How to choose the best retail clients for your wholesale business
If you run a wholesale business, chances are you’re frequently looking for new retail customers to work with. Although it is likely that your main goal is to generate as many sales as possible, you should be strategic about the retail clients you on-board.
These relationships can affect your business’s time, finances and future growth; so choose them wisely! In this post, we’ll explain qualities and factors that you should look for when choosing retail clients, so that you can make the most out of your partnerships.
1. Find collaborative personalities – When deciding whether or not you’ll work with a retailer, pay attention to how they conduct business. Are they reasonable? Do they seem organized? These are all qualities that will lead to a productive partnership. If you work with retail clients who expect orders to be filled in an unreasonable length of time, or aren’t clear with instructions, then this may cause your business unnecessary stress. Finding retailers that are amiable to work with can make all of the difference!
2. Look locally – Want to cut down on shipping costs? Target nearby retailers! While we don’t suggest avoiding all retailers that aren’t in your area, working with retailers in your community can have its benefits. As we mentioned, you’ll save on shipping costs, but you’ll also be able to meet with these retailers in person if necessary. Plus, they may know other retail businesses in your community. Keep them happy, and receive referrals to other retailers looking for a wholesale partner!
3. Recruit consistent customers – You’ll get more out of a partnership if the retail company needs their orders filled periodically. Having consistent sales is key for a wholesale business, and you should be aiming to work with retailers that will have frequent orders. Although there is merit to finding customers who need big orders filled, it will give you peace-of-mind to have steady sales.
4. Make more by finding customers with diverse needs – If a retailer is eager to purchase your inventory, you may be able to sell them on additional products. Think about what they are currently purchasing, and what could accompany their order. This could help you get additional sales! If a potential client has a limited product offering, they may not need extra items, which won’t help your business develop.
5. Ask for referrals – Most likely, you’re looking to grow your wholesale business. This is why as a wholesale partner, you should look to work with retail businesses that are well-connected. If a potential retail customer collaborates with other businesses, they may be able to give you a referral. While it is necessary to work on marketing materials, getting referrals from happy customers is a great way to expand your customer base!
Increasing your customer base means that your wholesale business has the staff, tools and financing to take on additional business. It can be exciting to know that your wholesale business is flourishing and ready to take on new challenges, but make sure that you’re being tactical about retail partnerships. The relationships that you form with retailers can affect the flow of your business, so don’t be afraid to be selective!