How to Choose the Right Dealers for Your Wholesale Business
If you have just started your wholesale business, then it is essential to find the right dealers. They should not only be willing to stock your products, but also willing to sell them at a blistering pace so as to take your business to the next level.
Here are some points that you should bear in mind when choosing your dealers.
- Check Out the Dealer's History. Check out the background of the dealers whom you are planning to appoint. Their background should indicate that they have been honest and clear in their dealings.
A dishonest dealer can spoil not only the products reputation but also your own.
- Know Your Dealers' Financial Capability. Your dealers should also have the capacity to invest in their dealerships. They should also have a backup plan, in case the time that it takes for the business to pick up turns out to be longer than their original estimate.
You could also ask for a security deposit, so that your money isn't stuck in limbo if they falter in their payments.
- Make sure your dealers are committed. Your dealers should be committed – and motivated! — to sell your products. Offer them decent profit margins and incentives to keep them interested in achieving that extra reward.
Your dealers should also have a preference to sell your products over any other others, especially similar ones.
- Make sure you have an exit policy. In case your business relationship doesn't work out with a particular dealer for any reason, formulate an exit policy so that you can part ways amicably with the least financial damage.
Follow the above points before and after choosing your dealers. If you do, then the whole process – from manufacturing to distributing to retailing — will operate like a well-oiled machine.