Wholesale business from scratch. How to start wholesale? How to open a wholesale business
Many entrepreneurs view the wholesale business as an opportunity to earn good money without much effort, and they are absolutely right.
You will learn:
- What is a wholesale business
- What are the advantages and disadvantages of a wholesale business
- What are the types of wholesale sales
- How to organize a wholesale business
- Do I need investments to start a wholesale business
- What are the most common mistakes people make when starting a wholesale business?
- How to increase sales in wholesale business
Wholesale business is a special field of activity with its own unique specifics. To achieve an excellent result and receive a stable income, you need to know this specifics perfectly.
What is a wholesale business
Wholesale as a business is the purchase of products in large quantities from a supplier or manufacturer (less often) for its subsequent sale in small quantities. That is, the product is bought not by the end consumer, but by a business representative in order to subsequently resell it or use it for production needs. Of course, the wholesale business is far from the last place in the issue of economic relations between manufacturing areas, manufacturers of goods and retail companies.
Ambitious start-up entrepreneurs often face the problem of choosing between wholesale and retail trade. Each industry has its own advantages and disadvantages. The choice can only be made by carefully analyzing each of them.
To reach the heights in retail, you need to:
- To find the appropriate premises, in order to ensure the competitiveness of the enterprise, the location must be "profitable", passable.
- Have sufficient cash to buy out/pay the rent and purchase goods.
- Have the necessary financial resources to adequately pay for the work of staff.
- Allocate funds for advertising and further promotion of the enterprise.
To organize a wholesale business, you should:
- Choose one or more reliable suppliers.
- Conclude agreements with stores in which goods will be sold.
- Choose a method of transporting goods (you can rent or purchase trucks in the required quantity).
- Find staff.
How to increase profits for a wholesale business
Wholesale companies are "sandwiched" between suppliers and buyers, who themselves face all the problems of the crisis period. How to build sales so that counterparties are satisfied, and this only benefits the company? Check out seven solutions that have helped wholesalers not only maintain, but raise the bar. You will find them in the article of the magazine "Commercial Director".
What to trade in the wholesale business: types of trade
The two main forms of wholesale trade are:
- No need to advertise the company - enough build a customer base retail partners.
- The ability not to focus on the location of the wholesale warehouse or enterprise, unlike retail stores. The wholesale base can be located in any place convenient for you.
- The amounts of wholesale transactions and contracts are much higher than retail ones.
- Wide sales area.
- Opportunity to enter into many contracts with large manufacturers, including regional ones, since they often resort to the services of wholesalers.
- The chance to sell the most profitable types of products, such as tobacco products, alcohol, semi-finished products; Retailers must create an extensive range of products, seeking to satisfy all consumer needs.
- Savings on the purchase of wholesale goods - this allows you to set the retail price of your products.
- Strict regulation of the conditions for the sale of goods by an agreement between wholesalers and retailers; thanks to the drawn up agreement, the possibility of disagreements and conflicts between organizations is practically excluded.
- Receive payment for the goods immediately after delivery - the wholesale supplier does not wait until it is sold.
- Taxation rules for wholesale trade, according to the legislation of the Russian Federation, are quite simple. Retailers are subject to the Single Tax on Temporary Income, while wholesalers must pay fees under the DST or STS (General or Simplified Taxation System), which is much more convenient.
- Direct cooperation with experienced buyers who are interested in the low price of products and are constantly trying to reduce the cost.
- Requests from buyers for maximum deferred payments.
- Endless debts on the part of buyers and, as a result, an increase in overdue accounts receivable.
- Competitors regularly sell goods at reduced prices, which affects the quality of products.
- Incoming requests from customers to fulfill their conditions (for example, labeling products with special labels, bringing products by a certain time in small batches, using euro pallets for delivery, and many others).
- The lack of points of control over the work of managers in the sales department.
- Disruption of communication in the departments of the company, which causes disruptions in work and delays in deliveries.
- The absence of the effect of advertising that does not contribute to the promotion of products.
- The introduction of huge fines for non-compliance with certain conditions under supply contracts.
- Periodic "churn" of customers, some of which go bankrupt, others - make a choice in favor of other suppliers.
- transit. It provides for the delivery of products to retail outlets directly without export to a wholesale warehouse. The main advantage of this form is the higher speed of trade turnover and the safety of products.
- Warehouse. Products are sold from stock. The form, which is by far the most common, allows you to prepare goods before sale and supply retail outlets with small batches of the products that are required at the moment
Wholesale points are also differentiated by the breadth of the range of goods:
- A specialized (narrow) assortment implies the presence of less than 200 items.
- A "limited" assortment is considered to be the names of goods in an amount of less than 1000.
- A wide assortment is from 1 to 100 thousand items.
In terms of turnover, wholesalers are small, medium and large.
According to the method of delivery: goods are delivered to the points by the company's vehicles or employees of the company. Products can also be issued directly from the warehouse.
There are several marketing systems - exclusive, selective and intensive. On one of these systems your business will be organized.
If the activity is based on an exclusive system, the manufacturer must issue a license to trade, according to the conditions franchising. The number of intermediaries is minimal. In the selective system, which also includes the wholesale business, the organization and the manufacturer enter into distribution agreements. In this case, technically complex goods are usually subject to sale. An intensive distribution system implies the presence of a large number of intermediaries and wholesalers.
How to start a wholesale business from scratch without investment
Wholesale business without investments is real. Entrance to it is possible in the complete absence of funds. All that a person who wants to work and earn money needs is a telephone connection, open access to the Internet and a focus on results. One can treat the issue with a share of skepticism, saying that all niches are already occupied, but there is no start-up capital. But the advantage of the wholesale business lies in the fact that it does not require financial injections. You need to be a sociable, confident and quick-witted person.
This option will appeal to newcomers to the business.
3 myths about the wholesale business
- "The retail buyer can find a supplier himself." It is not uncommon for an enterprise to not receive profit in full with sufficiently efficient operation. The reason may lie in the inability or unwillingness of the supplier to self-advertise. Most of the category of people who deny the Internet, Yandex.Direct and other advertising channels are men over the age of 50 who started their business back in the 90s. The buyer, of course, can find a supplier himself. But it is worth considering the large territory of our country and the large volumes of consumed wholesale products. In any case, not every entrepreneur manages to sell the maximum amount of products. The main task of the wholesale business is to help suppliers sell goods on a huge scale.
