Finding and keeping wholesale customers is very important for any online business to thrive. In the same way that wholesale customers look for certain qualities in wholesale business owners to source from, it also generally applies on both sides. Remember that it should be a win-win relationship for both you and the wholesale customer.
In this post, we will discuss the general qualities of a potential wholesale customer.
Qualities of Good Potential Wholesale Customer
1. Can order in volume
Since wholesale prices are relatively lower than retail prices, wholesale customers must be able to order in large volume to compensate for the difference in pricing. As business owners, you must ensure that the wholesale prices are justifiable to the production costs and expenses incurred for the goods.
2. Can place consistent orders
You want to find wholesale customers who can order products consistently over a long period of time. Plus, they should already know how to place orders in your online store.
3. Have a wide base of customers and clientele
Look for wholesale customers who already have a wide base of customers. They can also help in promoting your products to their customers who can refer it to their family and friends. Good wholesale customers already know how to sell your products to their customers. You and the wholesale customers must have the same target customers to cater to.
According to Infoentrepreneurs, “When we start negotiation with a potential supplier, one of the first things we ask for are the contact details of some of their customers.”
4. Can communicate clearly
Good potential wholesale buyers communicate their needs and terms and conditions in sourcing products from you. Wholesale buyers must be able to keep you updated if they’re low on stocks of your products or any problems they encountered.
Communication between you and wholesale customers is very important in order to avoid problems. You need to establish a good working relationship through active communication with wholesale customers. And you have to actively engage wholesale customers.
Good wholesale customers will update you about product movement from time to time as to product delivery, sales, and shipment. If wholesale customers need assistance in selling your products, they need to communicate that also to you.
5. They need to be able to help grow your business
They need to be able to help you grow your business. Look for wholesale customers that are already successful and growing. In order for you to have a successful business, you must help your wholesale customers to grow and be successful too.
6. Willing to adhere to minimum suggested retail price
Considering that you are delivering products to a lot of wholesale customers, it can’t be denied that these customers will compete with each other. In the cutthroat business world, wholesale customers are willing to slash down the prices and cut down profits in order to make more sales.
It is imperative that you maintain a minimum suggested retail price for all wholesale customers. You need to provide a level playing field for both the big players and small players who buy products from you.
Having a minimum suggested retail price will also protect your margins as a business owner in order to ensure that wholesale customers are making profits and not losing money. If wholesale customers don’t make money after slashing down the prices, they will not be your customers for long, and you don’t want that to happen. Follow the strategy of Apple.
According to Tech Spot, “Apple’s first tactic is wholesale pricing that isn’t much cheaper than retail pricing according to Macworld. Best Buy can attest to this, although exact numbers remain a closely guarded secret. By minimizing reseller profit margins, Apple ensures those stores won’t stray too far from MSRP. Apple’s homogenous pricing theoretically helps small retailers. Although Tom’s Computer Shop won’t make the same fortune Best Buy makes with volume, Tom can compete with Best Buy’s prices (and certainly compete with service). If Tom’s hoping to get rich, though, he’ll likely want to diversify and start servicing those Macs, too.”
7. They accept your terms and conditions and pay on time
Make a standard term and conditions that wholesale customers sign. Depending on your contract or agreement, you already have negotiated the payment terms with the wholesale buyers.
Read on how to improve wholesale customer’s experience in our post here.