You’ve been working hard.

You have your branding down pat, you’ve developed a kickass product line, you have signed up for all the in-person markets you can find, and you are hard at work on the collaborations. Your website is ready, and you’re on all the popular selling websites (IYKYK).

Now, give yourself a pat on the back! You’ve done some really hard things and made a lot of progress in your brand.

You’re ready for the next level…or are you? 

Am I ready to start selling wholesale to retailers? 

Before you start reaching out to retailers and shops, you want to make sure you have some fundamental backend pieces in place. 

In fact, I recently chatted with a brand that had one product. It was a decent product, but they didn’t have any plans for expanding into a collection or even if they would re-manufacture once they sold through their stock. They really just wanted to move the stock and thought that wholesale might be the quickest way to do it.

I have been around and know what would have happened if they had tried to sell to retailers at this point. It would have been really hard for them. Their success would move more slowly (if at all) and they likely would have gotten frustrated and given up. They would have wasted a lot of time trying to build relationships only for those connections to fizzle out.

To make sure you aren’t wasting your time and getting frustrated, follow these basic foundation pieces for your brand.

#1 – You have scaled your product line. 

Going into a retailer with one product is really not going to rock their socks. However, if you’ve got a decent product line and know what it’ll take to be able to produce it at larger quantities, you’re well on your way to meeting the demands of wholesalers and retailers. 

Scaling your product line enhances your brand’s appeal and provides retailers with a broader range of options to choose from, increasing your chances of securing partnerships. Having a solid product line also shows retailers that you are invested in your own brand’s success.

#2 – You understand how your business and inventory work. 

You know your audience and why they buy your products. You know how your business operates and how your inventory moves at the DTC level. You’ll need this to forecast how your products will fare with retailers. You need to be all about numbers here and have a solid understanding of your best sellers.

#3 – You have a vision for your business’s future. 

We’re just getting started, right? You know how you want your business to grow over the next couple of years and have an idea of what it will take you to get there. Getting into wholesale isn’t for the person who only wants to operate for a year or two. It takes time to build up those connections, and truth be told, retailers don’t want to work with wishy-washy brands.

What you’ll need: a wholesale pricing strategy, a wholesale products catalogue and more!

Having those fundamental pieces in place is important. Really important. 

So if you’re nodding along and thinking, “Yeah Heather, I’ve got that, I’m good to go.” Hold your horses! Pump your brakes! Slow down! 

There’s still more work to do. You need to prepare your wholesale selling tools, like linesheets and T&C. What products will you offer to your wholesale partners? Will they be different from your online offerings? How will you sell your products and on what timelines? You also need to think about a wholesale pricing strategy that will give you a sensible profit margin while also being profitable for the retailer.

In fact, that is one area where many people come to me for help. They choose a number for their retail price without thinking about what is really involved. Some people may simply double their raw cost of goods and expect to make a profit. However, when you factor in all expenses and retailers’ expectations to ensure a stable profit and avoid needing to raise your prices too often.

Depending on your current inventory and manufacturing practices, it can take three to six months to prepare for wholesale. On top of preparing your sales tools and manufacturing, it takes time to build relationships with retailers. When launching into wholesale, you are playing the long game for growth, it’s not a get rich quick scheme. However, when wholesale is done right, it creates a solid foundation for stable growth.

Working with a wholesale business consultant to make the most of moving into retail stores

You don’t go on a trip without a GPS, so why are you starting your business on a new journey without someone to guide your way. That’s what I do. 

With over 15 years of experience in the sales and wholesale world, I’m here to help guide your way. I provide expert guidance on industry standards and expectations. With my experience I help you build out your back-end strategy, sales tools, sales channel strategy, and much more.

If you are interested in learning more about how wholesale can help your product business grow, book a call with me.