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Wholesale is an essential part of the supply chain. These companies distribute products to other businesses, bringing goods one step closer to the target customer. Wholesale marketing necessitates an in-depth understanding of the B2B (business to business) marketing process. While both B2B and B2C (business to consumer) modules involve exchanging goods and services, B2B distribution exists on a much larger scale.
Most small businesses work predominately in the retail component of supply and demand. This involves selling and distributing goods directly to the end consumer. Retail sales differ from wholesale in this way, as the distribution process stops with the end-user transaction. The B2C structure dispurses singular goods to numerous individual customers, while B2B marketing provides bulk products directly to the retailer or small business.
As wholesale distribution sells to a group, there is much less competition than among retailers. Of course, your wholesale marketing strategy is still an essential part of your business plan. Carefully managing your marketing efforts helps to ensure your business is continually expanding. These tips are sure to help get your wholesale company growing in the right direction.
Establish Your Retail Network
Investing in your business relationships is essential to building your wholesale network. This involves understanding where your products are wanted and working to expand your reach. Having a secure relationship with your wholesale partners helps to deliver higher value in product exchange. Keep track of your current network connections and consider hosting events to expand your community reach.
Do not underestimate the effectiveness of cold calls. Consistently visiting untapped retail stores is an excellent way to build community rapport and grow your wholesale network. Make it a point to visit at least 10 new retail stores each week and keep a log of the status of each interaction. Remember to follow up after making an in-person connection. Bring product samples, pamphlets, and a business card for each retail location to get an idea of your offerings.
Invest in Existing Customers
As a wholesale marketer, you want to see high rates of return customers. Financially, it is much more practical to retain an existing customer than to gain an entirely new one. Offer discounts for bulk purchases and repeat orders. Additionally, invite your most loyal customers to refer your business to other retailers. Incentivize referrals with free products, discount orders, or a cash reward. Consider utilizing email marketing as a way to keep your current customers updated on business happenings. You can also use email campaigns to promote exclusive sales, holiday promotional codes, and customer loyalty programs
Offer Buyer Incentives
If you are breaking into the market for the first time, you may encounter reluctant buyers. Retail stores with existing wholesalers may hesitate to accept goods and services from a new distributor. Research your competitors’ prices and strategies and work to counter their rates. If you observe a lack in your competitors’ marketing and sales structure, position yourself as an asset in that regard. Offer “buy-one-get-one” and limited time promotions for new customers to motivate a purchase.