- “If I bring the supplier and the client together, they will do everything themselves, and they will throw me.” You can eliminate such an unpleasant situation by concluding an agency agreement. The probability that you will be "thrown" will be reduced to zero. The essence of the agreement is that when you find customers for the supplier, you will receive a percentage of the volume of goods sold. In this scenario, it is unprofitable for the supplier to terminate business relations with you, since it is in his interests to regularly sell products, in which you help him.
- “Getting customers for wholesale is very difficult.” Entrepreneurs in the wholesale business often find customers through online classifieds. Contextual advertising Yandex.Direct is also a very effective business tool. Thanks to a simple algorithm, even a novice businessman can create a good selling ad that will help attract customers. At the moment, a number of holdings and large companies are looking for suppliers on the Internet. However, many entrepreneurs dismiss this option, which is very "handy" for novice savvy intermediaries. Not the last role in the issue of attracting customers is played by cold calls and the work of high-class sales managers.
How to open a wholesale business
Stage 1. Market analysis and identification of the most liquid (fast selling) goods. To identify and predict the most popular wholesale options, it is absolutely not necessary to dive into a deep study of all existing offers. Pay attention to food products: flour, granulated sugar, butter, baby food, canned food. All these products allow you to start a business without investments in the wholesale trade. Just agree on cooperation with an inexpensive manufacturer, and the matter is small.
Stage 2. Niche selection. Think about what niche you would like to occupy. The easiest option is to work with small wholesale lots. If you decide to open a wholesale business from scratch, this will allow you to gain valuable skills in concluding contracts and determining how to make a profit.
Stage 3. Selecting a product group. When choosing products for sale, consider several important components:
- Give preference to the group of products in which you are well versed. For example, if you received your education at a forestry institute, focus on products in the field of woodworking. At the same time, for a person who has a great desire to develop, there are no boundaries. Even without the appropriate education, it is quite possible to understand the products of any industry.
- Analyze what products are presented on the local market, what products are in the greatest demand, pay attention to the pricing process, find out which regions act as suppliers. Next, find a manufacturer where you can sell similar products at reduced prices and offer potential consumers their wholesale.
- When selecting products by category, make a choice in favor of those products whose sales do not depend on the season, weather conditions and other similar factors. Buying perishable products is also not worth it. Starting a business, do not take into account exclusive products that are popular in a limited circle of buyers.
Stage 4. Warehouse selection. Before organizing a wholesale business, select a warehouse. Its absence can be a significant problem. Many entrepreneurs are now talking about the shortage of warehouses both in megacities and small towns and villages. That is why the rent results in a large amount, especially if the area is large and the location of the premises is good. When organizing a wholesale business, remember that you need to rent or purchase warehouses after you have chosen products for sale. This is due to the fact that the storage conditions, for example, for home appliances differ significantly from the principles for storing dairy products.
Consider buying and renting a space. Perhaps the construction of a warehouse will be a much more profitable undertaking than monthly rental payments. The construction of a prefabricated warehouse has long ceased to be a difficult task - there are all conditions for organizing such a premises. Also consider buying or renting shelving, refrigerators, and other equipment to keep your warehouse running smoothly.
Stage 5. The search for a supplier is a key moment in the organization of wholesale trade. Of course, it is better if the manufacturer works in close proximity to you. Find people who make products and are interested in selling them quickly. Such an enterprise or company can be a furniture factory or a dairy plant with reasonable prices. In this case, you should not have any difficulties with delivery - and this is also a huge plus.
Often large-scale federal manufacturers work with many wholesalers or regional dealers. As a result, a long "chain" of sales goes through several wholesale outlets. It all depends on the number of competing companies in the trading industry, the level of demand for the product and the size of the retail market. Goods always get to retail points of sale through wholesale, and only then sales begin.
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When choosing a group of products for wholesale, remember that a wide range of products always contributes to generating income. The increase in the volume of deliveries and contracts with partners is a gradual process.
Finding a manufacturer that does not currently have a company through which you can buy goods in bulk is not an easy task. But in the interests of manufacturers and large suppliers - long-term cooperation with the wholesale business, and therefore its representatives are always offered bonuses and discounts. Direct cooperation with manufacturers without intermediaries can significantly save money.
Stage 6. Recruitment. An important role in organizing a wholesale business is played by interaction with sales representatives. The main task of representatives is to find the largest number of retail outlets that take over the sale of certain products. You usually need to pay for goods either immediately or after they are sold in the store. Sometimes sales representatives also act as forwarders, delivering products to points of sale, doing paperwork and issuing goods. A sales representative is a key link in any chain, since it is he who finds potential customers, concludes supply contracts and works directly with store employees.
In the work of a wholesale organization, not only a sales representative is important. You should establish cooperation with a PC operator who will process applications, an accountant, a storekeeper, a cashier and a driver.
Stage 7. Purchase of transport. Ideally, you should buy a car. But if you don’t have such an opportunity yet, you can rent a vehicle or find drivers who already have a personal truck. If you plan to sell products in large quantities, buy a forklift.
How to open a wholesale business branch in the region
Before each wholesaler, sooner or later, the question arises of building a sales system in the regions. How to most effectively promote your products hundreds of kilometers from the head office? How to minimize the risks and costs of logistics? How to keep brand reputation under control? The Commercial Director magazine answers all these questions in its article.
What contract to conclude with the supplier
An agency agreement is concluded between a businessman engaged in wholesale trade and a supplier. It provides for the responsibilities of each of the parties and ensures their mutually beneficial relationship. According to the agreement, the wholesale businessman is looking for customers for the supplier, and the latter, in turn, pays interest for each of the completed transactions.
When concluding a contract, pay attention to several aspects:
- The main function of an agent is to look for buyers.
- The contract is signed by the agent and the supplier.
- The signature can be put by an individual who does not have an LLC or individual entrepreneur.
- The document must contain the percentage that you receive for the transaction.
- The contract may contain sales volumes, payment methods (bank transfer, cash), work schedule and other details.
- The contract prescribes the information available in the Civil Code. It says that the contract obliges the agent, for a fee, to legally act on behalf of the principal on his own behalf, but at the expense of the other party, either at his own expense or on behalf of the principal.
