This is a topic for most that have one or many products to sell. By now, most have watched the TV show Shark Tank. This topic comes up often. It is the challenge of having sales or getting sales with products. Wholesale products and working with distributors is often difficult for startups and even more established brands.
For brands that are looking to form relationships with wholesalers in the US, there are currently over 300,000 companies in the wholesale distribution industry. To approach the right types takes time. Brands should do their research or work with professionals to gain a better understanding. Consulting services are often obtained for this to avoid costly mistakes and make the proper steps.
The wholesale industry is very large in the US and very fragmented. Distribution channels are often geographically oriented. There are national distributors, regional distributors, and brokers who act more as a sales force and work often with specific markets.
The Wholesale Business
The wholesale business is about volume and lower manufacturing costs. the more a brand can buy, the lower the cost becomes. The higher of course then the profits become. A smaller business or startup often can’t negotiate great distribution contracts due to the volume. The sales volume often does not support it, yet. Regional and smaller distributors are a much better strategy.
It takes some time to find distributors and wholesalers. Brands and entrepreneurs should search the Internet first for wholesalers and distributors by product. If search engines do not yield enough results, research industry associations, directories, and other type of networks. Trade shows are also a great way to meet distributors and wholesalers. Trade magazines as well can be helpful.
Contracts and Agreements
Brands must pay attention to contracts and agreements. They have to be carefully reviewed. Companies must do their due diligence with distributor and wholesale agreements. All details should be reviewed and probably by an attorney to be safe. These contracts cover pricing terms, minimum orders, delivery schedules, return policies, and much more.
To learn more about distribution, one can contact an expert through consulting services to gain a better understanding and get help. These consultants can work with many types of companies and products. They help with online and traditional distribution tactics.