Businesses are currently divided into two types: wholesaling, which is the distribution of large quantity of products directly from the manufacturers and retailing where the goods are being sold to the direct consumer. In each type, there are advantages: Wholesale increases the opportunity to boost sales and revenue and als o to increase brand presence while retailing can help establish personal brand. Nowadays, business owners are venturing into both wholesaling and retailing to get the best of both worlds.
However, many companies who have started with one of these two would not dare risk getting into the other without considering the complexities the company may undertake.
Far from what people think, channeling your business towards retailing is easier and more profitable and more importantly, makes more sense when you are planning to extend your business and brand into a higher level.
Not only does the profit double if you have both wholesale and retail, your brand can also spread to a wider audience, as stated in the review conducted by The Peterson Group, wholesaler of mobile phone accessories in Taiwan which have also invested into several retail branches in Jakarta, Indonesia.
To invest into this new venture, you have to ask yourself the following questions:
- How much investment are you ready to make?
How much are you willing to delve into the retail game? This will determine your level of investment. Choices range from e-commerce to pop-up stores to franchising.
Moreover, for retail businesses, you cannot just expect the consumer to barge into your physical store and buy your product. You must consider the location, staff and other overhead cost. For an online store, you have to embark to critical and aggressive marketing strategy to break through the competitive internet traffic by other retailing businesses.
- Will it not conflict on your stock terms and agreement?
Opening up a retail store does not mean that you will have to give up on your wholesaling business. It would only mean that your task is doubled. Moreover, some of your clients will now see you as a competition from merely being a supplier. You may face verbal complaints or even loss of some of your clients. The key lies on treating them as partners, not underselling them.
- How will you sell your product?
Not only should you sell your products, you also have to market it. Building a presentable visual is a big plus in your new retailing business, whether it is a website or a physical store. You have to invest in both online and physical presence.