As commerce flourished in our country, many entrepreneurs simply forgot various methods of making money, including the wholesale business without investments. At the dawn of the emergence of a market economy, the country was flooded with lively young people who called themselves brokers. Many exchanges appeared where you could buy whatever your heart desired, but only in large quantities.
The broker's job was to bring the buyer and seller together, for which he received his honestly earned commissions. This type of business is undeservedly forgotten today. Meanwhile, a wholesale business without investments is quite capable of providing a decent income to anyone who wants to engage in such financial transactions.
How to start a wholesale business without investment
How does the business scheme work? Very simple. You advertise on the Internet (for free) that you have a large batch of some product at an attractive price. Almost immediately there will be interested people ready to make a purchase. Your task is to quickly find a supplier, agree on prices, cargo transportation issues, and prepayments.
Price negotiation is an issue that should not be discounted. After all, it is based on the supplier’s price that you increase the margin (the difference in cost that will be used to pay for your services). You can sell a variety of things in bulk from scratch, from timber to caviar or fruit.
First steps to take
Before starting a wholesale business from scratch, you need to analyze the market and identify the most liquid (quickly selling) products. How to determine which wholesale options will be the most popular? Here it is not at all necessary to deeply study the market of various offers. At first, you should focus on food products: sugar, flour, butter, canned food, baby food. You can make good money on all of these products from scratch if you find an inexpensive manufacturer.
Choosing a Niche
Then you need to decide in which niche you will start your work. There are several types of business:
- Work with wholesale quantities of goods, mainly small wholesale. Roughly speaking, the job is to bring the seller and buyer together and control the transfer of the acquisition and mutual settlements. If you work according to this scheme, then it is quite possible to run a wholesale business without investment.
- The next type of wholesale is practically no different from the first option, except that you are engaged in the sale of specific products. For example, you are looking for sellers and buyers only in the field of baby food or canned meat. The advantage is that you will be able to thoroughly study the market for certain goods and will not waste your energy.
- Medium and large wholesale quantities are supplied directly by manufacturers and at fairly low prices. In this segment, it is necessary not only to look for a buyer, but also to coordinate issues of transportation and prepayment. It is best to enter into an agency agreement with the company that produces the product.
The easiest way is to start working with small wholesale parties: starting work from scratch, this will give you the opportunity to acquire negotiation skills with both parties to the transaction and determine for yourself an algorithm for receiving remuneration.
After this, you need to decide which group of products you will work with. To do this, you need to take into account the following subtleties:
- It is preferable to focus on the industry or product in which you are best versed. For example, if you graduated from a forestry engineering institute, then there is a reason to pay attention to the products of the woodworking industry. However, nothing is impossible for an interested person. And without professional training, from scratch, you can learn to navigate the nuances of a particular product.
- The second option is to study the local market. Determine the demand for a particular product. Pay attention to the pricing process, ask from which region everything comes to the local market. Then everything is simple: you are looking for a manufacturer who would sell similar products cheaper, and offer these options for wholesale to potential buyers.
- When choosing groups of products with which you will work, you should not focus on exclusive products that will certainly be in demand among a limited number of consumers. Perishable and seasonal goods will also require a more careful approach, so when choosing products for sale and business development from scratch, it is best to choose those that are in demand at any time of the year.
Do you need initial capital to start a wholesale business?
In order to enter the wholesale business from scratch, absolutely no financial investment is required. All you need at first is the Internet, a telephone and the desire to work and earn money. Skeptics can moan as much as they want about the availability of a website, occupied niches and lack of start-up capital. The good thing about a wholesale business is that it doesn’t require any financial investment to operate. It all depends only on your ingenuity and ability to conduct dialogues with people.
Instructions
Find out current customer purchasing prices and other delivery conditions. It doesn’t matter that you come to clients without the intention of concluding an agreement. Now you are doing reconnaissance. You can introduce yourself as a representative of a new company that plans to serve this region. Ask what customers are unhappy with. You will definitely collect some information. Some people ask for a price list and don’t tell you anything. Make sure you communicate with the head of the company. Say that you can give good conditions, but you need to estimate the approximate volumes.
Find suppliers, calculate and estimate margins. Based on the information collected, you can roughly estimate the volume of purchases. This will be needed for negotiations with suppliers. You need to get better conditions from them, even though you are still in preliminary negotiations.
