| The wholesaling industry is lucrative, | | | | 3. What do their warehouses look like? |
| but with a lot of entry barriers. Hence, | | | | Are they in good condition? |
| you can be sure that those who have | | | | Its important to take a look at the |
| managed to obtain success, even | | | | wholesale distributors warehouses', if |
| small-sized businesses, are reliable and | | | | it has any. If the facilities appear to |
| trustworthy. Thus, all of them are | | | | be neglected or run-down, such |
| capable of fulfilling whatever needs you | | | | conditions indicate that the distributor |
| have; only one of them however can be | | | | is not that particular about the quality |
| considered the best. | | | | of the goods it distribute. Obviously, |
| 1. Characteristics look for in a | | | | goods of inferior quality are not |
| distributor | | | | sellable. If possible, know if it keeps |
| Is it a legitimate business? | | | | an accurate inventory of its goods as |
| Do not succumb to temptation and | | | | well. If you notice any discrepancies, |
| transact with an illegal distributor, | | | | this simply means that the business is |
| even if he offers very attractive rates. | | | | not being run efficiently. Thus, its |
| If you feel shy about asking the | | | | logical to assume that the distributor |
| legitimacy of the wholesale business, | | | | may not be an efficient partner to deal |
| you can visit the nearest government | | | | with as well. |
| office to your home and office, and | | | | 4. Is there a large network of contacts? |
| inquire if the wholesale operator is | | | | A wholesale distributor will enjoy more |
| truly licensed by law to do business. | | | | sales with a large network of contacts. |
| What are the advantages and competative | | | | As a client, you will also benefit from |
| benefits? | | | | dealing with a distributor with numerous |
| Its better to transact with a | | | | contacts to depend on. More contacts |
| distributor performing better than its | | | | lead to more choices, and eventually, |
| rivals than one who isnt. You dont | | | | better rates. The distributor will gain |
| necessarily have to transact with the | | | | access to more manufacturing companies, |
| biggest distributor the big companies | | | | and therefore be able to provide you |
| usually have high volume requirements | | | | with lower prices for the goods youre |
| before they agree to any dealership but | | | | interested in selling. |
| at least with a company that has strong | | | | The network of a wholesale distributor |
| sales over the years as proof of its | | | | is not solely made up of manufacturers |
| capabilities. | | | | and retailers alone. A smart distributor |
| Dealing with an inexperienced wholesale | | | | is aware that its also important to |
| distributor can be disastrous; as | | | | build strong relationships with the |
| someone new to the business, a | | | | people it indirectly transacts with, |
| distributor is more likely to commit | | | | like retailers, labor organizations and |
| faults, act inefficiently, and charge | | | | public officials. If its possible, try |
| higher fees because of higher | | | | observing how the distributor interacts |
| operational costs. An experienced | | | | with the aforementioned individuals. |
| distributor, on the other hand, not only | | | | Keep in mind that when we say strong |
| has lower operational costs, but also | | | | relationships, this doesnt mean |
| may have tax-exempt status that leads to | | | | relationships based on bribery and |
| lower market prices. | | | | corruption is acceptable. It is not! |
| 2. Evaluate their financial situation | | | | 5. What are their product policies? |
| A wholesale distributor thats burdened | | | | What happens when delivery of goods are |
| with debts, unable to collect its | | | | delayed? What happens if the delivered |
| accounts receivables, and with low cash | | | | goods have been damaged? Knowing the |
| assets, is not the ideal type to | | | | product policies beforehand will give |
| transact with. Such distributor may be | | | | you an idea if the distributor will act |
| forced to increase its rates to be able | | | | fairly towards you in future dealings. |
| to handle its debts and improve its | | | | Make sure that any conditions he does |
| financial situation. | | | | specify are included in your contract. |