X

How To… Start A Wholesale, Distribution Business And Be Successful

 

 Man in Blue T-shirt and Blue Denim Jeans Standing Beside White Van

 

 

How To… Start A Wholesale, Distribution Business And Be Successful

 

A wholesale distribution business is where you buy from a manufacture or a mega distributor and sell to smaller wholesalers, retailers, and retail customers. Although you're not directly involved in the manufacturing of the products, you can still build a significant business in this industry by carefully buying and organizing your offerings and delivering them with high-quality customer service.

 

The Business…

Wholesaling is buying a large number of goods and then selling them to smaller wholesalers, retailers, and retail customers. Goods are bought in large quantities; the price per unit is much less, which is how a wholesale business becomes profitable. Simple.

 

Supplier Matters …. Choose Wisely

Choosing your supplier is very important to the success of your business, there are multiple things to consider when choosing your supplier. You need to consider where they are, in relation to your business and how easy and the cost of getting the goods to your location. Do they have minimum orders? What are their prices? What are their discounts on volume orders? 

 

Customer Service….

Remember you are in the service business … you are serving your customers not just a store selling products. Your customers are not just buying products from you, they are buying that the products will be delivered on time and be of the quality they expect.

Think about your returns policy. Make sure that you manage your stock levels, and that you inform your customers if something becomes unavailable. Stay on top of your deliveries, especially when the weather is poor and during the holiday season.  

 

Warehousing and Storage...

You will need storage space. However much space you have, it should be proofed or insulated to keep your product safe: Storage space for food products should be sealed to keep out pests. Your storage space should also have the infrastructure in place for easy loading in and out, especially if the product you carry is heavy or bulky. 

 

Delivery of Products...

To distribute your wholesale products you'll need a dependable vehicle large enough to carry the volume you will be distributing. When purchasing your vehicle, think ahead to when the customer base is built up can that vehicle still do the deliveries. You will need to calculate the minimum delivery that will it worth your while. 

 

 Pros and Cons of Wholesale Business

Pros

  • Bulk buying discounts, buy more save more
  • You see the products before you sell them
  • You’re more in control of the whole process
  • You can quickly and easily stay on top of your stock levels

Cons

  • You often have to order large quantities
  • You need somewhere to keep your inventory
  • There are likely to be more costs (overheads, packing, staff, etc)
  • There is a certain amount of risk, you buy the product with no guarantee you’ll sell it

 

Here are a few things that you must consider in starting:

  • Decide what you want to sell.
  • Choose a business name and register it.
  • Write a business plan.
  • Get your permits and licenses.
  • Location
  • Invest in technology

These are just the beginning steps you will need to figure out. We are going to go over the points. There is a lot of planning and it will take some time, but you will be very happy you took the time to plan properly. This is a very financially rewarding business if you start and manage your business properly.

 

Work out your margins and business model carefully before starting your wholesale distribution business to avoid costly mistakes.

 

Decide What You Want to Sell

There are plenty of options out there and you might already have an idea of what you want to sell.

Some options:

  • Food distribution, dry goods, and meats.
  • Building materials.
  • Electronic.
  • Furniture

 

Choose a Business Name and Register it.

Choose a name that is unique and check with the government agencies that register businesses if that name is available. Decide what legal structure you want for your business. Please consult with your accountant and or lawyer for guidance on the legal structure.

 

Write a Business Plan

When you’re writing a business plan, there are some things you should be sure to include. An executive summary, market analysis, and financial forecast. Your business plan can be written from scratch, using a business plan software program, or come from a business plan template. A well-written business plan will be a good guide to you as you grow your business.

 

License and Permits

This will vary based on your local jurisdiction and what you are selling. Please check with the government office that registers the company.

 

Location

Choosing an accessible location. This is very important to your success. Your market/customers must be able to reach you. You want to be in an area where there are a critical mass of retailers,

 

Invest in Technology

Your business will benefit from having up to date technology that can help you grow:

  • Inventory management. You should always be aware of your available inventory, upcoming orders, and incoming supplies. 
  • Cloud technology. It’s important to be able to access data remotely, especially if you have multiple operating locations, or are working from home. 
  • Customer management software. A good CRM is vital in tracking interactions, store client data, view the lead process. This will assist in maximizing your sales potential. 

 

If you are interested in starting your Wholesale Distribution business in Food/Dry Goods and Meats in Jamaica, we are looking for entrepreneurs who want to enter this lucrative industry. We are developing a franchise system and planning on opening 30 locations Island wide. Contact me at This email address is being protected from spambots. You need JavaScript enabled to view it.

Sisterhood Circle Welcomes Winston Wellington Chai...
Building Passive Rental Income -- Multifamily Home...
 

