goWholesale

A wholesaler’s biggest task isn’t sourcing product or maintaining an inventory. It is working with a variety of manufacturers who can be contrary and demanding. But this doesn’t have to be an ordeal. The manufacturer is an important link in the supply chain, so you’ll have to put your thoughts into making the relationship work. This, or you’ll end up finding a product that you would just love to carry, only to run into problems with the manufacturers or a manufacturing representative.

If you want to sell product from a specific manufacturer, the first step is to contact them. Most companies have a sales rep that would be glad to talk to you about arranging a meeting. If you prefer to deal with business in person, try visiting their office. You’ll get brownie points for being ambitious and you might get to get a taste for the company’s way of running things.

Trade shows are also a good place to source products. Most shows have a large variety to encourage you to look around. If you’re not sure whether a trade show will have what you want to sell, call management and ask how many exhibitors they’ll have there, and what kinds of products they will have. Trade shows offer a chance for you to meet potential “partners” face to face and negotiate over details of your potential representation of their product.

The following are things to consider when looking into starting a business relationship with a manufacturer:

Are you really interested?
Do you have a real interest in carrying a large amount of product? Once you receive your first shipment, you’re stuck with it. If you’re not willing to work within the guidelines of the manufacturer, then it’s best not to begin working with them. This is going to be a long-term relationship.

Can you handle the numbers?
If you’re not prepared to inventory a large amount of merchandise in a months’ period, than you might be better signing up with a drop shipping company rather than a manufacturer. Manufacturers don’t do anything on a small scale.

Can they handle the numbers?
This question is related to the previous, but involves the manufacturer’s ability to continue to produce material for you to sell. Some small or medium-size companies prepare a lot of product to get their products out there, without really having the capability of maintaining a continuous supply.

Are they fishers?
Do they reel you in with one product, only to try to give you something different when you’ve signed a contract? There is nothing wrong with mixing things up a little, but some manufacturers are looking for a place to test market that new product, and you are a guinea pig in a suit. Use your common sense and don’t go against your own sales values. If you really don’t think you’ll be able to sell certain products, don’t be afraid to say so.

Could you be a factory-authorized dealer?
As a wholesaler, you can only sell what the manufacturer provides. But if you sign on to become a product’s “factory-authorized” dealer, you can twist that around. Manufacturers sometimes limit the amount of companies they allow to sell their product lines. This increases the value of the items while also leaving room to add warranty service to a sale. In order to secure such a role, you will have to demonstrate to the manufacturer an excellent sales history and an attitude that is just as excellent.