Wholesalers

F
or many independent retailers, using a wholesaler is an ideal way of doing business even in the 21st century.

Many suppliers are geared to dealing with a handful of large national accounts and there’s no getting away from the fact that dealing with the independent sector is complex and can be very costly. There are many outlets, dispersed across all parts of the British Isles, each generating its own orders and delivery requirements. Servicing this sector demands resources if it is to be serviced effectively and this costs money. The costs are a draw on resources, compounded by the high volume of relatively small orders generated by the sector. Many suppliers simply do not have in-house resources to manage this complex and very important market. Essentially, a wholesaler takes the sting out for suppliers by reducing their fulfilment costs.

Large minimum orders aren’t in the interests of the retailer. They want to order relatively small amounts to help their cash flow. This is especially important if we are, as many pundits reckon, heading for a recession. Neither do retailers want to tie up too much capital in stock at one time, especially if they are unsure how much of the product they will sell over an extended period of time. Having a pile of parasols left at the end of the summer is expensive – and not having enough means lost sales. Both affect the bottom line. In addition, many retailers have a limited amount of room for storing stock – they prefer to use as much space as they can for display.

In effect, the wholesaler becomes their stock room as most offer fast delivery. With the best will in the world, a retailer cannot hope to display everything their customers ask about. Perhaps a customer comes in asking ‘do you stock such and such?’ If the answer is no, then this means a lost sale. But if it’s a product stocked by your wholesaler then a retailer can confidently answer ‘yes, we can get it for you!’

Finally, it may come as a surprise to many retailers that wholesalers can offer most lines, in smaller quantities, with same day dispatch, at the same price as they can get by going direct to the various suppliers.
Suppliers

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