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