FINDING POTENTIAL WHOLESALE ACCOUNTS
By Darren Hendricks
FINDING POTENTIAL WHOLESALE ACCOUNTS
By Darren Hendricks
Every retail store is a potential user of specialty merchandise or gift items.
That's a pretty broad statement, but it's true. And where some Wholesalers might make a mistake is to approach only the obvious choices; gift shops, novelty and collectible outlets, general merchandise dealers and the like.
But what about a locksmith? Or a bookstore? How about stationary stores? More and more of them are featuring gift displays. So, the local phone directory is a ready-made list of potential clients. Add to that the retail stores you regularly patronize, and you're ready to go.
While nearly every retail store is a potential client, those stores will generally fall into three basic categories: Mom and Pop, Small Chain, and Franchise or Major Chain.
SELLING TO "MOM AND POP" STORES
The local stationery shop, liquor store, truck stop, convenience market, gift shop, and all those -her privately owned retail stores that line the streets and strip malls of virtually every city and town are prime prospects for your merchandise.
Here's why they should buy from you:
1.You offer fast, personal service.
2.Your prices are outstanding.
3.Your product quality is excellent.
4.You offer a tremendous selection.
5.Your product line is constantly updated with new items.
6.You're local.
7.You're dependable, professional, and easy to work with.
Of course, that last reason is up to you, and it's CRITICAL! You've probably heard the saying: "People do business with people they like." It's true!
These types of stores are usually family-owned and operated, so in all likelihood the folks working in the store are the ones you'll want to talk to.
Start ... with a letter, phone call, or best of all a personal visit. Introduce yourself as a local wholesaler of popular gift merchandise, and ask to speak to the person who handles purchasing. Make an appointment to show your line. Don't worry if you get turned down the first time. Call again. And a third time. Don't stop until you get that appointment!
Next ... show up for the appointment on time, with samples, business cards, catalogs, price lists, and your order book on hand. Conduct a friendly, brief, yet thorough presentation. Explain how these products can increase THEIR sales - remember; they're interested in what you can do for them, not the other way around.
SELLING TO SMALL CHAIN STORES
Occasionally you'll run across small chains, where there may be several,even a couple dozen stores operating under the same name. Often a single owner, who oversees much of the purchasing for all the stores, runs these. Again, you offer all the same reasons this person should buy from you, and you'll follow the same steps in making contact, handling a sales appointment, and filling the order.
Payment:
Try for the identical terms you'd propose to a "Mom and Pop" store. Again, if possible, don't fill an order without at least a deposit large enough to cover your costs. Otherwise, you'll have to cover the difference until they pay you the balance.
"MOM AND POP" STORES
1.Easy to meet the person in charge of buying.
2.Can be a friendly, less formal relationship.
3.Smaller orders.
4.Often immediate payment
SMALL CHAIN STORES
1.One person (possibly the owner) may be in charge of buying for all stores.
2.Can be a friendly, less formal relationship.
3.Orders may be larger, due to more stores.
4.You may still be able to negotiate immediate payment, or at least a substantial deposit.
5.Sometimes a chain-of-command to go through.
6.Usually a professional, "bottom-line" relationship.
7.Potentially huge orders.
8.Possible "Net" payment terms.
SELLING TO LARGE CHAIN STORES AND FRANCHISES
Here's where you can make some really high-volume sales. Don't be intimidated by the size of the operation, or the fact that you're contacting a corporate buyer in some instances. You've still got all those same great reasons that this company should buy from you.
Start with a personal visit to the store. Ask the store manager for the name of the person responsible for purchasing giftware. In some cases, the manager has the authority to make those purchases (especially if it's a franchise, in which case the manager may also be the owner). Other times, you'll be dealing with a corporate buyer.
If the manager has the purchasing authority, you'll proceed as you did in the examples above. If a corporate buyer handles all purchasing, you'll contact the corporate buyer. Introduce yourself. Give a brief summary of the lines you carry that you believe will be a good fit for her stores. Ask for a personal appointment.
Important: Many times - maybe even most of the time - you'll get turned away on your first call. Don't be discouraged! The buyer may simply be testing your professionalism and follow-through. By calling again in a couple weeks, you demonstrate those qualities.
