Many individuals, particularly those of white collar status, have come to start their own businesses as wholesale distributors. Much of these individuals are those that wanted to earn more profit than that of their own jobs. Or those that wanted to manage and earn their own income without working for somebody else. Or even those that just wanted experience more challenging tasks that managing a business can only provide.
If you’re one of those individuals, then this is the right business for you, as a wholesale distributor. In this line of business, you will be experiencing a lot of haggling, trade of goods, and profit managing. But because of modern day business of trade, wholesaling has become one of the largest known industries in the world.
The Life of a Distributor
As you know, products go through processes before it gets to the hands of its consumers. Manufacturers produce products such as canned goods for example. Then, the canned goods go through the process of being delivered to the retailers. Then the retailers sell those canned goods to their respective consumers. But there is a process in between the two, the manufacturer and retailer. And this is where the distributors are commonly found.
Distributors work as it’s named after, to distribute goods from manufacturers to retailers. Some distributors also work as retailers, selling goods directly to the consumers or the end-users. But more commonly, distributor works selling their goods to retailers or another distributor in which the process of goods reaching the end-user continues on.
Wholesale trade includes establishments that sell their products directly to retailers, merchants, contractors and/or industrial, institutional and commercial users.
Wholesale distribution firms, which sell both durable goods which include furniture, office equipment, industrial supplies and other goods that can be used repeatedly, and nondurable goods which includes printing and writing paper, groceries, chemicals and periodicals, don’t sell to ultimate household consumers.
There are three types of operations that can perform the functions of wholesale trade; these are the wholesale distributors, manufacturers’ sales branches and offices; and agents or brokers or commission agents. But as for you, as you being the wholesale distributor, you will be working as an individual who independently owns and operates a firm that will buy and sell products to retailers and other wholesale distributors. Generally, such operations are run from one or more warehouses where inventory goods are received and later shipped to customers.
To put it simply, as the owner of a grossister distributorship business, you will have to buy products or goods to sell at a price that you can gain profit, much like what a retail business do. But the only difference of a retail business from wholesale distributorship business is that you won’t have to go out on the end-user’s field, but instead work directly with other business holders such as retail, and they are the ones responsible in delivering the goods to the consumers.
Before Your Journey
Now before taking on the wholesale distributorship business, it is necessary to learn what it takes to become a successful wholesale distributor.
Today, total U.S. wholesale distributor sales are approximately $3.2 trillion. Since 1987, wholesale distributors’ share of U.S. private industry gross domestic product or the GDP has remained steady at 7 percent, with segments ranging from grocery and food-service distributors in which make up 13 percent of the total, or $424.7 billion in revenues to furniture and home furnishings wholesalers which comprise 2 percent of the total, or $48.7 billion in revenues.
If you look at it in a certain point of view, the field of wholesale distribution is really just a game of buying and selling goods or stuff. And the way to win it is by having good negotiating skills, keen sense of knowing what’s hot and what’s not such as in a wholesale clothing business, and a good sense of salesmanship.
In this line of business, it is required for you to have the necessary experience on how to handle a business, having skills of all areas are most preferred. Most experts agree that having a sales background can really make a cut in a business of wholesale distributorship, such as also having public relational skills that is also included in being a salesperson.