By accepting you will be accessing a service provided by a third-party external to https://caribnewsroom.com/

Subscribe

Latest Bloggers

Alethia Campbell
11 posts
Alethia Campbell is a second-year Integrated Ma...
Lou-Anique Hodges
10 posts
Lou-Anique Hodges is a 2nd year Integrated Mark...
Lee-Anna Webster
6 posts
Lee-Anna Webster has not set their biography yet
Kristen Francis
5 posts
Kristen Francis has not set their biography yet
Mark Purai
10 posts
Mark Purai has not set their biography yet

Calendar

Wait a minute, while we are rendering the calendar

Random Post

Health & Wellness
MESSAGE OF THE DAY:"It is time to access the vast information resources in your soul, which has been guarded by mind control and misinformation of the downpressors for millennia. It is a new day to re...
Sharon Parris Chambers
13 October 2021
Travel & Tourism
In our series of letters from African journalists, Elizabeth Ohene looks at plans to build a state-of-the-art complex in Ghana to honour the pioneering US black civil rights activist William Edward Bu...
Lou-Anique Hodges
09 July 2022
Travel & Tourism
Business
Caribbean News
The Kingdom of Saudi Arabia is one of the world's top twenty largest economies. They have a G.D.P of Eight Hundred billion US dollars, which positions the country to always be seeking out new investme...
Theo Chambers
18 March 2021
Financial & Fintech
  MONTEGO BAY, JAMAICA- March 18, 2021- A virtual press conference, which was facilitated by members of the State of the Africa Diaspora (SOAD) and the Economic Community of the Sixth Region (ECO-6) w...
Sharon Parris Chambers
11 September 2022
Business
Kingston, Jamaica, Sunday, September 11, 2022. The Advocates Network join many Jamaicans in expressing deep concern and unease about Michael Lee Chin’s plan to convert 3,000 acres of agricultural land...
Alethia Campbell
27 June 2022
Travel & Tourism
The first scheduled commercial flight into Ian Fleming International Airport since its renovation in 2011 was welcomed yesterday by an official delegation. As the destination’s tourism sector con...
Social Media
June 10, 2022, Panama City, Panama. State of the African Diaspora (SOAD) Emergency Response ERS has been working behind the scenes to assist African Students in Hungary, Germany and Czech Republic to ...
Theo Chambers
18 September 2020
Enviromental
Renewable energy, often referred to as clean energy, comes from natural sources or processes that are constantly replenished While renewable energy is often thought of as a new technology, harnes...
Sharon Parris Chambers
04 August 2021
Travel & Tourism
The death of respected academic Runoko Rashidi was announced late last night by his friends and family. He passed away while on a research trip to Egypt on 2 August. Messages of love, support and reme...
Theo Chambers
17 July 2020
Health & Wellness
With the widespread impact of COVID-19 on the nation’s health and the rising need for readily available therapies, alternative treatment sources are being studied with enthusiasm.  There is incre...
Mark Purai
03 October 2021
Travel & Tourism
The Gleaner - Gareth Davis Sr.   PORT MARIA, ST MARY Eventually, protection from COVID-19 will have to be a personal responsibility, as the Government cannot continue the containment protocols fo...
Alethia Campbell
18 June 2022
Social Media
Technology and AI
Marketing & Management Strategies
Almost everyone is supposed to have some knowledge of marketing, whether it be by direct, hands-on experience in studying and practicing the various principles or being a marketing representative or e...
Britany Forsythe
03 December 2020
Travel & Tourism
Business
There are 24 hours in a day, and what you accomplish in a day is based on how effectively you can manage your time. You do not need more hours, what you need are strategies and tips to effectively and...
Theo Chambers
11 September 2020
Health & Wellness
Most, if not all individuals are familiar with Shea Butter, but the Shea nut Oil is not as popular, this very versatile aromatherapy oil is a marvel, it has all the benefits of Shea Butter in oil form...
Sharon Parris Chambers
03 October 2020
Travel & Tourism
Africa – October 1, 2020 — The world had better brace itself for the State of the African Diaspora (SOAD) which is steadily progressing its vision and which in late September announced its adopti...
Sharon Parris Chambers
08 January 2021
Travel & Tourism
KINGSTON, Jamaica; January 05, 2021:  “Butch was truly an icon and innovator, philanthropist and perhaps the greatest marketer tourism has ever seen. Sandals is indeed the largest ...
Social Media
Recently appointed as a Minister of Youth of the State of the African Diaspora (SOAD), Her Excellency Olasubomi Iginla Aina MBE, has just initiated discussions with two former presidents of Nigeria: H...
Travel & Tourism
MONTEGO BAY, JAMAICA- March 13, 2021 – Sistas of D Ankh & Ma'at Sisterhood Circle Celebrates Women's Month with Sa Enya McBean. She will speak on the topic: 'How to Safeguard Your Phusic...
Theo Chambers
17 April 2021
Travel & Tourism
Health & Wellness
By: Alyssa Newcomb From engaging outside experts to interviewing shoppers, Sephora hopes its team effort to tackle racial bias will have an impact on the wider retail industry. Months before the killi...
CaribNewsroom
26 October 2020
Health & Wellness
Essential Energy’s products are truly unique in how they deal with the negative effects of electro-magnetic radiation, commonly referred to as EMFs.  Radio frequencies (RF), Microwaves (MW) are f...
Theo Chambers
03 April 2021
Travel & Tourism
Source - The Washington Post The Eastern Caribbean has created its own form of digital currency meant to help speed transactions and serve people without bank accounts. The Eastern Caribbean Central B...
Travel & Tourism
 Paris, July 1st, 2021 On July 1, 2021, on the occasion of the International Day of the African Diaspora, the Royal Chamber of State of the African Diaspora was launched. On this emblematic day, ...
Theo Chambers
14 April 2021
Travel & Tourism
Health & Wellness
Caribbean News
Que Pasa con el Caribe y Africa? By Felipe Noguera, Deputy Coordinator of the Caribbean Regional Coordinating Committee of the Pan Africanist and Indigenous Movement. "Love gives and forgives. Selfish...
Travel & Tourism
Kingston, Jamaica (April 5, 2021). The State of the African Diaspora, Jamaica on March 1, 2021 rolled out its campaign to sensitize, educate and register Jamaican citizens to access the African Kingdo...