Make an offer to your clients. After the 2nd step, you know where they cooperate with other suppliers. Create a package of commercial proposals that will allow you to stand out from similar ones. Take advantage of your competitors' weaknesses. If potential customers complained about delivery times, you can focus on the quality of this service. It will not be easy for competitors to restructure their work.
Sources:
- how to work with wholesale
The creation of new warehouse complexes is a natural step towards the development of a trading or trading and production company. Having wholesale warehouses in the regions where your branches operate or dealers operate is convenient and profitable. Therefore, if you, as the head of a representative office opening somewhere, are entrusted by the company’s management with organizing a warehouse, do not be surprised.
You will need
- - detailed business plan for a new wholesale warehouse;
- - a building (which you can rent or build yourself);
- - warehouse equipment ordered in accordance with the calculations made;
- - staff (5-10 people);
- - package of permitting documentation.
Instructions
Collect all information on sales in a given region, understand the dynamics of their development. Be sure to consult with local or representatives of your company. Before taking any steps towards the warehouse, draw up a plan with the most detailed financial information.
Decide what location for the warehouse will be, and only then look for a ready-made building for a warehouse complex or land for it. The supply chain with all the details must be in your head - only then can you understand the strategic feasibility of a particular location. If you want to rent a premises, make sure that it is suitable for setting up a warehouse of the type you require, that is, a wholesale terminal.
Use the services of a consultant in the field of warehouse logistics if you are not a specialist yourself. Having a building (built or rented), start working by organizing the warehouse space - divide it into sections (loading and unloading, receiving area, storage area and picking area). Calculate what kind of warehouse equipment you will need - to do this, use complete information about the range of goods and materials you are dealing with and their weight and size characteristics.
Recruit a team of warehouse workers, of whom there are quite a few employed in a wholesale warehouse. However, the main thing is the warehouse manager, who will then himself look for people for further work. You will need five people according to the most conservative estimates; sometimes the warehouse complex is serviced by up to ten people.
Helpful advice
Do not treat warehouse work as a secondary matter and trust it only to professionals; try to use all modern methods of warehouse management (including a WMS system).
The access roads to your wholesale warehouse should be as convenient as possible and always free, so it’s better to set up a warehouse on the outskirts of the city so that your transport does not sit in traffic jams for hours.
Sources:
- Organizing a wholesale warehouse: something you shouldn’t be afraid of
It is unlikely that you will be able to start a wholesale trade business with small financial investments. However, competent organization of such a business will bring large and stable profits.
You will need
- - start-up capital
- - stock
- - freight transport
- - promotional events
- - software
Instructions
Register your future enterprise. An individual entrepreneur without forming a legal entity is a form of ownership from a taxation point of view. However, if you plan to enter into large contracts with factories and manufacturers, a legal entity such as a limited liability company is preferable. Choose a convenient warehouse. When choosing a storage facility, take into account the characteristics of your warehouse, its transportation and storage. Access railway tracks, ease of travel and parking, warehouse opening hours, availability of personnel and loading equipment - all this can be decisive in future work.
Make your company's flawlessly streamlined logistics one of its main competitive advantages. Having your own transport to deliver goods to customers, promptly processing and fulfilling orders, competently organizing the warehouse space - all these points play a key role in the success of the work.
Purchase special software for your company, for example 1C "Trade + Warehouse". Such a program will help you with comprehensive inventory and shipment management.
Place information about your wholesale company in specialized directories, yellow pages, and local Internet resources. Open a multi-channel telephone line to inform customers.
No matter how well your wholesale business is organized, the deciding factor for most retail customers is the price of the product. Direct shipments from factories and manufacturers will help you ensure the lowest price. Most of them have different price levels for wholesale customers. First of all, the price will be affected by the annual volume on your part. Your goal is to obtain an exclusive product from a factory in your region. This way you can get the product at the lowest possible price, and also exclude potential competitors with the same product.
To ensure a low wholesale price, work on cost optimization. Poor use of time, transport and space can greatly affect the price. In addition, it makes sense to think about the development of online commerce. The opening of a wholesale Internet will significantly reduce warehouse and trading costs and allow you to offer a flexible system of discounts and lower prices.
note
Take care of the protection and insurance of your goods, especially when it comes to transportation over long distances. The loss of a large shipment can jeopardize the entire business.
Helpful advice
Keep track of the deadline for selling your goods, ensure a stable rotation of product lots. If goods of the same name arrive at the warehouse, sell the earlier batches first.