There are a number of options to consider here:
- You, that is, the agent, act on behalf of the supplier and at his expense.
- You are acting on behalf of the supplier, but at your own expense.
- You are acting in your own name and at your own expense.
Of course, the presence of an agency agreement does not give a 100% guarantee in case of cooperation with a dishonest supplier. This document is intended to provide you with emotional peace and confidence that you are acting in accordance with the law. The presence of an agency agreement is a reason for the supplier to be confident in your decency and legal literacy. It is much more important, of course, to agree with the second party in a human way, establish good relations and let the supplier understand that, working with you, he will always be afloat.
- Before implementing a wholesale business plan, choose the niche you want to fill and analyze the market.
- Study the properties of the product you would like to work with, learn more about the sales market and do not lose sight of the seasonality of the product.
- At the beginning of work, always focus on accumulation (money, customers, product leftovers).
- In the process of developing activities, the staff will expand, and therefore carefully calculate each step, think about the advisability of hiring new specialists.
- The beginning is always the most difficult, and therefore there will be a lot of work; for an indefinite period, you can forget about holidays, weekends and vacations.
- If you can not take a loan and impose other financial obligations, give them up, at least until you are sure that you are not at risk.
Typical mistakes of beginners in the wholesale business
1) There is no clear plan of action. There are no improvisations in business, and this, unfortunately, is forgotten by many novice businessmen. The difference between business and everyday life lies in the fact that things left to chance turn out to be insoluble and do not bring good results. Many entrepreneurs do not have an action plan, a project. A business plan (wholesale sales) should accompany you from the very beginning of the activity. Subsequently, there simply will not be time to compile it.
If you want to make a profit from work, write down each action and make up for a year. Think about what you need to expand your customer base, how to turn random customers into regular ones, write down the actions on paper. Work on the personnel search system, select employees, find suppliers. Developing a clear plan will take you the minimum amount of time, but it will save you the most in the future.
2) Incorrectly distributed start-up capital. Most beginners who ask the question: “How to open a wholesale business?” Want everything at once, and therefore waste their start-up funds irrationally. Irrational expenses include the purchase of ultra-modern equipment, high rent for a warehouse and high salaries of specialists. Remember that the money business brings, first of all, sales. Therefore, it is better to direct the funds to the development of sales, supply chains and distribution.
When drawing up a business plan, pay attention to the most costly items. Analyze them and understand that at the very beginning of the work you will not need. You can cross off the list of new expensive office equipment, the creation of a modern personal website - you will deal with these issues later. If you can work not in the office, but in any other room, refuse to rent. You will always have time to move into a new office.
3. Misunderstanding the importance of the target audience. Beginning businessmen often have no idea about the target audience and market segmentation. And, at the same time, these are key values in business. If you don't identify your target audience and understand who your product is intended for even before you start selling it, it will be very difficult to create an effective plan for its implementation.
An advertising campaign is effective when it is clear for whom it is designed. Think about who your product is for? What age are these people? How much, on average, do they receive per month? Being sure that your concept is interesting to any category of the population, you should not direct advertising to everyone - you will lose time. The success of your business depends on how accurately you represent a potential client.
4. Misunderstanding the difference between selling and marketing. A number of entrepreneurs do not understand how sales differ from marketing, and are sure that these concepts are almost synonymous. But it's not. Let's take an example. The seller generates and implements wholesale business ideas, takes a number of actions so that a person purchases products. These are sales. Actions on the part of the marketer, aimed at making the buyer contact you - marketing.
If you know exactly about your target audience, there will be no problem with advertising. You will clearly understand how and where it is better to give it. There are a million ways to attract a client. One business is effectively promoted using one advertising campaign, the promotion of another is based on a completely different concept.
5. Expect instant profit. Many entrepreneurs do not understand: there is no instant income in business. This is especially true for those who have not previously conducted such cases. And, if it is not possible to make a profit during the first months, people leave the business. And you just have to be patient.
When calculating any business plan, the fact that the first year of operation does not give almost any profit is taken into account. Moreover, it can be very costly. And only then the losses become minimal, then they are reduced to zero, and after a couple of years, the ready-made wholesale business begins to generate income. Patience is the foundation of any business project.
How to increase sales in the wholesale business: ideas
There are ways by which you can attract customers and increase sales. For example:
- Streamlining the sales management system.
- Interaction of regular customers and their involvement in the work.
- Creation and implementation of a high-quality advertising campaign.
- Increase in client base.
- Converting potential customers into real ones.
- Increase in marginal profit.
- Competent system of motivation of sales specialists.
- Efficient work with receivables.
All these manipulations can be carried out within the framework of a small enterprise using special business technologies.
How to turn wholesale business customers from potential to regular
How the wholesale business is organized, and what are its specifics, is completely unimportant. The main thing is systematic and continuous sales. In this regard, the key point in the system is the development of a sales funnel. Moreover, it is important not so much the presentation of this funnel as effective work with it. Basically, wholesalers go through 6 stages of sales, at each of which it is important to negotiate with customers.
The first block is the number of clients called by managers.
The second block is the number of interested customers who received a commercial offer.
The third block is the number of clients to meet.
The fourth block is the number of people with whom meetings have already taken place.
The fifth block is the number of buyers who signed the contract.
The sixth block is the number of buyers who received the goods from the first shipment.
Who can be trusted to do this work? Commercial department of the company. If we talk about a three-level sales department, then the department located on the first level creates a flow and makes cold calls. He is not engaged in negotiating and paperwork.
More qualified managers close sales. At the same time, high-class professionals, as a rule, do not want to deal with "cold calls", they are more willing to talk with regular customers, draw up documents and take orders. This leads to a cessation of the influx of new faces into the wholesale business. Therefore, the best option is to create a three-level sales department, in which responsibilities will be clearly distributed among employees.
After visualizing the funnel, you need to describe the indicators that exist at each level. If there is no systematic measurement of indicators, start measuring right now, and then at any time you will be able to assess the reasons why revenue does not increase and sales do not increase.
How to identify the "weak points" of the sales funnel
Galina Kostina,
Head of the consulting agency "ProfBusinessConsulting"
Having cut the funnel, you will understand how many potential customers move to the next level. For example, at a certain stage, a narrowing of the funnel is observed. This means that it makes sense to talk about a weak spot in the overall system, and you can quickly intervene and correct the situation.
