The Definitive Guide III: Finding and Working with Wholesalers
Disclaimer: This info is truthful to the best of my knowledge, If you disagree, please bring up your opinion/correction in a professional manner without attacking or targeting a member of these forums. I have personally been through this process, and I hope you learn something you can use in your future.
I would like to start out by saying there are two ways of finding wholesalers. Each of which I hope to explain to you in-depth. One way will yield you
maximum income potential, the other will
cut into your profit margins.
First, I cannot stress enough that I hope you all get legal with your retail business. It will bring you much more credibility and make your life easier and less expensive.
Let's get started.
METHOD ONE:
There are two ways of finding wholesalers. One is through the search engines.
I DO NOT RECOMMEND THIS METHOD! Please if possible
stay away from the search engines when trying to find product. There are many companies out there trying to make you believe they are a wholesaler. Please understand that real wholesalers will not work with the public, they will only work with real businesses with a business license. These "Wholesalers" in the search engines are what we call "Middlemen." I would like to say
it is possible to make money with them, but you will not make as much as if you were working with a real factory authorized wholesaler. Margin is what you are looking for in any retail situation. This is not the place to look for it.
METHOD TWO:
To find Factory authorized Wholesaler, contact the manufacturer of a product. Please note the label that is on a product is not necessarily the maker of the product. That is usually the brand name. You should look through the owners manual of the product you wish to sell and find the name of the manufacturer.
You can also use online services such as this:
http://www.shi.com/Global/ECommerce/...cturerList.asp
After you know the manufacturer, it's time to call them up. (Note: Manufactures will not work with you, or sell you product. Manufactures do not have the infrastructure to work directly with retail businesses, this is the Factory Authorized Wholesalers job.)
"Why are we calling the Manufacturer?" You ask. The manufacture has a list of factory authorized wholesalers they sell to. This is the information we are after. A manufacture should have no objection to this, and will usually tell you who they sell to.
After you get an answer, ask for their sales department. You will be transfered. You will be greeted.
Please say something like this:
"Hello this is (You Name) with (You business name) I was calling to inquire about who your authorized wholesalers are, could you please tell me how to contact them?"
Again, they should have no trouble telling you.
NEXT STEP:
Calling the wholesaler. This is a very crucial part, and you must be EXTREMELY courteous to them. This is where you make it or break it, remember, you need them, they
DO NOT need you. When you call, ask for the sales department. Please say something along these lines:
"Hello this is (You Name) with (You business name) I was calling to inquire about becoming a dealer. Could you please tell me about your application process, and where to begin?"
It is very important to be professional. This includes stating your full name, and business name like above.
I have always been directed to their website, where you will need to fill out an application form, but please have all information ready, such as:
Bank references
Your bank name, address, Phone.
Your Business Checking account #
Your sellers permit #
Your information (i.e. Years in business, your address etc.)
Any trade references (if you have credit terms with other wholesalers)
Please note you may be asked for
Trade References or a
DUNS Number. This is for credit terms. Credit terms in a nutshell is ordering product from them, and paying at a later date. Many wholesalers have what are called Net 30, or Net 7 credit terms.
If you are a new home business owner you probably do not have have a DUNS # and Trade References. There is a way around this entire process.
If you do not have Trade references or a DUNS Number, simply tell the wholesaler you would not like credit terms, and would rather pay by check/credit card or debit card. This is 100% legitimate, and an easy way around a very lengthy process.
Please note: Some wholesalers may not accept personal credit cards or debit. Some may not even want to work with home based businesses, and may straight up tell you to get lost. Please don't get discouraged, and move to the next wholesaler on your list.
Also Note:
Some wholesalers have minimum orders, may range from $500-50,000 (See my signature for "Pre-Screened" Dropshippers and light bulk wholesalers)
Some wholesalers do not work with home based busineses.
Some wholesalers do not have fulfillment services (dropshipping)
Again my signature has info on how to find ones that will work with home based businesses, who do dropshipping, and who do have little or no minimum order)
I hope I cleared a few thing up. If you would like a list of Factory Authorized Wholesalers click the link in my signature.
PAST GUIDES:
The Definitive Guide: "Where do I find products to sell?
Everyones been asking. "Where do I find products to sell?"
The Definitive Guide II: Value Added
The Definitive Guide II: Value Added.
I know you were probably thinking I was going to say something negative but really, you gave some great points for anybody who wants to be serious with their business. I'm not a know-it-all (as Sawkilla believes, but then again, its a honor to hear such a thing, maybe they as I said, don't take business serious) but this topic gave some great advice in my opinion.