Sources:
- Rules for selling goods in wholesale trade
Wholesale trade requires considerable investments, serious competition and thoughtful organization of logistics. However, the income from a wholesale company, if the business is built correctly, can exceed all your expectations.
You will need
- - start-up capital;
- - stock;
- - transport;
- - Internet.
Instructions
Conduct market research in your region. Identify the major players in the area you have chosen to trade. Note for yourself the distinctive features of your company that can become competitive advantages. This could be a lower price, deferred payment, favorable delivery conditions, high-quality work with small cities in the region.
The key point in organizing a wholesale company is debugging warehouse logistics. Find a premises that meets all the requirements of your business and the specifics of your products. When choosing, you should take into account the availability of warehouse equipment, convenience of location, the presence of access roads and railways, conditions for maintaining warehouses during the cold season, sewerage, and security.
Enter into agreements with the manufacturers of goods from whom you will purchase products. Specify the conditions in detail: terms, packaging, assortment. Make an annual plan, since it takes a certain amount of time to produce goods. Stipulate the conditions for acceptance of goods and return in case of defects.
Purchase the necessary equipment. To work inside a warehouse, you will need at least one forklift and a dolly. Depending on the type of product, you can make your work easier with the help of specialized warehouse equipment: rigging systems, stackers, lifts. If you plan to deliver products to customers, consider purchasing a truck.
Create a website for your company, combined with the functions of an online store. This way you can reach others and make larger deliveries. To create a wholesale store, it is not necessary to create an attractive portal interface and spend a lot of money on its support. The main thing is complete information about available goods and timely updating of warehouse balances. Make a page using one of the free resources. Enter into an agreement with the transport company. Wholesale deliveries to the regions will bring good income, since in this case the factor of competition with nearby similar companies is reduced.
Video on the topic
note
Small wholesale buyers are extremely sensitive to price fluctuations. Conduct constant price monitoring so as not to be left behind in your business.
Helpful advice
Since warehouse equipment is quite expensive, consider purchasing used equipment. In addition, it is worth considering leasing purchase schemes.
Many people dream of opening a small retail business. The idea of running your own business, working for yourself and selling things you're interested in sounds like the perfect plan. It is worth learning more about how to successfully open a small retail business.
You will need
- - business plan;
- - premises;
- - license;
- - computer;
- - equipment;
- - insurance.
Instructions
Take special courses at your local university or association to learn more about starting and operating a small business. The more you know and try to learn before your case, the better prepared you will be when faced with problems.
Plan your business down to the smallest detail. Think about everything from financing and store location to the products you'll sell. Write a detailed business plan and submit it to the bank for review. If you want to get a business loan, you will have to provide a perfect business plan.
Select a location and name for your store. You may need to check the zoning regulations for the area you choose to find out what businesses can be located there and under what conditions.
Obtain the appropriate licenses and permits for your business and/or its rental. You will also need insurance and filing a tax return. These steps can be completed more quickly by working with a small business association in your area.
Hire employees only after your plan has been approved, all necessary paperwork has been received, and you have all taxes sorted out. When you start hiring employees, it marks the stage of getting your business up and running.
Order the required number of products for your store. Stock up first on those products that will sell quickly and you are sure of it.
Video on the topic
Sources:
- 40 Marketing Ideas for a Retail Store
From the point of view of stable demand and sustainability of business relationships, business in the b2b sector has an undeniable advantage. Well-established connections and well-established distribution channels allow wholesale suppliers to stay afloat even in times of crisis and stagnation.
Instructions
If you decide to organize a wholesale trade, first of all choose the niche in which you are going to work. It’s good if you have an idea in advance of how the standard business process is structured in the chosen area. This will make it easier to enter the market. If not, first study how all participants in the sales chain are interconnected. A detailed study may take a long time. However, its necessity is difficult to overestimate. Based on its results, you will not only represent wholesale trade from the inside, but you will also be able to soberly assess your strengths and, possibly, abandon the chosen idea.
If confidence outweighs all the arguments against, begin searching for suitable premises, negotiating with suppliers, and formalizing the chosen activity. In each of these issues there are a lot of nuances and smaller tasks. So, for example, the premises must not only provide the convenience of trade, but also meet the requirements of supervisory authorities. In addition, have certain technical characteristics and a convenient location. Search, selection and negotiations with suppliers, registration with the Federal Tax Service are also quite extensive issues. Ideally, it is better to do all this at the same time. This way you can save time and money.
