Tuesday, September 08, 2009

Retail Versus Wholesale

Some people may be asking, wha? Retail versus wholesale? Do you have to choose? No, there is no reason to choose between retail and wholesale but it's good to have an idea who you are marketing to. When you are just selling retail, there is no need to have awesome packaging, stickers, etc. You just insert them into mailer and send (unless you want awesome packaging like the post from Friday). The customer gets the item and is super happy.

With wholesale it's very different. You have to think like a buyer, but in this case a wholesale buyer. Why should they spend money on your line? How will their customers react to the new product? You need to think about these things because when the buyer asks, and they will ask, you better have a great answer.
First off, you need a wholesale line sheet or a wholesale catalog. Something that the buyer can look through and get to know your products more. A line sheet is many things, but above all it is a document -actually several documents- that communicates necessary information to your prospective buyers. On a line sheet, you would list the products name, product code, size, color, scent, wholesale price, terms etc. Anything the buyer needs to know when ordering your merchandise. Remember this is wholesale, so it's wholesale prices. Normally wholesale price is 50% off the retail price, but you can set your wholesale price at any level. If you can, some pictures would be great.

If you have the time and talent, or have hired some talent, you can create a wholesale catalog. A wholesale catalog is either a digital or printed copy of your entire inventory, that includes pictures, prices, and information in a more professional capacity. Just because you do not have a wholesale catalog does not mean your company is not professional. There are plenty of companies that only use line sheets and have a very successful wholesale business.
You need to look at what level your company is at and decide what is best for you. But in all cases, read, Google, and find out all the information you need to know before deciding on a new venture. Knowledge is power and this is not an after school special. Good luck!

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