Wholesale trade consists in the sale of a large number of goods to various retail enterprises, and not to end consumers. Many firms specialize in such work, and they act as intermediaries between manufacturers and retailers. Each such organization thinks about how to increase sales in wholesale trade, since the size of the profit received depends on this. To increase sales, you can use different tips and methods, and it is advisable to apply several methods together.
Wholesale Features
Wholesale organizations do not cooperate with direct customers; therefore, they specialize in retail companies. Such companies are large intermediaries, so they cooperate with numerous manufacturing and retail enterprises. Wholesale features include:
- goods are purchased at a low price directly from manufacturing companies, and significant purchases can provide a significant discount;
- purchased items are necessarily resold, therefore they are not used for processing or production activities;
- wholesalers always buy large quantities of goods, and also offer retail counterparts a wide and rich assortment;
- wholesale organization works with a huge number of retail stores;
- the company covers a large part of the market, therefore, it can specialize not only in one region of the country, but also in several cities at once.
Since such an activity has many specific features, business owners should be well versed in how to increase sales in wholesale. To do this, you can use not only standard and proven methods, but also introduce innovative and modern methods.
Sales Rules
Any owner of a wholesale organization is interested in how to increase sales in wholesale. To do this, initially a special department should be created, aimed at increasing the profits of the company. This department should work with the following principles in mind:
- the focus is on the direct client, rather than business profitability, so you need to focus on the needs and desires of retail stores;
- Particular attention is paid to cooperation with dealers and distributors;
- pricing policy should be designed in such a way that regular customers can count on discounts or other unique offers;
- individual company employees must constantly seek new customers;
- it is important to regularly monitor proposals and changes in the work of competitors in order to use their competitive advantages if necessary;
- it is necessary to constantly analyze the reviews left by customers, as this will prevent the loss of large and regular customers;
- sales department specialists should evaluate potential customers, since on the basis of a correctly conducted study, you can determine what methods can increase sales;
- work should be not only with regional, but also with federal networks;
- pricing policy should be transparent and understandable for each potential customer;
- remuneration should be offered to managers when the plan is overfulfilled.
Thanks to the above principles, any wholesale organization will be able to count on constant profit growth. Wholesale sales management should be carried out by a special department that will focus on working with customers and suppliers. In fact, there are many ways that contribute to revenue growth. But it is not always possible to use certain methods, since the specificity of the intermediary is taken into account.
Assortment Change
The most popular way to increase sales in wholesale is considered to be the expansion of the range. To do this, search for new suppliers that offer interesting products. Additionally, you can find manufacturing companies that sell various products at low cost.
By increasing the assortment, the wholesale organization will be able to enter new markets, as well as gain certain advantages over competitors. Since the purchasing power of the population is falling, the following rules are considered when choosing new products:
- the value of new goods should not be too high;
- service and guarantees should remain unchanged;
- goods should be interesting not only to retail enterprises, but also to direct consumers;
- if initially the company specialized in expensive goods, then it can introduce items to the range at an average or low price, which will allow it to enter new markets.
Due to the increase in assortment positions, one can count on an increase in the number of customers.
Pricing policy change
The cost of selling in wholesale is quite high, as enterprises are forced to cooperate with a huge number of manufacturing and retail enterprises, so there is a need for numerous workers who receive high salaries. Additionally, it is often the wholesalers who offer the delivery of goods by their own transport. Therefore, the margin on resale goods is considered high.
A change in pricing policy can lead to increased sales. Such actions are not always associated with the usual reduction in prices, since sometimes it is enough to simply make the pricing policy transparent so that it becomes clear to direct retail customers. Additionally, you can offer large customers significant discounts, rewards, or other advantageous offers.
Work with your own employees
If a business owner thinks about how to increase sales in wholesale trade, this indicates that his employees are not dealing with this issue. Therefore, it is under such conditions that it is advisable to begin work with hired specialists to create a team spirit. Every employee should try to increase sales. For this you need to use different ways of motivation.
If the salary of managers working in a wholesale organization will completely depend on the volume of sales, then all employees will work in such a way as to increase their income. Motivation can be not only material, therefore, it is advisable to further highlight the most successful managers by praise, issuing letters or prizes.
