6 Reasons Why Wholesale Marketing Is What You Need
We are living in the age of wholesale marketing.
The digital revolution has elevated the phenomenon of competitive pricing to a global level. Products and prices are now freely accessible to anyone with a handheld device. With search engine algorithms, pricing comparisons of similar products and services is just a matter of a single click.
It’s easier for consumers, now, to simply go online and compare product specifications and service features, sort them according to price, and contrast competing prices. The exclusive access to information many business owners enjoyed is no more, thanks to the internet.
So where does wholesale marketing enter the equation? What exactly is wholesale anyway? These are some of the crucial questions we need to consider. Simply put, wholesale is the antithesis of retail. Whereas retail’s focus is on selling individual products to standard customers, wholesale is the sale of products – usually in bulk or at lower prices – to retailers and other wholesalers.
There are many reasons why you should opt for wholesale in your business ventures or consider investing in wholesale. We present six of them here:
Reason 1: Save more, make more!
If you were to summarize the whole process of conducting business, you can call it a series of maximizing profits and minimizing expenses to save more and spend less. That’s how businesses grow and that’s how you get rich. It would be absurd to claim that wholesale lets you make money and save money (even though it does) because every successful business lets you do that. Why, then, should you go for wholesale. Well, the reason is simple. With wholesale, you save more and you earn more.
Let’s get to the point. Wholesale cuts out the middleman. It’s as simple as that! Instead of buying from a retailer, you buy straight from the manufacturer. Why pay for the middleman’s profit out of your own pocket when you can avoid it? Some may hesitate because, on the surface level, you’re spending more. Whereas earlier you bought 10 items, you’re now buying 100. However, when all is said and done, and it comes to the final estimates, you may notice up to fifty percent decline in the spending. How’s that for a slice of the profit?
Reason 2: Hassle-free branding opportunities
If you’re looking to invest in wholesale, it should not come as a surprise to you that many giant retail brands do not manufacture their own products. Manufacturing and selling on a massive scale are two entirely different beasts. This is why you rarely, if ever, see organizations which manufacture as well as sell on a large scale.
Although manufacturers and retailers rarely unite, they continue to form a symbiotic relationship in which one benefits the other. The retailers provide revenue to the manufacturers and enable them to sustain and grow their operations. In turn, they receive low-cost hassle-free opportunities to brand pre-manufactured goods on which they make ten times as much profit.
Reason 3: Enhanced industry knowledge
Knowledge is power in business. And wholesale has that empowering characteristic. How, though? Once again, it does that through eliminating the middleman. When you buy directly from the manufacturer, you’re not just acquiring the goods you requested. You’re acquiring the knowledge of their products and processes. You’re able to have first-hand experience of how those products are created and some of the problems and challenges manufacturers face when developing the products.
But why is that knowledge empowering? As a retailer, it should be none of your concern how those products are created, right? Wrong. As the degrees of separation are removed between you and the manufacturer, you have more power to influence outcomes by compelling the manufacturer to cut supply chain costs. The other advantage is that enhanced industry knowledge may enable you to expand your operations in the future, to incorporate manufacturing into the range of operations.
Reason 4: Greater leverage to bargain favorable prices
As you continue to make and save more money through wholesale (see step 1), your business expands. And as your business expands, your supplies depend on you more, since you’re buying more. And, sooner than you know it, you begin to exercise considerable influence on the manufacturers, their prices and policies. You can use that leverage to negotiate more favorable prices that will enable you to increase savings further and, as a result, expand your business even further.
This also affects the influence you exercise with the community as a retailer. Big retails can create a more loyal relationship with their clients – relationships that are built on trust and quality. This is why established retailers can charge exclusive prices for their products without losing their customers.
Reason 5: Supplier networking
Interacting with wholesale suppliers is the business equivalent of hanging out with the big boys. You increase the number of business contacts by negotiating with various manufacturers to settle on whoever suits you the most. As you embark on the search for the perfect manufacturer, you make may more acquaintances on the way.
By gaining access to competing suppliers, you can use the resulting network to negotiate favorable prices. And it’s not just limited to discounts. You can get exclusive access and various learning opportunities as well, not to mention the range of available choices when it comes to choosing the manufacturer. It’s the same as considering a range of retailers to settle on the one to choose. The only difference is that the former is much more low-cost than the latter.
Reason 6: Diversification opportunities
When you save more, associate with various suppliers to gain industry knowledge, and gain leverage on price negotiation, what do you ultimately get? You get the opportunity to diversify your operations. You receive the chance to add more products to your catalogue. You are empowered to venture into unexplored territories for your business, come up with innovative solutions and, more importantly, expand rapidly.
These diversification opportunities are not just limited to the product front. You can diversify in operations and services. And it is here that enhanced industry knowledge is crucial. With these and other benefits, you won’t be able to resist wholesale marketing as the ultimate option for your business investments.