set your own valuation for the product, do not depend on other suppliers in the trade chain, and respond in a timely manner to changes occurring in production.
Large manufacturers, as a rule, create wholesale dealer companies themselves in order to separate production and sales of products and increase sales efficiency.
The dealer option for implementing a wholesale trade business idea can rarely be used in practice by a novice entrepreneur, since this niche is usually occupied.
2. “Sales department” for the manufacturer
Therefore, entrepreneurs often use the option of cooperation with several small manufacturers who do not have their own companies for selling products. In this case, the wholesaler takes over the functions of the manufacturer's sales department and handles logistics, earning some money on a markup.
Features of the “sales department”: pros and cons
The disadvantage of this wholesale trade option is the need to own or rent a warehouse for finished products, since manufacturers, as a rule, strive to transfer the manufactured products for sale as quickly as possible.
The risks are that there may be a time lag between receiving finished products from the manufacturer and concluding contracts with retailers. In this case, the warehouse becomes overstocked and sales become difficult.
However, the advantages of such wholesale trade are the possibility of establishing a favorable markup on goods and obtaining deferred payment terms from the manufacturer.
3. Intermediary - wholesale distributor
Another option for wholesale trade is the purchase of large quantities of goods from a larger wholesale supplier and subsequent resale and delivery to retailers, that is, obtaining the status of a wholesale distributor.
This option is more realistic for use by novice entrepreneurs.
However, to obtain an acceptable level of profit, it is necessary to have transport for delivery of goods and, preferably, to have a wholesale warehouse for the formation of consignments of goods. With this type of wholesale trade, the money goes to the account of the wholesaler, the consignment of goods arrives at the warehouse, and the retailer does not see from whom the goods are actually purchased.
Main distributor risks
This is important because there is a danger of entering into a direct contract between the retailer and the main supplier. This type of wholesale trade provides fairly good experience in organizing transportation and concluding contracts.
Wholesale trade: logistics
Logistics schemes can be very different:
1. Goods from suppliers can be delivered to the warehouse of the wholesaler, received, and then batches are formed from the received goods for delivery by the retailer.
2. You can also work according to a simplified scheme, when a batch of goods is formed by a wholesaler, and the goods themselves are delivered by transport companies from the supplier’s warehouses.
True, in this case, the name of the real supplier of the products may appear in the waybills, and there are risks of concluding direct contracts.
3. An even simpler option for wholesale trade, from a financing point of view, is simple intermediation between wholesalers and retail stores.
In this case, the intermediary takes on the work of coordinating the assortment, forming a batch of goods, and delivering the goods to the retailer. In this case, as a rule, the intermediary does not set a wholesale markup on the product, but receives a certain commission for his services.
This option for wholesale trade does not require working capital, but carries a lot of risks, since the intermediary can always be excluded from the chain of wholesale trade business processes.
Wholesale trade: where to put your efforts?
To choose the right option for implementing a wholesale trade business idea, you need to thoroughly study the product market, conduct research, narrow your specialization as much as possible, without trying to cover the wide range of goods offered.
Specialization and marketing research allow you to have a good understanding of the range of goods, wholesale and retail prices, and, depending on demand, set the optimal price to obtain maximum profitability.
Organizing wholesale trade can be a very profitable and promising business. But this is only possible if you have gained certain experience, have knowledge in the field of logistics, and carefully consider legal issues when concluding contracts.
Business idea: wholesale trade
