The bulk wholesale business is one of the most popular formats of business organization. This format can be highly rewarding, if done right. You can make use of various new technologies such as the Internet, email, social media tools, etc., to conduct your bulk wholesale business. However, avoid these 5 deadly mistakes:
1. Fixating on Location: Unlike retail business, you don’t need to pay for prime location if you are running a bulk wholesale business. However, be careful about choosing the location in order to store your goods properly. If you have more than one warehouse and wholesale office, then you should be careful about warehouse location for the purpose of optimizing transportation costs.
2. Ignoring Your Niche Market: As a bulk wholesaler, you need to have expert knowledge of your target market. Before starting your business, you should carry out proper survey of your target market and should research it properly. The market dynamics keep changing, therefore, it is necessary that you periodically update your knowledge about the market. You need to carefully define your niche market in order to fine tune your sales strategies. If you ignore the dynamics of your market, you may run the risk of losing your investments.
3. Ignoring Your Product: As a wholesaler, you are not only required to have expert knowledge about your market, but also about your product. You should know the proper specifications and usage of the product. The better you know your product, the more successful you will be in marketing it. Better knowledge about your products will also help you to create rapport with your clients.
4. Too Much Diversification: Bulk wholesaling is a capital intensive business. Though it pays to diversify your business to smooth out the seasonal and other cycles, but excessive diversification will lead to loss of specialization. You may also face difficult time deciding which goods to stock. You should only stock those items which you have thorough knowledge about.
5. Ignoring Terms & Conditions: For becoming a successful bulk wholesaler, you need to have efficient circle of suppliers. At the very same time, you should also be very careful while negotiating terms and conditions of the contract with them. If you are not careful then you may end up paying high costs such as exorbitant transportation expenses. Such expenses may eat into your profit margin.
Like any other business, bulk wholesale business also requires careful planning and accurate execution. If you keep the above points in mind, you should be able to have a thriving and rewarding wholesale business.