Continuous employee training
How to increase sales in wholesale? For this, it is advisable to employ only experienced and talented managers. It is not always possible to lure such specialists from other companies, so any wholesale organization can independently train its employees. For the work of each specialist to be successful and productive, the employer must remember the following points:
- managers should always undergo additional training, so the head of the company must send employees to continuing education courses, various trainings or other events aimed at training and development of specialists;
- tests are regularly conducted, the main purpose of which is to test the knowledge and skills of employees of the enterprise;
- the direct employer must have the skills to test employees, for which the company introduces different criteria for evaluating the effectiveness of specialists;
- if the management really notices that a certain employee is not coping with the tasks and is not interested in increasing sales, then you need to say goodbye to him.
Some wholesale companies even try to lure experienced managers from other enterprises. For this, a higher salary and interesting conditions for cooperation are offered.
Conducting a quality advertising campaign
Not always in wholesale trade, the sale of goods is accompanied by the offer to customers a large number of goods. Some firms specialize in only one or more products. Under such conditions, it is advisable to conduct a quality advertising campaign.
There are two different ways to advertise a product:
- initially, a wholesale organization can target retail companies that may be interested in promoting the goods offered;
- the second method is to advertise the product to direct consumers who will independently search for it in retail stores.
The second method of increasing sales is considered the most effective. To conduct a quality advertising campaign, it is advisable to use different ways, which include creating a television clip, advertising on the radio and working on social networks and the Internet.
Especially a lot of attention needs to be paid to the promotion of goods on the Internet. Many people prefer to learn a lot of information about a product before buying it, so there should be a lot of positive feedback on the item being sold on the Web. A quality advertising campaign can significantly increase wholesale sales. The method requires a significant amount of investment, but it quickly pays off due to the interest of customers and consumers.
Using cold calls and telemarketing
Each wholesale organization is interested in how to increase sales in wholesale trade, since the income of each employee and manager depends on this. To do this, it is important to increase the customer base, and for this you can use different methods.
Now it’s advisable to use telemarketing, which consists in the fact that specialists in the sales department using the Internet find numerous retail enterprises that are potential customers. Then cold calls are made, the main purpose of which is to identify the company's need for cooperation. When talking with a representative of a retail company, it is important to talk about the benefits of purchasing a particular product, the discounts offered, and other benefits of cooperation.
In addition to calls, you can use direct marketing, which consists in sending potential customers commercial letters with an offer to sign a contract. To prevent such emails from being considered spam, you need to reduce the number of recipients. It is necessary to concentrate exclusively on retail enterprises, which really can become future customers. At the same time, you need to constantly deal with the accounting of sales in wholesale trade in order to note which methods positively affect revenue.
General approaches to increase profits
The owner of any wholesale business should understand how to increase sales in wholesale. Therefore, some standard recommendations, which include:
- even if the company makes high profits, it should still constantly study the offers of competitors and monitor various changes in the market;
- the company must adapt to all changes in the market, which is the key to high profit;
- the sales department aims to regularly increase the number of customers, even if the profit is already high;
- a large company must have a marketing department aimed at identifying customer needs and promoting sales;
- especially much attention is paid to the development of competitive advantages, for which you need to know the weaknesses of competitors.
If the management of the company will take into account the above rules and features, then you can be sure of the constant development of the enterprise.
Accounting Rules
Accounting for the sale of goods in wholesale should be carried out by the appropriate department. For this, the following recommendations are taken into account:
- special computer programs are used, the main purpose of which is to track the number of goods sold, customer activity and growth in sales revenue;
- specialists should be engaged in the construction of schedules, with the help of which you can clearly understand how the results of the enterprise’s work are changing;
- regularly, employees of the department draw up special reports that are transferred to management, and on the basis of these documents the director will be able to understand what factors influenced the change in revenue;
- if profits begin to fall, then specialists should quickly begin to use one or another method of sales promotion.
Constant accounting of sales, tracking competitors and finding customers is the key to the success of any wholesale enterprise.
Conclusion
Every company owner needs to know how to increase wholesale sales. The profit depends on this. To increase revenue, you can use various unusual methods, which include conducting an advertising campaign, increasing the range and changing pricing policies.
When promoting goods, a wholesale organization can focus not only on retail enterprises, but also on end consumers.