If you are running a wholesale buying business check out these simple mistakes to avoid to help you keep your business running smoothly and to help you boost sales.
Not Listening to the Market
One of the biggest mistakes a reseller can make is not listening to the market and current trends. Whilst trying to ‘cash in’ on popular items like iPods and iPads can be difficult (competing with much bigger resellers can make it tough to make a profit) you should always listen to trends and what is selling fast. If you don’t keep up to date with news and what products are hot, then you may be missing out some serious selling and your competitors are likely beating you to the products. Ensure you look at what is popular – perhaps it is film merchandise or a seasonal product? Either way, stay on top of consumer demand and try to cater to it.
Not Building Rapport with Suppliers
One of the best ways you can boost profit for your wholesale business is by negotiating with wholesale suppliers. However you can only negotiate with wholesale suppliers if you build rapport with them and have a history of buying from them. Approaching a wholesaler for the first time and automatically assuming they’ll give you the best rates won’t help you to boost your profit margins. Instead focus on building a relationship, make repeat purchases and make an effort to personalise the wholesaler/reseller relationship.
Not Listening to Customer Demand
Whether you have an eCommerce site or you sell products on a market stall, one of the biggest mistakes you can make is not listening to your customer base. While it may be tempting to just ‘go with your gut instinct’ and buy what you think will sell, it’s crucial to listen to your customers and to keep up with their buying patterns. If you keep getting requests for hairdryers, stock hairdryers! You could even send out questionnaires to your customers every quarter to ensure you are keeping up with what they want.
