In some circles, selling your own products wholesale gets a bad rep. Naysayers have a simple thought process: why would you sell these products, ones you have spent so much time, resources, and passion for creating, at a significantly lower bulk price per item?
Yet going the wholesale route is beneficial for several reasons. First, it’s an easy way to make multiple sales in one go. Expanding into other stores and territories helps increase exposure. Third, it assists your business in building credibility and trust. Ultimately, it can also grow your company exponentially.
However, before you can start experiencing those advantages, you’ll need to read the following to learn how to maximize profits when selling wholesale products.
Pick your pricing
Before anything else, you have to select the right pricing structure when selling wholesale. Obviously, you want to make as much money as possible from your products, and you’ll initially be hesitant to lower your prices drastically.
Yet you also have to think about it from a retailer’s point of view. They still have to make a profit. They also have other expenses to cover, which means they cannot afford to purchase your product at, say, 90% of its RRP – that extra 10% isn’t going to cut it.
With that said, you also have to avoid selling your product at a too low price. Of course, 50% of your RRP is often the sweet spot, but you might be able to squeeze more if your product has the right combination of quality and reputation.
Shipping that makes sense
If you’re only selling wholesale to local stores, this is good news in terms of delivery – you can simply transport orders via your own mode of transport. However, the process is a different beast when sending products across the country or even internationally.
After all, this isn’t just a case of sending a single product here or there. You could be shipping dozens, hundreds, or even thousands of products to one destination. This means you have to think carefully about your shipping options; otherwise, the price could rip through your budget.
For bulk orders, a wise choice can often be less-than-load (LTL) freight shipping; for the uninitiated, LTL freight shipping is, as the name suggests: shipments that don’t take up the full load of the freight. In fact, they are included with a vehicle that is already scheduled to make a journey, which significantly reduces delivery prices for you.
Build a list of stores to contact
Can retailers initiate contact and message you first about wholesale opportunities? This is certainly a possibility, but it’s unlikely if you’re just starting out in this area. As a result, you need to build up a list of stores to contact and see if they’ll be interested in stocking your products.
First, determine what type of retailers will stock your products. Then hop online, do a search for businesses in appropriate fields, and compile a list that includes store names, contact details, and website addresses. Remember the more effort you put into this aspect, the more potential business you will generate, and the bigger the profit you’ll ultimately make.