Example 1 The daily duties of managers include 50 cold calls, which is reflected in the checklist. However, there is no influx of new buyers. The reason may be the ineffectiveness of the cold call, the inability of the manager to negotiate at the proper level, or the initial incorrect drawing up of the buyer's portrait.
Example 2 Through cold calls, many customers are interested in your company. You sent them a commercial offer (due to this, moving to the second block). And here the funnel suddenly narrowed because the client did not want to meet. The reason is the incorrect preparation of a commercial offer, which the potential consumer simply did not become interested in. The fact is that buyers in this case are experienced buyers who pay attention only to numbers, and not to goods that can be of the highest quality. Therefore, think about how to make the most attractive commercial offer.
Example 3 Your employees regularly have meetings, you send specialists on business trips, but all to no avail - contracts are not concluded. Review the negotiation model, organize seminars or courses for employees where they could acquire the necessary skills. After training, evaluate the situation.
Example 4 Contracts are concluded, but at this stage the buyer stops working with you: he does not make orders, and no shipments are made. You will need the help of qualified managers who know how to work with objections and who are fluent in communication skills.
Information about experts and company
Galina Kostina, head of the consulting agency "ProfBusinessConsulting". Business Consultant, expert in increasing sales and profits for small and medium-sized businesses. He has 18 years of experience as a top manager in large manufacturing companies. Worked her way up from Chief Accountant (including at Wimm-Bill-Dann) and Director for Economics and Development to founding her own Consulting Agency. He has successful experience in implementing internal development projects, strategic planning, expanding production, attracting investment financing. Author of articles for professional federal publications, presenter of trainings and master classes.
Consulting agency "ProfBusinessConsulting" is a team of professionals dedicated to technologies for growth and achievement of results for small and medium-sized businesses.
Want to do something serious but don't know where to start? If you have business acumen, perseverance, and you know how to count at least a little, then you should think about the fact that you can have a big profit if you organize a wholesale business correctly. how to do it so as not to burn out?
Naturally, this is not so easy, especially if you have no idea how to work in this area, but you are going to start a wholesale business from scratch, without any prior experience. In order not to burn out, in this business you need to have an accurate understanding of what you want, what your goals are, that is, planning is important. When you have a goal and a plan to achieve that goal, it will be easier for you to move forward step by step.
Let's talk about where to start, and you need to start by studying the market - is there a demand for the product that you plan to buy, if there is, then how big it is or maybe it is fading away, in which case you risk fail. That is, we start by choosing a niche. Then we study consumers and your potential competitors with their strengths and weaknesses, in order to analyze and draw a conclusion. This is very important, because the more competition you have, the more difficult it will be for you to break through, especially since you are a beginner and they already have everything under control.
It is impossible to start your own business, in this case a wholesale business, without knowing your potential customers and their needs. On the one hand, you don’t need much to start - you contact, for example, China, order a wholesale batch of phones from them, add your percentage and sell it.
Everything seems to be simple, but if you do not draw up a business plan, do not calculate the costs and do not find a place of sale in advance, then the failure of the wholesale business is guaranteed to you.
What is a business plan?
A business plan can be compared to a flashlight that will show you the way in the dark, but only if you do not just wave it in all directions, but purposefully shine only in the direction you need. Similarly, a business plan is what was mentioned above, only in order, structured. This is the road that your business will take. If you set out to start and know where, then, without delay, take a pen with a notebook and write in detail for yourself:
- What will I be buying?
- To whom will I offer it?
- How much money do I have for this?
- Do I have competition, who are they and how many are there?
- My next goals?
- Long term goals?
- Possible failures and methods of correcting the situation.
- Will I have advertising, labor or other additional expenses?
A business plan is not a one-time entry, it is your diary where you will record your conclusions, decisions, goals, problems and their adjustments every day.
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Calculation of costs in the wholesale business
Do you know the saying "a penny saves a ruble"? In fact - it really is. What many entrepreneurs lack is accounting, constant information of debit with credit. Meanwhile, if you want to be a truly successful entrepreneur, then you need to constantly analyze expenses, there should not be such that you do not know where you lost or where the money disappeared.
In your business plan, you must separately prescribe all possible expenses, planned, fixed, unforeseen, hidden, sunk, and so on. No matter how strange it may seem to you, but you should calculate the amount of wages for yourself, it is desirable that it be fixed. This will help you not to uncontrollably take the money that was intended for the conduct of your business.
If you don't know how to do it yourself, then hire someone to do it for you and for you. You can also download a special accounting program that will calculate itself, you will only need to enter your income and expenses. It is from such moments that a full-fledged business consists - wholesale, which anyone can start.
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Another important point
While you alone are thinking of starting a business like wholesale, there are entire companies and distribution networks that do the same thing, only as a team. Therefore, think about what can increase your chances in the sales market, perhaps if you offer a wider choice for the convenience of customers, you will have a better chance. Indeed, in this way, presenting your product, you can focus on the fact that you save both money and time for the client, providing him with not one product, but a whole group. It will be convenient if you agree in advance on deliveries to a particular store or enterprise.
In this case, you will face the question of storage, transportation, insurance, product documentation - all this will affect the final result and whether the client wants to cooperate with you in the future. With all this, you need to maintain cost optimization in order to continue to focus on the main goals in the business. It may even be cheaper for you to order professional services from a logistics company, especially since they provide a whole range of services in various business areas.
The opening of a new warehouse complex is a natural stage in the development of any trade or trade and manufacturing enterprise. It is profitable and convenient to have wholesale warehouses in the regions where your branches or your dealers operate. Therefore, if you, the head of the opening representative office, are instructed by the company's management to organize a wholesale warehouse, you should not be surprised.
How to open a wholesale warehouse or store
So, let's consider in detail the instructions on how to open a wholesale warehouse or store and what you need to open it.
What do you need?
For this you will need:
- wholesale warehouse business plan in detail;
- building (you can rent it or build it yourself);
- warehouse equipment, which is ordered according to the calculations made;
- employees (usually from 5 to 10 people);
- set of permits.
Instructions for implementing the idea
- Collect all the information about sales in this region, understand the dynamics of sales development. Be sure to consult with local dealers or representatives of your company. Before you take any steps regarding the organization of a wholesale warehouse, you should draw up a business plan with detailed financial information.
