Becoming Your Own Distributor – A Useful Tip for Wise Wholesalers
Wholesale business is a prospective business with unending opportunities in it. Many wholesalers have their businesses successfully running but they still strive to take this business to a new level. Wholesalers who have the urge to excel can opt for distributorship and start distributing their own products. Most of the people think of wholesalers and distributors as the same entity but in actual these are two separate businesses in the same supply chain. Wholesaler is a smaller entity as compared to distributors. Distributors have various kinds of products in different varieties and sell those products to small wholesalers who then resell products to retailers.
Becoming your own distributor is a useful tip for wholesaler as he can reap higher profits from it. In order to do so, the wholesaler would need to have a plan and follow it to the end to successfully start distributorship services. First, the wholesaler would need to estimate the amount needed to start the distributorship services. While calculating the amount, add prices of new product lines to be bought, extra warehouse space to store more products, extra staff to handle massive inventory, transportation services and much more. After estimating the total amount, you should check if you would be able to back up the amount easily and can support that for next some months.
The next thing you as a wholesaler would need to do is to decide the new product lines you will have in your inventory. After deciding the product lines, arrange extra warehouse space. You can get a separate warehouse on rent to stock new product lines, add extra space in existing warehouse or shift your whole setup to another place where all operations can easily be operated.
When done with warehouse, the next step is to contact various manufacturers to get quotations and make the deal with the best ones. Remember that best one does not mean the one who offers cheapest products but the best means the manufacturer who offers good quality products at reasonable price. As you will be now acting as distributor, so you will need to contact wholesalers to buy products from you. The plus point you have is that you will act as distributor as well as wholesaler. This edge would bring you confirm high profits.
As distributors also transport products to wholesalers, so you will be also doing that and will ultimately saves the amount paid to private transporters. You will directly transport products from manufacturers and stores them at your inventory. On demand you will transfer products to wholesalers and retailers. The last thing you need to do is to market your business to get potential customers. It is up to your intelligence that how you mould marketing strategies to entice customers. Many wholesale distributors offer different discount deals, schemes and freebies to wholesalers and retailers to get their attention.