When the main issues have been resolved, the lease agreement has been drawn up, and you are ready to ship the products, start looking for sales in earnest. Strictly speaking, you should have started looking for sales even before the very first step. After all, if there is a guaranteed demand for a product, then building the rest of the business process is not so difficult. There are a lot of ways to find clients, and most of them depend on the trading niche you have chosen. In general, send out, try to meet with the purchasing decision makers for large companies. It is difficult, but quite possible, to build an entire business on several large clients. You may also be able to find creative ways to enter the market. And never stop looking for new sales channels. Overall turnover is much more closely related to the profit received than in other businesses.
Homestead farming - from small country gardens to luxurious country gardens - is experiencing a new wave of popularity. Landscape design becomes a favorite hobby, and caring for plants is a pleasant way to overcome stress. That is why a business related to gardening products will bring a stable income.
You will need
- - premises;
- - start-up capital.
Instructions
Find a space for a garden center. Today, the range of products in this category is quite large, so the size of the retail space depends only on your capabilities: you can always fill it with a sufficient number of products. It is advisable to choose premises in a large shopping center or a building on the outskirts of the city. Owners of dachas and household plots will find it convenient to buy necessary goods on the way to their country house. Solve issues with fire protection, sewerage, heating. If you are going to sell plants, make sure that it is possible to maintain a certain temperature in one of the sales areas.
Find suppliers for your shopping center. It is optimal to sign contracts with several companies specializing in different products. As a rule, to maintain the current assortment, you will need to pre-order well before the start of the season.
Create a product range based on an analysis of the target audience. If you are targeting owners of small garden plots, focus on inexpensive tools, seeds, seedlings, household materials, and gardening tools. Expensive equipment can also form a separate category: lawn mowers, sprinklers. If your store is located near a large cottage village, it is advisable to introduce rare plants, wicker furniture, decorative elements for landscape design, and garden architecture into the assortment.
Introduce designer services to your garden center. Today, this position is in great demand. Such a service does not have to be expensive, because by creating a landscape design project for a client, you will be able to sell much more of your store’s products.
note
Be attentive to the conditions under which plants and seedlings are kept. Most of them require a special microenvironment, as well as special feeding, without which they may die.
Helpful advice
Introduce into your assortment products intended for casual customers: picnic equipment, potted flowers, dishes, accessories.
The average person increasingly associates a trip to the supermarket with queues, traffic jams and heavy bags. Receiving the most necessary products at home is a great solution for most buyers. That is why online store products can generate stable income and have excellent development prospects.
In wholesale trade, an entrepreneur purchases goods from a supplier in large quantities, and sells them in small quantities. It turns out that a player in the wholesale market is not the final consumer of the product himself, but buys it for resale to other businessmen. Considering the large role of such enterprises in the economy of entire regions and manufacturing industries, wholesale trade as a business promises great profits for the entrepreneur.
It is not uncommon for entrepreneurs with high ambitions to have problems choosing a form of trade - retail or wholesale, which is more profitable? The answer is simple: both areas of trade have both disadvantages and advantages. You can make the right choice only by comparing one with the other.
Key project indicators:
The cost of the project is 3,000,000 rubles.
Average monthly revenue is 600,000 rubles.
Profit – 400,000 rubles.
Payback period – 18 months.
To organize retail trade, you will need:
- renting premises in an area of the city where competition is lower;
- willingness to invest significant funds in entrepreneurship, both for rent or purchase of a building for a warehouse, and for equipment, for wages of service personnel;
- spend part of the funds on promoting trade and advertising.
To start a wholesale business, you will need several other steps:
- make a choice of suppliers of goods;
- select several retail shopping centers for resale of goods;
- buy or rent means of transporting goods in the form of cars of various modifications in the required quantity;
- select staff of trading base workers.
With all of the above, the wholesale base also has certain advantages:
- in this case there is no urgent need to advertise your services;
- the location of the wholesale warehouse does not play a decisive role in the success of the operation;
- purchased batches of goods significantly exceed this figure in retail trade;
- the areas covered by trade activities are wider;
- for large manufacturers of goods, wholesalers are preferable to retail clients;
- there is great freedom in choosing a product, since retail trade requires a very large assortment of goods;
- there is greater freedom of action in setting prices for goods in trade;
- For the entire sphere of relations between the wholesale base and suppliers, contracts are usually concluded that oblige both parties to act predictably.
Retail trade also has a number of advantages:
- this field of activity involves many transactions and several points of sale of goods;
- there is no need to maintain large warehouse areas;
- the retail price may significantly exceed wholesale prices.