- Choose the optimal location for the wholesale warehouse, and only then look for a finished building for it, or land for the construction of a wholesale warehouse. The supply chain must be completely in the head - only then can one understand for oneself the strategic expediency of a particular location. If you really want to rent a room, you need to make sure that it is suitable for setting up a wholesale warehouse of exactly the type that is required, i.e. wholesale terminal.
- Seek the services of a warehouse logistics consultant if you are not an expert in this area yourself. Having a building (built or rented), one should start with the organization of the warehouse space - dividing it into sections (such as the area for loading and unloading, receiving, storing and picking goods). Calculate what kind of storage equipment you will need, for this, using complete information regarding the range of goods and materials with which you are dealing, and the characteristics of their weight and dimensions.
- Recruit a team of warehouse workers. First of all, find the head of the wholesale treasure, who then himself will look for people for further work. 5 people will be needed according to the most conservative estimates, often a warehouse complex is served by 10 people or a little less.
You should take warehouse work seriously and trust it only to professionals, you should try to use all the latest methods of managing a wholesale warehouse.
Access roads to the wholesale warehouse should be as convenient as possible and always free, so it is better to open a wholesale warehouse on the outskirts of the city, so that transport does not stand in traffic jams for hours.
The first 50 steps to start your own wholesale company
How to stop dreaming and make money 260,000 thousand rubles on wholesales from one transaction?
Quite a bold statement, isn't it? :)
One of my students, Sergey Danilov, quite recently earned 260,000 thousand rubles of net profit by bringing a supplier and a buyer to sell edged boards to a large Moscow holding.
Only a month passed from zero to the first money. Below I will tell you about how exactly this mediation scheme works, and how each of you can implement it (if you want, of course).
In order not to delve into all the specifics, I will try to explain everything on a simple situation. There is, for example, some timber producer who cuts and sells timber. He has a lot of wood, but no real clients (because his only source of advertising is word of mouth).
And at the other end of the region (or even in the neighboring region) there is a buyer with money who desperately needs this forest.
However, no one else can find each other, due to the lack of skills in advertising and working on the Internet.
You can help these people find each other by earning a percentage of the timber sold. For example, one truck of wood costs about 300,000 rubles. Having made just one call, bringing the client to the supplier, you can already earn 30,000 rubles by making just one call and bringing these people together.
Why now intermediaries can earn from 100,000 rubles out of the blue?
It's no secret that at the moment in Russia and a number of CIS countries the wholesale market is still in the wildest state.
Manufacturers and large wholesalers continue to attract customers only through word of mouth and old connections.
Nevertheless, both suppliers and buyers always need each other (because construction is going on, production is working, and so on). With the development of the Internet, almost every person who has a desire has the opportunity to become a kind of guide in the world of wholesale. When you follow simple technologies to find customers for your supplier, thereby earning really serious money on mediation.
But how is it? Why can't the buyer find a supplier himself?
The reasons here are 2. The first reason is that the supplier does not know how (and does not want to) advertise normally. As a rule, these are men over 50 years old who have been engaged in this type of business since the 90s. They completely deny the Internet, the site, Yandex direct and so on.
Of course, buyers can find them on their own. But, since our country is still huge, and wholesale products are consumed in really huge volumes, one way or another, not all suppliers are lucky enough to sell their products in full.
We just do what we help suppliers to sell their products on a wholesale scale.
And what is sold in wholesale or what niche to choose?
Wholesale sells everything that is consumed in large volumes. Do an experiment. Make an announcement on Avito (avito.ru) that, for example, you sell sugar in bulk at the average market price. Most likely in a day you will receive from 10 to 15 calls at once from specific people WITH MONEY who are already ready to buy your sugar. It remains only to find a supplier, wind up your margin and earn on it.
This is the so-called principle of the thirsty crowd. You can sell anything that is consumed in large volumes. These are wood, meat, sugar, cereals, fruits, vegetables, crushed stone, sand, chemical products, caviar, special equipment, various equipment, and so on.
Bad niches in wholesale are: some unique wholesale cosmetics, wholesale unique rhinestones, wholesale colored pencils and so on.
Successful sales require a niche in which there is always a huge demand (because people are constantly building something, pouring something into cars, and eating something).
And if I bring the supplier and the client together, they will carry out everything themselves, and they will throw me?
We, too, once strongly asked this question. But, nevertheless, the solution to this issue is an agency agreement. This is when you enter into an agreement with a supplier that you will find customers for him and receive interest on the volume of products sold for this. In this case, the contract guarantees you that you will not be thrown.
It makes no sense for the supplier to throw you, because he is interested in the constant sale of his products. And, of course, the more money you make, the more money he will make.
And how to attract customers who have $$$ ?
We attract all clients through bulletin boards on the Internet, and through Yandex Direct contextual advertising. There is a simple algorithm that will allow even a beginner to write really selling ads, which will receive stable calls and orders.
Oddly enough, now there are indeed many large companies and holdings looking for suppliers on the Internet. Unfortunately (or fortunately), suppliers do not understand this, so intermediaries easily make money on this.
Who am i?
Hello, my name is Alexander Zalogin.
In a year and a half, I managed to create 2 of my own wholesale businesses from scratch without any start-up capital to companies whose average SINGLE transaction checks reached $ 20,000.
For the Russian wholesale and intermediary business, these are very serious sums (at least for today).
Now we sell fruits and vegetables to large Moscow factories.Website of our company: www.stu93.ru
Why am I telling this?
Not because I want to brag about my earnings. I want to show that since I did it(and, to with I catch, already with many of my students, though in slightly smaller numbers than mine), then you are capable of it.
Why, if everything is so simple, then everyone does not do it?
If you think so, then it’s very in vain :) Here, for example, are the reviews of people who are already doing this and getting some results. Screenshots from VKontakte:
You can also start selling wholesale and earnon this from 100,000 rubles!
It is enough just to take a ready-made proven model,and consistently apply it to your niche
However, at the same time, I understand that the first steps are the most difficult. Starting from zero to the first more or less noticeable income, at least a stable $ 1000-1500 per month. Further, having a stable income, it is already much easier.
I am often approached with this very question - Alexander, help me start.
But our wholesale trainings with Vladimir Olaev are often too expensive for beginners.
Therefore, I decided to issue detailed step-by-step instructions for starting wholesale sales - how would I start wholesale from scratch if I started now.
