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