So you want to start a wholesale distributorship. Whether you're currently a white- collar professional, a manager worried about being downsized, or bored with. When becoming a distributor, you will generally sell to three main sources. be ready to answer any questions or foresee potential difficulties. The math portion of sales is never the fun part, but it may be one of the This wholesale price is usually about half of what the end customer.
wholesaler? become Ready to a
If your credit history is less than stellar, you should expect that you'll encounter significant difficulty getting a bank on board with you, so you might try private investors instead.
Start smaller and build bigger. Don't have unrealistic expectations for your first months in business. It will take time for your distribution company to register on the map, and you'll need to differentiate yourself from your competition through lower prices or better service to attract and maintain your market share.
The most successful wholesale distributor knows what his competitors are doing and figures out a way to do it better. Continue to build and grow your distribution business until it becomes profitable. Once it does, you can start to look at cost-cutting measures you can take to make it even more profitable. Use grass-roots advertising at first to get out the word about your business. Stick with an industry you know already.
The smoother your learning curve, the faster you'll get your business up and running. Beware of scams on the Internet promising big earnings in a short period of time. To become a wholesale distributor, you'll have to put in long hours and hard work to attain the kind of success these sites promise.
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Tip Stick with an industry you know already. Warning Beware of scams on the Internet promising big earnings in a short period of time.
About the Author This article was written by a professional writer, copy edited and fact checked through a multi-point auditing system, in efforts to ensure our readers only receive the best information. Depending on which text editor you're pasting into, you might have to add the italics to the site name.
How to Become an Electronics Distributor. A distributor is mostly concerned about:. The reasoning behind the first two points is obvious. Retailer or distributor, profits and costs are paramount. Scalability is especially important if your product is relatively inexpensive.
Your ability to supply multiple products is also important, because distributors care about administrative costs. Distributors like to sell multiple products from individual suppliers for the same reasons retailers like to buy from distributors instead of from dozens of individual suppliers.
So before you pitch a distributor, put yourself in their shoes. They'll be asking themselves questions like:. The key is to remember that distributors evaluate your product using criteria different from your eventual customers'. No matter how exciting or innovative the product is, if your company will be a pain to deal with and, more important, the distributor can't make a profit, they won't buy from you. Think hard about why you're struggling to place your product with individual retailers. Most products that are distributor worthy are relatively easy to place with individual retailers; the reason you go to a distributor is to harness their power of scale.
So if you can't land many retailers, you're probably not ready to pitch distributors. Sell directly to customers via your website Sell to retail stores, which then sell to customers Sell to a distributor, which sells to retail stores that then sell to customers. A distributor is mostly concerned about: The level of profit they can make on your product The cost of stocking and fulfilling your product Whether your product is scalable Whether you sell multiple products.
They'll be asking themselves questions like: How much profit can we make off his product--both per unit and in total? Can we make a better profit selling his product compared with selling a similar product? Will his marketing efforts help drive our sales? What inventory levels will we need to maintain?
How will stocking and fulfilling his product affect our cost of distribution? Are customers asking for a product like his?
How to Be a Wholesale Distributor
Some of the first things you should think about when becoming a distributor is what kind of distributor you would like to be and choosing the distribution channel . Sometimes you'll find that selling directly to consumers may not be your forte or They will talk about your products to their customers and hopefully spread the. What you're looking for are minimum order requirements and their wholesale unit prices. To get the best responses, be honest about what.