In this training, I will detail the first 50 steps that will allow you to:
1) Find out which niches in wholesale work and which do not!
2) Analyze the possibilities of your region of residence for wholesale sales
3) Analyze niches well for seasonality
4) Cut off all non-profitable niches
5) Finally select 5 key niches for the test
6) Directly test selected niches
8) Get the first calls and orders
9) See the dynamics of the selected niches
10) Finally decide on the niche in which we will sell wholesale
11) Create ads that actually sell
12) Use Yandex business cards as a sales weapon
13) Launch the right wholesale Yandex direct for cheap!
14) Write selling ads in Yandex Direct
14) Create a selling wholesale site for 280 rubles!
15) Close all customer objections on the site
16) Show the value of your offer on the site (thus get out of competition on price)
16) Go to work with clients
17) Learn how to properly close clients for a deal
18) Learn how to deal with customer objections (expensive, I think, etc.)
19) Write your first sales script to work with clients
20) Get first orders from customers
21) Go to supplier search
22) Get a detailed supplier search algorithm through Networking or personal connections!
23) Find your suppliers online
24) Set up Yandex business cards to search for potential suppliers
25) Learn how to 100% check the supplier for "scam"
26) Get a working conversation script with a supplier
27) Guaranteed to interest the supplier for mutually beneficial cooperation
28) Create a marketing kit or sales presentation to create maximum credibility
29) Find out why an agency agreement is good, but an LLC or an individual entrepreneur in wholesale is bad!
30) Find out the main legal points of the agency agreement, or how not to be deceived!
31) Get a WORKING Agency Agreement Template
32) Conclude an agency agreement with the supplier personally
33) Conclude an agency agreement with a supplier remotely
34) Start matching a client with a supplier
35) Set up a personal meeting with the client (if possible)
36) Conduct a deal remotely
37) Overcome the fear of personal meetings and negotiations
38) Learn exactly how to behave at the first face-to-face meeting with a client and a supplier
39) Learn exactly how to position yourself in front of the client
40) Correctly sign the supply contract in a personal meeting (if possible)
41) Correctly sign the supply contract remotely (if there is no possibility of a personal meeting)
42) Monitor the process of payment by the client
43) Control the process of shipment by the supplier of goods to the client
44) Learn the main aspects of delivery in the Russian Federation and the CIS
45) Learn how to work with auto and rail transportation
46) Learn how to avoid "scammers" in wholesale
47) Get the first agency percentage from the supplier
48) Continue working with a client who has ALREADY completed a transaction
49) Create a steady stream of agency interest
50) Go to Finding New Leads
The seminar is mostly “for their own” – too many ask.
The duration of the seminar is 7 hours.
Feedback about the training
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Review of the training: I EXACTLY NOW KNOW HOW IT IS NECESSARY!
Ivan Potishny http://vk.com/potishnyy |
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Review of the training: I learned - I did - I got results.
Participated in the webinar with the whole family. Initially, it was my idea, and my husband was very skeptical. Moreover, paying money on the Internet for learning what he already knows was, to put it mildly, generally strange for him. He had previous experience in similar sales. I thought that everything in this area my husband is not familiar with the information business at all. For him, this training format is generally incomprehensible. And I, in turn, had a deep knowledge of Ya. Direct. Every day I work in Direct. Imagine my surprise when my husband heard for himself some chips and subtleties, and I learned new Direct chips. That was MEGA COOL! Let me tell you about my husband's reaction. Remember, yes, that he was skeptical. Here are the cheaters! We sit all nothing, and already ask for a break! In general, such emotions were unexpected for me. The best part was in the morning. My man slept with the knowledge gained - and in the morning he already developed an action plan. And I received compliments for insisting on participating in the webinar. Vladimir, Alexander Thanks for the webinar. Indeed, there is no water, but only practical information. I learned - I did - I got results. Natalya Markelovahttp://vk.com/id3930528 |
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Feedback on the training: I think that this training is for those who want to achieve something and do not want to just waste time. Guys, you did a good training on all the declared parameters, which open up new opportunities for us and allow us to move on. I want to note the successful presentation of information, understandable for people who have no experience in this field of activity, and in addition, I was especially pleased with the large number of live examples from your own practice!!! It left a very good impression. I think that this training is for those who want to achieve something and do not want to just waste time. Thank you:))) Ekaterina Shutova http://vk.com/id17442023 |
Who is this training for?
This training is primarily for those who have already decided that waiting 100,500 years before they can finally afford to buy a decent car and secure a decent life is too long. And so I'm ready to take action.
Who needs it - you know that you need it. If in doubt, definitely not here. For those who do not have time and miss - you are simply unlucky, and we refuse to work with losers!
With this training, you will receive the following bonuses:
1. The book "Secrets of a quick start in OPTE"
The cost is 1497 rubles, for you - free of charge.
- Where to actually start in wholesale
- Why a niche is the basis for a successful start
- What niches in wholesale actually work?
- How to motivate yourself to continue to develop a new niche?
- 5 Basic Criteria for a Profitable Wholesale Niche
- How to start in wholesale with no skills and experience
- Where to get motivation for a quick start?
- Why 90% of beginners will never reach the result?
- How to correctly model other successful niches in the wholesale business
- What is the "Startup Syndrome", and how to deal with it?
3. Templates of working agency contracts for wholesale sales
4. Step-by-step checklist of all 50 steps, with examples and templates:
I guarantee you a full refund of all money within 30 days, if by implementing all the technologies from this course you do not get the expected effect and are disappointed in the purchase. I am so confident in the quality of this information that I give you such a guarantee.
The organization of one's own business requires certain investments from a person in the development of his idea. Initially, a business plan is drawn up and already on its basis the amount that will need to be invested in the process of implementing the idea is clearly calculated. However, there are quite a few entrepreneurial people who want to open a business without an initial investment. And today there are ideas that allow you to realize your plans. At the same time, it should immediately be said that such a business requires serious preparation and necessarily requires a competent approach. Also, you will need to preliminarily draw up a specialized plan, on the basis of which you can calculate all possible prospects and priorities for further development.