Nevertheless, of all of the above, the advantages in economic activity of wholesale work in the modern commodity market clearly prevail.
Wholesale planning
At the beginning of a wholesale business, you need to decide on the goods that will be included in the assortment and the wholesale business plan. This, for example, could be a wholesale business in vegetables, both Russian-made and imported into the country. Also, during a real construction boom, trading in building materials would be a good idea.
Even before registering a business or immediately after it, you should find reliable suppliers of goods, rent a warehouse or build it on a leased or purchased plot of land. If you start organizing a wholesale business without investment, you will have to plan your work well without a product warehouse. Immediately upon receipt of goods from the supplier, you need to hand them over to retail. This mechanism must be clearly planned, debugged and supported by relevant agreements.
It is very important to have sales representatives to establish close relationships with retailers. These specialists must draw up contracts with a large number of retail outlets that are ready to take the goods for sale. It is better to choose payment upon receipt of the goods in the store. It is impossible to deny such difficult areas of trading activity as trade in meat and flowers. A sales representative can take on the functions of a freight forwarder, deliver perishable goods to stores and draw up the necessary documentation. You can completely trade with your representatives, instruct them not only to find contactees in the retail network, but also to draw up supply agreements with them, establish acquaintances and cooperation.
In addition to representatives of the company, the staff also needs to include an accountant with computer knowledge, a storekeeper with drivers and loaders. It is better to have your own vehicle than to rent it. Although, at the first stage of organizing a wholesale business, you can use the services of transport companies or small representatives of this business. If the volume of transported products is planned to be large, then you will need your own forklift. This will significantly speed up the process of working with cargo, and therefore the sale of goods.
Good lighting and alarm systems need to be installed in the warehouse. In addition, there must be an office space with computers to record the movement of goods. The business plan for a wholesale warehouse must include the installation of software on warehouse computers, preferably a CRM system for wholesale trading. Without automation, trading is simply unthinkable at present. After all, this program connects all departments of the enterprise into one database, making it possible to easily track the stages of delivery of wholesale purchases to customers. In the programs, you can draw up reports for work performed, maintain contracts and catalog goods. Also, with the help of an enterprise computer network, it is easy to organize the management of the company and monitor all operations performed.
When planning and deciding how to open a wholesale business from scratch, you need to take into account the possible risks in this business. These should primarily include:
- the existing competitive environment in the trade of selected goods;
- political, and therefore financial uncertainty of the moment;
- high capitalization of the required investments for the project.
The very ideas of a wholesale business are always based on attracting investment in their activities. But you can get a bank loan by defending these ideas to the heads of the banking structure with a ready-made business plan for work.
Calculating the profitability of a future business should be done at the planning stage. The initial costs should be correlated with the revenue from the movement of goods and the profit received each month of work. It would be nice to include a wholesale business development plan here. But this will be in demand only if there is successful activity in trade at the first stage, the stage of business formation.
To implement a medium-sized wholesale trade project, a loan of at least 3,000,000 rubles will be required. It is better to take this loan for two years with a discount rate of 14%.
Typically, the break-even point begins from the fifth month of operation. With a monthly profit of 400,000 rubles, the payback period for the initial investment is usually no more than one to one and a half years of work.
Recent studies show that the wholesale business is extremely profitable, promising, but highly risky. The key to its success is its favorable location in relation to the trade structure of the region, the dedication of the head of the enterprise and the high level of his knowledge, effort and tactical skills when manipulating the constituent documents at the very beginning of the activity. It is necessary to fully understand that a preliminary thorough study of the entire business and the attraction of considerable capital investments are required.
If you decide to start your own business, then first of all you need to decide on the type of activity. Organizing a wholesale trade is a little easier than opening a stationary retail outlet.
For wholesale trading to be successful, you need to find reliable suppliers. You can purchase household goods on the website http://super-optovik.com.ua/. Products belonging to this group are always in demand and do not require special storage conditions.
Product selection
To choose an industry in which you will conduct wholesale trade, you need to evaluate your knowledge in this area. Perhaps you work as a sales manager for a large shoe company. You are familiar with this market and its features. This knowledge can be used to start your own business.
If you want to trade another product, you first need to carefully study the market, find out the specifics and find suppliers. To do this, you will need to find answers to the following questions:
- What products are produced in your region. If the supplier is nearby, you save on delivery.
- Study the demand for the product. For example, sugar will always sell in larger volumes than Chinese toys.
