Wholesale can be a headache. Selling your product to retailers is another \u00a0hassle, especially when you do not know where to start. Luckily for you, we have\u00a0found these awesome tips on how to sell to retailers when you are a \u00a0wholesaler.<\/strong><\/p>\n The math portion of sales is never the fun part, but it may be one of the most important. Let\u2019s get down to the basic rules.<\/p>\n It\u2019s standard to sell wholesale items at 2.5X your production costs. This wholesale price is usually about half of what the end customer pays, as it\u2019s generally a safe assumption that the retailer will mark up their cost 2X when pricing your product for customers. It\u2019s also common to offer a \u201csuggested retail price,\u201d so you can be sure you\u2019re offering a price that makes sense for you, the retailer and the customer.<\/p>\n For example, if your product costs about $2 to produce, you might sell to retailers at the wholesale price of $6, which would make your suggested retail price $12. Make sure that when calculating those production expenses, you\u2019re also including the cost of freight, marketing, and other overhead costs.<\/p>\n You may also want to enforce a minimum order rule to achieve selling goals. Meaning, wholesale buyers must buy a minimum amount of your product (or dollar amount) when placing an order. To create incentive and minimize the risk to the retailer, you can offer no minimum order on their first order. After that, however, it is important to stick to a minimum order regime.<\/p>\n As part of that, come up with an overall wholesale pricing strategy. Create a formula for orders: if your wholesaler buys 100 units, they pay $8\/unit and if they order 500 units they pay $6\/unit and so on. The idea behind this kind of volume pricing is to incentivize large orders that increase revenue. Start simple and see how this system works for your business.<\/p>\n Again, make sure you are taking into account all of the expenses associated with producing your product so you can be sure to account for them when you are calculating price. Go ahead and make a good old-fashioned list to be sure you are pricing your products fairly\u2013\u2013to both yourself and your customer.<\/p>\n Do your research. Who is your target customer? Where do they shop? What stores are stocking competitive products? What region are you looking to sell in first?<\/p>\n Often, the best way to answer these questions is to simply visit stores\u2013\u2013walk around. Where do you envision your products stocked on their shelves? Look at the competition. How does your packaging compare? Will you need\u00a0a lot of\u00a0shelf space ? Does\u00a0your product fit into the store\u2019s existing assortment?<\/p>\n This varies by industry and by individual retailer, but it\u2019s important to remember that different stores often have different buying strategies. For instance, at a smaller boutique, you may be dealing directly with the storeowner. With a chain of stores, however, you may be working with a dedicated buyer.<\/p>\n These buyers may make purchases on a seasonal schedule, or prefer to place orders at large industry-wide trade shows. Perhaps they want to place a batch of orders before the high season, all set to ship on different dates. Be prepared to accommodate these kinds of schedules.<\/p>\n Line sheets are a must for anyone who wants to sell to retailers. This will help you share informations about your product and your company as well as showing nice pictures of your products.<\/p>\n When selling wholesale, you do not charge sales tax on the order, because the retailer will tax the customer upon purchase. But it is important to obtain tax id documentation from your retail buyers.<\/p>\n Tax laws vary between states, but it\u2019s a general rule-of-thumb to keep a copy of your retailer\u2019s resellers\u2019 licenses, and only sell wholesale to those who have them.<\/p>\n In a networked world, it always gives you a leg up to have a rave review on your side. Think of it like choosing a restaurant to dine at. You will probably scan Yelp and pick a restaurant with a good review rather than risk a mediocre meal at a restaurant with no reviews. Apply this same principal to your products. Be ready to show your buyer customer testimonials or press about your product.<\/p>\n If you are just starting out and don\u2019t have any reviews yet, offer free samples to relevant companies or stores and ask for their feedback. A good review from a reputable source can make all the difference in a competitive market.<\/p>\n You may be thinking that because you\u2019re selling wholesale and your customers are retail stores, you don\u2019t have to invest in marketing to end consumers. That\u2019s where you\u2019d be wrong.<\/p>\n At the end of the day, retailers buy products that they think will sell. The more your product is in demand from consumers, the more likely it\u2019ll be that a retailer decides to stock that product. Building your brand and marketing directly to consumers is extremely important.<\/p>\n Most noteworthy, rejection is part of learning how to wholesale. Your product won\u2019t be the right fit for every retailer you approach, and that\u2019s okay. It may take a while before you get your first big order. Prepare yourself for this as you set out into the field.<\/p>\n A rejection might have to do with any number of things outside your product. The store might be going in a different direction, or they may be overstocked and not looking to add new lines.<\/p>\n Perhaps the store itself isn\u2019t doing well, or they have strict buying guidelines (e.g. they only buy at trade shows). Don\u2019t beat yourself up over every rejection\u2013\u2013it\u2019s part of getting the hang of wholesale.<\/p>\n In conclusion,\u00a0You always want to keep your eyes on the horizon and stay abreast of industry changes.<\/p>\n Go online and check out your competition. Read reviews about related products. Attend trade shows, webinars and conferences about your industry. Staying \u201cin the know\u201d will give you a competitive edge and drive creativity.<\/p>\n Staying up to date on trends keeps your business (and your bank account) growing.<\/p>\n Hope these tips will greatly help you.<\/p>\n1. Pricing: Where to Start & What to Keep in Mind<\/strong><\/h3>\n
2. Pricing:\u00a0Establish buying\u00a0rules<\/strong><\/h3>\n
3. Set Your Target: Figure Out Which Stores Should Stock Your Products<\/strong><\/h3>\n
4. Understand How Retailers Buy<\/strong><\/h3>\n
5. Have a great line sheet<\/strong><\/h3>\n
6. Taxes: The Good, The Bad and the Ugly<\/strong><\/h3>\n
7. How to Stand Out from the Competition<\/strong><\/h3>\n
8. Don\u2019t Forget B2C Marketing<\/strong><\/h3>\n
9. Prepare for Rejection<\/strong><\/h3>\n
10. Stay Up to Speed with Industry Trends<\/strong><\/h3>\n
click here to create your\u00a0line sheet today<\/a>!<\/span><\/h2>\n