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FINDING POTENTIAL WHOLESALE ACCOUNTS

FINDING POTENTIAL WHOLESALE ACCOUNTS
By Darren Hendricks

Every retail store is a potential user of specialty merchandise or gift items.
That's a pretty broad statement, but it's true. And where some Wholesalers might make a mistake is to approach only the obvious choices; gift shops, novelty and collectible outlets, general merchandise dealers and the like.
But what about a locksmith? Or a bookstore? How about stationary stores? More and more of them are featuring gift displays. So, the local phone directory is a ready-made list of potential clients. Add to that the retail stores you regularly patronize, and you're ready to go.
While nearly every retail store is a potential client, those stores will generally fall into three basic categories: Mom and Pop, Small Chain, and Franchise or Major Chain.

SELLING TO "MOM AND POP" STORES
The local stationery shop, liquor store, truck stop, convenience market, gift shop, and all those -her privately owned retail stores that line the streets and strip malls of virtually every city and town are prime prospects for your merchandise.
Here's why they should buy from you:

1.You offer fast, personal service.

2.Your prices are outstanding.

3.Your product quality is excellent.

4.You offer a tremendous selection.

5.Your product line is constantly updated with new items.

6.You're local.

7.You're dependable, professional, and easy to work with.


Of course, that last reason is up to you, and it's CRITICAL! You've probably heard the saying: "People do business with people they like." It's true!
These types of stores are usually family-owned and operated, so in all likelihood the folks working in the store are the ones you'll want to talk to.
Start ... with a letter, phone call, or best of all a personal visit. Introduce yourself as a local wholesaler of popular gift merchandise, and ask to speak to the person who handles purchasing. Make an appointment to show your line. Don't worry if you get turned down the first time. Call again. And a third time. Don't stop until you get that appointment!
Next ... show up for the appointment on time, with samples, business cards, catalogs, price lists, and your order book on hand. Conduct a friendly, brief, yet thorough presentation. Explain how these products can increase THEIR sales - remember; they're interested in what you can do for them, not the other way around.

SELLING TO SMALL CHAIN STORES
Occasionally you'll run across small chains, where there may be several,even a couple dozen stores operating under the same name. Often a single owner, who oversees much of the purchasing for all the stores, runs these. Again, you offer all the same reasons this person should buy from you, and you'll follow the same steps in making contact, handling a sales appointment, and filling the order.

Payment:
Try for the identical terms you'd propose to a "Mom and Pop" store. Again, if possible, don't fill an order without at least a deposit large enough to cover your costs. Otherwise, you'll have to cover the difference until they pay you the balance.

"MOM AND POP" STORES

1.Easy to meet the person in charge of buying.

2.Can be a friendly, less formal relationship.

3.Smaller orders.

4.Often immediate payment


SMALL CHAIN STORES

1.One person


(possibly the owner) may be in charge of buying for all stores.

2.Can be a friendly, less formal relationship.

3.Orders may be larger, due to more stores.

4.You may still be able to negotiate immediate payment, or at least a substantial deposit.

5.Sometimes a chain-of-command to go through.

6.Usually a professional, "bottom-line" relationship.

7.Potentially huge orders.

8.Possible "Net" payment terms.


SELLING TO LARGE CHAIN STORES AND FRANCHISES
Here's where you can make some really high-volume sales. Don't be intimidated by the size of the operation, or the fact that you're contacting a corporate buyer in some instances. You've still got all those same great reasons that this company should buy from you.
Start with a personal visit to the store. Ask the store manager for the name of the person responsible for purchasing giftware. In some cases, the manager has the authority to make those purchases (especially if it's a franchise, in which case the manager may also be the owner). Other times, you'll be dealing with a corporate buyer.
If the manager has the purchasing authority, you'll proceed as you did in the examples above. If a corporate buyer handles all purchasing, you'll contact the corporate buyer. Introduce yourself. Give a brief summary of the lines you carry that you believe will be a good fit for her stores. Ask for a personal appointment.

Important: Many times - maybe even most of the time - you'll get turned away on your first call. Don't be discouraged! The buyer may simply be testing your professionalism and follow-through. By calling again in a couple weeks, you demonstrate those qualities.

Next ... be on time and extremely businesslike when you show up for the appointment. Get to the point; and be ready to talk price. The buyer's job is to get the best possible price, so the more you can help her, the better your chances of landing an order.
Next ... when you get a Purchase Order, immediately contact your supplier to determine availability. If there's a problem, notify the corporate buyer right away:

Example: "I appreciate your order for 250 of Item #29435. I'm able to deliver the bulk of the order - up to 150 items - immediately. I'll deliver the balance by the end of the month. Will that be satisfactory?"

Finally ... fill the order and have it shipped directly to each of the stores, in the quantities the buyer has specified.

Payment:
In dealing with large chains and some franchises, expect that you'll be asked to accept "Net" terms; typically "Net 30." Technically, this means they are required to pay you the full amount due for the order within 30 days of merchandise delivery.

In The Real World ...
... this could mean up to 60 days before you receive any payment. And with "Net" terms, you'll receive NO deposit. So, you have to "float" the cost of the order for that time.
Some Wholesalers use credit cards as "financing" for these larger orders. That way, they're not out-of-pocket for the costs, and when payment arrives they're able to payoff the card and keep the profits.

About the Author

Darren Hendricks has been involved in marketing in one form or another since 1979. He has owned or co-owned 3 successful companies. He is currently owner of Far Horizons Home Based Business Program

 

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