Next ... be on time and extremely businesslike when you show up for the appointment. Get to the point; and be ready to talk price. The buyer's job is to get the best possible price, so the more you can help her, the better your chances of landing an order.
Next ... when you get a Purchase Order, immediately contact your supplier to determine availability. If there's a problem, notify the corporate buyer right away:
Example: "I appreciate your order for 250 of Item #29435. I'm able to deliver the bulk of the order - up to 150 items - immediately. I'll deliver the balance by the end of the month. Will that be satisfactory?"
Finally ... fill the order and have it shipped directly to each of the stores, in the quantities the buyer has specified.
Payment:
In dealing with large chains and some franchises, expect that you'll be asked to accept "Net" terms; typically "Net 30." Technically, this means they are required to pay you the full amount due for the order within 30 days of merchandise delivery.
In The Real World ...
... this could mean up to 60 days before you receive any payment. And with "Net" terms, you'll receive NO deposit. So, you have to "float" the cost of the order for that time.
Some Wholesalers use credit cards as "financing" for these larger orders. That way, they're not out-of-pocket for the costs, and when payment arrives they're able to payoff the card and keep the profits.
About the Author
Darren Hendricks has been involved in marketing in one form or another since 1979. He has owned or co-owned 3 successful companies. He is currently owner of Far Horizons Home Based Business Program
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What Everyone Should Know About How To Buy Wholesale
By: Melanie Burns
Finding a supplier for the product you want to sell, at a price that you can profit from, can be a big task. The best suppliers for your online sales or auctions do not advertise their services and often cannot be found online.
Those that you can find online tend to be middle-men. It is often difficult to get a good enough price to make any real profit online.
Let me tell you about my simple 2 step system to find an untapped source for wholesale suppliers. This is so simple that it's often overlooked as a source for product. This system involves thinking outside the box and not letting policy stop you. (continued below)
The First Step to find a supplier is to find someone that already sells or has access to what you want to sell. This could be a website, an eBay seller, a manufacturer, a wholesale outlet, or a regular store in your city. This is the easy step. You know what you are looking for and you can search on the internet, not for a wholesale source, but for anyone already selling what you want to sell.
Another valuable source for a local supplier is your local phone book. The yellow pages are the best way to find local sources. This should be the first place you look. Doing business locally with someone that you can meet face to face is a big plus for your business.
Another potential source for your product is to find a distributor who would be willing to private label a product for you. You could get a very high quality product for a much lower price than if it had the name brand label.
The Second and Key Step is to convince the source you found to become your supplier.
Manufacturers and wholesale sources often have minimum orders that might be beyond your reach if you are just starting out. Online retailers, eBay merchants, and retail stores may be your best bet. Try to find a small store who is looking to expand.
But remember, you are dealing with a human being and they can be convinced to do business with you. Just be sure to sweeten the deal for them. One way is to offer the person you are dealing with at your new found source, a percentage of your profits from the products he supplies you.
Be sure to project it out for him. If he can see the benefit of working with you even though it causes extra work for him, you can be successful in making a deal.
You could offer him 20% of the profit from sales of his products. For example you could show him that you project to make at least $100 profit from each product, and you expect to sell 40 of them per month. The $4000 a month means an extra $800 per month in his pocket. You still make a nice $3200 profit for the month in this example.
On top of that, he will be ordering more products from his supplier and may be eligible for a higher price break from them. This way, his reward for the effort to work with you, is making money on both sides.
There are many benefits you can offer your potential supplier, but no matter how you look at it, the main thing it comes down to is MONEY. What's in it for your potential supplier to do business with you? If can you show him that, you have a better chance of making a deal with him and starting your online sales.
NOTE: When looking for suppliers around your city, don't go trying to impress the big stores with your $800 or even $3,000 extra income per month proposal. Try going to the little stores that are looking to expand their business, they are the ones that are usually more open to new opportunities.
The big stores are making hundreds of thousands of dollars per month in profits, so an extra couple of thousand would probably not impress them the least bit.
So now you see that by thinking outside the box, you open the door to many possibilities and increase your ability to make money online with your products.
About the Author:
Copyright © Melanie Burns
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