The wholesale clothing business is believed to be one of the growing trends in business today. A large number of businessmen and women are now redirecting their attention to focus on starting wholesale businesses of their own. But why is it that people would want to be wholesalers if they could be retailers or dealers? What is the difference between a wholesaler and a retailer?
Though both are the same in terms of selling, there is a huge difference between a wholesaler and a retailer. As a wholesaler, you’ll be targeting the retailers or dealers and wholesalers; whereas a retailer, you’ll be focusing on the buying crowd or the consumers as targets. This is a great advantage because if you choose to act as a supplier for these retailers and dealers, you’ll be serving as a bridge to get the goods from manufacturer to retailers and won’t be needed to take on the role of selling it to the consumers. But as I’ve said, there are wholesalers that deal with both retailers and consumers, and there are some who deal with wholesalers. So it’s up to you to decide what type of wholesaler you would want to be.
Another great advantage of being a wholesaler is the amount of profit you can bring in. Unlike retailers, wholesalers sell their goods on bundle which means more profit. Retailers, on the other hand, sell their goods separately from consumer to consumer. Wholesalers may also benefit from having stable connections of retailers, from which are very popular with consumers and other retailers and dealers alike, whereas retailers depend mainly on the success of their location to bring in customers.
These are some of the possible reasons why businessmen and women would rather focus on starting a wholesale clothing business rather than a retail business. If you’re thinking of venturing to a wholesale clothing business, here are some factors you need to consider before you make some plans on opening your wholesale business.
What kind of Wholesaler would you be?
As I’ve said earlier, wholesaling involves a lot of process. The common process is manufacturer, to wholesaler (which is you), and then to the retailers and dealers. But there are wholesalers who sell to the consumers and then there are some who sell to other wholesalers. It’s your decision whether you want to sell to the public or wholesalers.
Who are your clients?
After choosing the type of wholesaler you’ll want to be, your clients would be your next priority. Your clients are your source of profit. It’s your duty to distribute the goods to your clients, and then it’s up them to distribute your stocks to the consumers. One way of keeping clients is to keep a long list of what you have at the moment, and also, a separate list of those you have failed to have. Keeping a list of clients you failed to gain is as important as keeping your own list of clients. If the time comes when you would be needing another set of clients, you could talk and ask them to be your client again. You might be surprised when you finally have them this time.
When you are new in this kind of business line, it is wise that you should first target clients that are near to you. It saves time and money on shipping (if you don’t have your own delivery system). It is also important that you talk to your dealers in person rather than have your secretary or voicemail talk to them. This is important so as to build the necessary relationship between your business and theirs.
But before entering an agreement with your client, make sure that all legal documents that permit them in selling your stocks are arranged properly. This is to ensure security on your business.
Where would you store your stock?
Keeping an emergency stock is very important. It is important that you keep a stock of all of your products in case item shortage or emergency orders from your clients come by. Lack of stock is one major cause for a lot of wholesale businesses to fail. This is because of “Reliability”.
Reliability is what your clients would want with wholesalers. Unable to provide them their stocks on time could cause them to switch to other wholesalers that can provide with the services they want. So keep in mind to find a place to store your stock. Make it as close to your clients as much as possible, keep it updated as much as possible, and keep some of your in-demand stocks for emergency purposes.
Could you provide them some advantages?
Providing an advantage perhaps is the most important aspect that clients are looking for in a supplier, and one of those advantages is providing credits. By offering favorable terms of payment and perhaps a higher credit limit than that of your competitors, you could attract potential dealers to your business.
It is normal that some clients cannot pay upon delivery of their stocks so wholesalers typically put up credits to provide their clients the advantage of getting their stocks today, and pay for it tomorrow. Being able to provide them an advantage where others could not is a huge plus over your competition.
But keep a close watch of what you’re trying to provide them. Give them benefits that do not jeopardize your own business. Keep this in mind and you’ll run a successful wholesaling business.
These things are some of the important things that you should think about before opening your wholesale clothing shop. I didn’t include the location for your business because location rarely is considered in this line of business. The best location to think about is where your clients are close by. However, keep a good distance away from foot traffics.
Let me give you another tip: If you are new to this kind of business, or in any kind of business, it is advisable that you seek some advice from someone who has an experience handling a wholesale clothing business.
You can learn a lot from other’s experiences in handling a business. You can learn how to maintain your business properly, or learn how to manage your profit, or better yet, learn from their mistakes so if you every encounter them, you’ll know what to do and how to react on it.
