No matter what product you produce, your next big step is to start selling your product wholesale to retail stores.
Whether you are planning to sell to small local boutiques or large national retailers, read on for some helpful tips that will help you to succeed.
Decide which stores to target
Figure out which stores should stock your products and who your target customer should be. Where does your target demographic shop? Which region do you want to sell in? You can learn more about the stores by visiting them and walking around. Where do you see your products being stocked on the shelves? How does your product fit into what the store is already offering?
Find out what the unique selling point of your product is and then relentlessly market it to your retail store customer. Call on them via email, phone and mail on a regular basis and don’t give up. Be ready to show your buyer some customer testimonials about your product so that you can prove why it is worth investing in. A good review from a reputable source can make a big difference in a competitive marketplace. Build your brand and show them that your product is in demand and will sell.
What Is The Store’s Buying Strategy?
The buying strategy varies by industry – in some stores the store owner will directly order the items. In other stores you might be working with a dedicated buyer. Often the store will make purchases based on a seasonal schedule, or they might prefer to place their orders at trade shows, or to order a large amount before the high season. Be prepared to accommodate their needs whatever they are.
Determine Your Basic Price
Although the math side of things isn’t the most exciting part, it is one of the most important aspects of this process. Generally it is standard to sell your wholesale items at 2.5X your production costs. Usually it is safe to assume that the retailer will mark up their cost when pricing your product for customers. It is also good idea to offer the retailer a “suggested retail price” so that you can make sure you are offering a price that makes sense of the customer and the retailer.
For example, if your product costs you around $2 to produce, you might sell it for the wholesale price of $6. This means that your suggested retail price should be $12. Of course, make sure that you calculate the production costs of marketing freight and other expenses when determining this.
You can also reduce your prices when your customer buys in large amounts, as this will encourage large orders and increase revenue.
What About Taxes?
When you are selling wholesale you will not charge sales tax on the order, because the retailer will tax the customer upon purchase. However, it is important to obtain the correct tax ID documentation from your retail buyers.
Keep These Tips In Mind In Order To Successfully Sell Your Products Wholesale To Retailers!