Profitable Wholesale Sector Niche

Full service wholesalers are typically either wholesale merchants or industrial distributors. Some specifics of wholesale merchants:

• They provide a full set of services, such as carrying stock, using a sales force, offering credit, making deliveries and providing management assistance.
• Wholesale merchants sell mostly to retailers. Industrial distributors are merchant wholesalers that sell to producers rather than to retailers.

As you probably know, manufacturers produce products and retailers sell them to end users. In between, however, there are a few key operators-also known as distributors-that serve to move the product from manufacturer to market.

Every company relies on a pool of customers to sell its products and/or services to. As a small-scale distributor, it is very imperative that you understand who your customers are going to be. You will have a much better idea what type of niche your new company can fill, once you have done the necessary research on your soon-to-be customers and competitors. Here are some important points about choosing a niche:

• Profitable niches in today’s wholesale distribution arena include, but are certainly not limited to, reselling products that require some degree of education on the seller’s part.
• In wholesale distribution, a niche is a particular area where your company can most excel and prosper-be it selling roller bearings, tie-dyed T-shirts or sneakers.
• For example – anyone can sell traditional pencils, but selling pencils that require a specific technique, are mechanical and need refills, is a task.
• A wholesale distributor can educate the customer, in the latter situation, the customer can then educate his own end user, about the benefits and operations of the mechanical pencil. This is where a wholesale distributor comes in extremely handy.
• What matters is not so much what you sell, but how you sell it.
• No matter what they’re selling, wholesale distributors are discovering ways to reaffirm their value to suppliers and customers by revealing the superior service they have to offer, as well as the cost-saving efficiencies created by those services.
• There are profitable opportunities in every industry-from beauty supplies to hand tools, beverages to snack foods.
• This mind-set opens up a wealth of opportunities to provide greater attention to the individual needs of customers, a chance to develop margin growth, and greater flexibility in product offerings and diversification of the business.

• While some entrepreneurs may find their niche in a diverse area, others may wish to specialize.
• The whole trick, of course, is to find that niche and make it work for you.
• Keep in mind, however, that too much product and geographical specialization can hamper success.
• If you have sold your (specific) product to the customer base within a 50-mile radius of your location in six months, you’ve already sold as much as you could.
• Adding other related items, diversifying your offerings is required after reaching a certain level.

As the owner of a wholesale distributorship, you will be buying goods to sell at a profit, much like a retailer would, except that you’ll be working in a business-to-business realm by selling to retail companies and other wholesale firms like your own, and not to the buying public. As a wholesale distributor, you will probably run an independently owned and operated firm that buys and sells products of which you have taken ownership. Hence, the decision to choose the product is completely yours. Usually, that decision will be based on your finances, the amount of time you’ll be able to devote to the business, and the resources available to you. You can go into the wholesale distribution arena with a full menu of goods or a limited selection.

Regardless of the choices you make, remember that market research provides critical information that enables a business to successfully go to market, and wholesale distributors should do as much as they can-on an ongoing basis. Market research involves surveying the market to know what people are interested in. I have always emphasised on the importance of having a good website for your company because it can act as your best tool for marketing and sales. A poorly designed website can repulse people from your business and can cause you to lose customers before you even have them. Get in touch with HyperEffects to work on creating, enhancing and making the website of your company more user-friendly. Our websites typically display a clear call for action message to converge views into actions, which holds the customer’s interest and makes it easier for them to take the right action.

It is better to do simple research routinely than to shell out a lot of money once on a big research information project that may quickly become outdated.