In fact, it is almost impossible to open a wholesale business without investments. However, there are options that will allow you to get the prospect of minimal injections, which will later be fully justified. If there is no money at all at the initial stage of the action, then you can count on the implementation of exclusively piecework purchases. In fact, this is a wholesale business to retail. You, as the organizer of such purchases, interact with suppliers, make your margin and provide goods to buyers. Buyers place an order and pay for it in advance. You, in turn, using the funds of customers, carry out the purchase of goods and its distribution. Only in this case, it is extremely difficult to actually enter wholesale sales. In addition, earnings from piece-work purchases are several times lower than earnings that can be obtained from the wholesale sale of goods.
Today, there are indeed various business options that allow you to get the prospects and benefits of making a profit without an initial investment. At the same time, there will still be some costs. Therefore, you will need to choose a field of activity that will be interesting to you and in which you will have a certain level of knowledge. And also work out a plan on the basis of which all actions for business development will be carried out.
Many people think that starting a business without investment is almost impossible. And in fact, this is partly true. If you expect to receive substantial profits initially, then you will certainly need to invest in the implementation of your ideas. If you plan to make a profit with minimal investment, then you should understand that the development path will be more significant. However, you can take advantage of already developed plans and ideas for developing a wholesale business without investment. And you can pay attention to the possibility of obtaining a loan. Today, many banks provide the opportunity to obtain loans to start a business. In this situation, you will need a well-developed project - a business plan, as well as a certain collateral. After that, you will be able to receive funds that can later be spent on starting a business.
As for a business without investment, it is almost unrealistic if you focus on wholesale trade, but you can try to carry out the promotion process based on joint purchases. Or become a kind of intermediary between the consumer and the manufacturer. This option also has a lot of advantages, besides, investments will require a minimum amount.
In fact, the wholesale business necessarily involves the purchase of a significant amount of goods, as well as the organization of its storage, which does not allow you to get the benefits of opening without investment. But, there are a number of ideas based on mediation between buyers and the manufacturer. In this case, the business can be organized with a very small cash injection.
How to start such a business?
Business begins precisely with the analysis of the situation. That is, a person evaluates his capabilities, considers the prospects of different ideas, checks the statistics. That is, the assessment of the situation begins from the position of the possibility of opening one or another option for starting a business. In addition, those ideas are considered that do not really require certain investments. You must certainly conduct a comparative description and analysis, you must carry out the process of studying and, based on your conclusions, make a choice of direction.
Among other things, do not forget that the basis for starting a business is precisely a well-developed plan. In essence, planning includes a description of all the investments that will be required for the opening and subsequent development, and also includes a calculation of the investments that will be needed at different stages of doing business.
Note that if you want to open a wholesale business, then you will need:
- Premises rental;
- Payment of salaries of employees;
- Payment of various utility bills;
- Purchase of goods;
- Registration and registration, payment of various types of taxes, etc.
If you look at the template plans for just such a business option, it becomes clear that the investment is from one million rubles. If you do not have the opportunity to invest your funds, then you can do the following:
- Attracting investors. If your plan actually has unique features and original ideas, you may be able to attract investors. In fact, a structure of mutually beneficial cooperation is provided - your idea and implementation, the investor's money, the profit received forms the payment of the investor's investments and the percentage. That is, the investor not only returns his funds, but also receives a monthly profit;
- Looking for a partner. It is quite clear that many already established entrepreneurs are looking for options to expand their capabilities. They have a certain amount of free funds, but do not have an original idea for implementation. If you create a wholesale business plan with original and non-standard approach options, then you may find a partner who will invest in your project. But, after drawing up a partnership agreement, the business will be divided in half, as well as the profit subsequently received;
- Loan processing. The most standard option for obtaining funds for the implementation of goals is a loan. In fact, in this situation, the need to provide a specialized plan is formed, which is developed by you, taking into account all the nuances and features. The plan should be well thought out, analyzed in detail and clear. Among other things, you will certainly need to carry out the provision of collateral. Many banks have interesting business lending options, and there are even programs that do not require collateral.
If one of these options still does not suit you, then you need to evaluate the prospects for exploring ideas that can be implemented without investment. For example, an option with joint purchases. In fact, this business option can also be considered wholesale, as direct cooperation with the manufacturer is being formed. But keep in mind that the structure of the development of such a business will not be too intensive. The whole point is that you need to develop a significant customer base before your earnings reach the wholesale parameters. However, later on, you will certainly be able to expand your business, since on piece-work purchases you can get a significant profit, which can then be invested in creating a warehouse trade structure.
Wholesale business options
The wholesale business is popular because it actually offers the benefits of quick and fairly large profits. Let us draw your attention to the fact that there are two main concepts for doing business in this format. One is based on significant investments, the other will require minimal investment, but still, they will still be:
- The process of organizing trade through the preliminary purchase of goods from the manufacturer and the subsequent sale, taking into account the already established margin. In such a situation, the markup can be up to 150%. Accordingly, in this case, the profit is formed by the difference between the purchase price and the sale price. In this situation, it is necessary to equip the warehouse where the goods will be stored, purchase the goods, and also organize the delivery structure. In fact, this business is actually effective and profitable. Nevertheless, one cannot do without initial investments, which will be at least one million rubles. After all, you need to rent a room, hire staff, ensure the delivery of goods, carry out its direct purchase with advance payment, etc.;
- Work on the basis of an agency contract. In fact, this type of business is based on interaction with the supplier of the goods. In this situation, a specialized contract is drawn up, which determines that the goods are provided to you in installments. That is, initially you receive the goods, place them in a warehouse or on the site, after which you sell them. You will need to pay the supplier in three to four weeks, which essentially allows you to sell the goods, get your profit and pay for the goods received earlier. Many experts recommend starting your wholesale business with this type of cooperation. Indeed, in this case, initial investments for the purchase of goods are not needed. If you have a premises for sale, then you can carry out all sales activities yourself. The only expense in this case is the cost of registering entrepreneurial activities.
Today, it is possible to organize a wholesale business without significant initial investments precisely on the basis of an agency agreement. If you don’t have the funds to open a business at all, then give preference to the site where you will take orders. Please note that even a website can be created for free, but you still have to invest in its promotion. And it is better to create a more original design, a convenient navigation system, and pay for its advertising, which will allow you to get a significant influx of customers immediately after opening. In addition, try to provide customers with something more profitable than competitors provide. For example, with the opening, start a promotion of significant discounts. Let the initial earnings be less, but you will be able to create your own customer base, which will become the basis for subsequent development. In this case, your expenses for organizing a business will not exceed 100 thousand rubles. This is taking into account the fact that you order a website and promotion from experienced specialists in this field.