- Try to choose a product whose sales are not affected by seasonality. Garlands and Christmas tree decorations are in demand on the eve of the New Year, and fishing gear sells better in the summer. Food, coffee and fruit are popular at any time of the year.
- The need for special storage conditions. Perishable food products require refrigerators.
- Difficulty in transportation. If you decide to sell porcelain or glassware, you must ensure their integrity during the delivery process.
By analyzing the market in your region, you can find the product that is in greatest demand all year round.
Most popular products
You can trade any product, but the following types of goods will be in greatest demand:
- clothes and shoes. Regardless of the economic situation in the country, people will still need these goods;
- household chemicals are in great demand. This category of goods can be combined with household goods;
- flowers. Before the holidays, the number of sales increases significantly, but on weekdays bouquets remain a popular product;
- stationery can be sold not only to stores. You can enter into an agreement for supply to offices, enterprises and even schools.
If you focus on the demand for the product, and not on the percentage of profit received, then you can earn much more. For example, mass produced clothing sells at lower prices but is purchased more often. Elite models are very expensive, but they are sold very rarely.
Buy cheaper, sell more expensive. This is what a wholesale business looks like from the outside. It is often called the easiest and most profitable. However, a superficial glance cannot always give a correct idea of reality, and very often, when starting a wholesale business from scratch, businessmen lose a lot of money and become financially dependent. To prevent this from happening, you need to be careful and gradually master the wisdom of wholesale trade.
Legal support
Wholesale - . In the best case scenario, the wholesaler acts as a link between the manufacturer and the final buyer (or retail chain); in the worst case scenario, the wholesaler buys the reseller’s goods.
What's wrong with the second scheme? The number of intermediary markups, which greatly affects the possible markup for each intermediary. The buyer will receive a high price, which will result from the fact that the goods will pass through the hands of several wholesalers.
To start conducting intermediary activities you will not need large amounts of money:
- will cost several thousand rubles;
- office rental;
- an accountant and manager who knows how to negotiate professionally with both sellers and buyers;
- hiring a law firm for subscription services.
This necessary minimum will be needed by a wholesaler who is not going to take care of cargo delivery, warehousing and storage.
If a wholesaler plans to provide transportation and storage services to his clients as part of wholesale trade, he will need to enter into an agreement with a transport company and rent a warehouse suitable for a particular product.
There is an opinion that starting a wholesale business without investment is a better decision than immediately making large bets on a certain product. After all, until a wholesaler has thoroughly studied the market from his own experience, he is not able to correctly calculate the economic result of a particular intermediary operation.
Sources of financing
Those entrepreneurs who are thinking about how to open a wholesale business and make money quickly from it, first of all need to solve financing issues - where to get money for the purchase of large quantities of goods.
There is a certain difficulty in finding funds for such projects:
- related exclusively to intermediary activities, on conditions unfavorable to the entrepreneur.
- also cannot be calculated, since, according to the current SME support program, the priorities are agriculture, innovation, and the activities of social structures. Wholesale trade cannot be considered as a priority area of business.
- can provide the capital necessary for the transaction, but most often such investors require a fabulous percentage of revenue, and not every entrepreneur is able to cope with such a financial burden.
This attitude of financial structures is explained by the fact that the business associated with wholesale trade is very risky in itself:
As you can see, the risks are quite high and it is very difficult to mitigate them at the stage of preliminary preparation of the transaction.
To obtain finance for the implementation of his business ideas in wholesale trade, the entrepreneur will need to convince creditors that the listed risks are controlled and will not greatly affect the profitability of the entire transaction.
What to work with
One of the most profitable areas in wholesale trade is the wholesale purchase of food products from a manufacturer and their further sale either directly to retail chains or small wholesale enterprises.
Many entrepreneurs are afraid to deal with food products, since this item of purchase complicates the wholesale trade business process due to the fact that:
- is perishable;
- inspection authorities place increased demands on the conditions of storage and transportation of food products;
- The wholesaler, as one of the chain of traders, is responsible for possible harm to the consumer due to the consumption of low-quality products.
However, fears disappear after the first successful transactions and gaining experience in working with food products.
One of the operating schemes for a wholesaler selling food products is the following algorithm:
It must be said that many manufacturers do not immediately demand full payment of the cost of the goods from the wholesaler. To increase sales volumes, manufacturers are ready to defer payment, up to one calendar month. However, to obtain such a deferment, the wholesaler must establish confidence in the manufacturer's business.