I would like to say a few more words on the organization of the agency agreement. Today there are many intermediaries who purchase goods and materials directly from the manufacturer in a wholesale format, and then sell the goods to other, smaller wholesalers. Moreover, in this situation, cooperation is beneficial to both parties. A cooperation agreement is signed for a certain amount of time, and the supplier can also set a condition for the purchase of goods for a clearly defined amount of funds. That is, it receives a significant market. A small buyer gets the benefits of purchasing goods in installments, which, in principle, is the undeniable basis for starting a business without significant investments.
Business plan with step by step instructions
Drawing up a business development plan is an important step that should not be skipped. Many entrepreneurs do not pay due attention to this moment, trying to save their time. In fact, there are a lot of ready-made projects that can help you figure out all the important points on your own and draw up your own plan. Its compilation is necessary in order to determine the amount of the initial investment, as well as subsequently assess the benefits of the business as a whole. If your calculations show that the business will bring insignificant profit, then you will need to evaluate other areas of activity. If the calculations show the effectiveness of the case, then you can start looking for options for implementing such a plan. The plan includes all data related to the costs of the initial organization, as well as subsequent costs that will be required in the process of doing business. The structure of the plan is:
- Project Description
- You need to indicate that we are talking about a wholesale business that starts with a minimum investment;
- In the process of calculating the plan, the required amount for opening is determined and it is indicated where exactly the funds for implementation will be taken;
- Specifies what form the business will have. In our case, this is the organization of the site on which the product will be sold;
- The form of interaction with suppliers and the conditions for making purchases are determined, in our case - the purchase of goods for sale, that is, with payment by installments;
- The number of employees is also determined, and the amount of funds that will be required to pay for the services of specialists is indicated;
- The form of entrepreneurial activity is indicated, and all data on tax and other payments that will need to be made are indicated.
That is, as you can see, the most complete information about the structure of doing business is collected. The nuances of cooperation with manufacturers or suppliers are also determined.
- Flow calculation
The costing structure should be precise and clear, especially if you rely on a minimum amount of funds as a basis for realizing your ideas and desires.
If you are going to open a full-fledged business, you will need 1 million rubles.
If you are going to open with minimal investment, the costs will be as follows:
- The registration or opening process will require - 10 thousand rubles;
- Website development and content - 20 thousand rubles;
- Payment for the services of an administrator-consultant - 20 thousand rubles.
- The total expense is 50 thousand rubles.
At the same time, you can get the prospects for significant savings if you do not pay for the services of an administrator-consultant, but carry out all the necessary actions yourself, you can also carry out the process of developing a site based on a standard constructor. Accordingly, the site will cost you for free.
As for the purchase of goods, in this case, a structure is formed for signing an agreement with intermediaries, taking into account the fact that you will take the goods for sale. In this situation, the cost of purchasing goods will be minimal.
- Assortment development
It is very important that your assortment is worked out to the smallest detail. Keep in mind that the best option would be to implement wholesale and retail trade. At the same time, set the cost of the wholesale format, for example, for packaging, and the more expensive option that can be purchased retail.
The best options for a wholesale format business are food products, but in this situation you will have to issue an additional permit. You can also use the option of selling household chemicals, cosmetics, household goods, etc.
That is, before you create an assortment that you will provide to potential customers, you will certainly need to competently approach the issue of studying demand. Also keep in mind that having a website allows you to get a significant number of customers. Since people from all over the country will be able to purchase your products.
- Advertising campaigns and cost calculation
Of course, it becomes clear that the advertising campaign is the basis of the initial attraction of customers. Among other things, you need to focus on promoting the resource. Remember that all the costs that you will invest in the process of promoting products through advertising or site optimization methods should be indicated in the business plan.
Planning- the basis of your success in the future. If you want there to be no negative aspects in the process of implementing your ideas, then you need to clearly define all the important points that you may encounter in the process of organizing a business. It is also necessary to clearly define the costs that will arise both at the initial stage and in the process of doing business.
Wholesale Business Ideas
The main element of a successful business is a competent and correct choice of direction. Only in this way will it be possible to actually find a solution that will become for you an indisputable basis for moving forward. Moreover, each idea needs to be clearly and accurately thought out, and possible risks, the level of competition, etc. should be analyzed. We suggest that you take an interest in such business options:
- Intermediary services between the wholesaler and the buyer. In this case, you can sell almost any product. It is this scheme that is the most rational, especially if you cannot invest a significant amount of funds in the development process. You can give preference to household chemicals, you can also sell things, children's goods, gifts and souvenirs. In principle, with proper organization, any product will find its buyer;
- A fairly relevant option for a wholesale business is the option of cooperation with China. From suppliers or directly from the manufacturer, goods are purchased at a low price. Subsequently, this product is sold with a 100% or more margin on domestic markets. You can even organize your own store, which will sell perfumes, underwear, clothes, toys, extraordinary gifts, etc .;
- The grocery business and the business associated with the wholesale of alcohol and cigarettes are considered relevant. Moreover, you can create your own online store, where you will sell goods in blocks, and not in boxes. That is, a small wholesale is formed, which will certainly be of interest to a significant number of potential customers.
In principle, there are a fairly significant number of options through which you can start your own business and achieve your goals, get the desired priorities for intensive development. It remains to work out a plan and choose the direction of your activity.
Important points in the process of starting and running a business
If you are starting a business from scratch, then you should still collect a certain amount of cash just in case. Even if you initially focus on cooperation with companies that provide payment by installments, anyway, you should understand that the product may not sell, and you still have to pay the supplier in order to maintain your reputation. Therefore, there should always be a reserve of funds.
Don't neglect your business plan. In fact, it is this aspect that will help you evaluate the prospects of a particular line of business, which means that you can make a competent and thoughtful choice of the direction that can actually become the basis for obtaining an independent financial plan for you.
Try to do everything possible to study the potential demand for a particular product as competently as possible. Discard those options for products that are not popular, although they have low prices. Remember that it is a well-chosen assortment that will become the basis of active development.
Study the prices of competitors and offer your customers lower cost options, because this is how you can create your own customer base, which will help you take your business to a completely different level in the future.
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