Selling to retailers is a whole different ball game than selling directly to consumers. Since retailer buyers purchase inventory on such a larger scale, they are on the lookout for partners offering fair prices on their preferred inventory – as well as those who deliver on business operations.
From quick response times, to seamless back-of-house operations, to easy-to-navigate digital catalogs and more, retailers want both ease and efficiency when it comes to working with wholesalers. As a result, wholesalers must meet the agility and accuracy that retailers demand – ultimately helping them strengthen their overall back-of-house operations along the way, as well.
When it comes to strengthened operations, there is no stronger way to deliver on this than using technology to help. In fact, Deloitte’s Retail and Wholesale Distribution Outlook recently reported that “pragmatic adoption of technologies designed to remove friction and elevate the customer’s path to purchase journey may present retailers with ample opportunities to innovate and partner across their value chain.”
With this in mind, let’s explore strategies to boost your company’s ability to address and respond to the needs of retailers.
Tiered Pricing Rewards Bigger Purchases
Purchase minimums are no surprise for retailers purchasing from vendors, yet purchase minimums alone are not the only strategy wholesalers should consider when it comes to pricing.
Offering tiered pricing options to incentivize retail customers to make larger purchases is a great way to increase sell-thru and push inventory out faster. The more a retailer buys, in this case, the less they pay for each individual product. For instance, a retail buyer may purchase 300 units at $15 each, however if they exceed 500 units, you may reduce the unit price to $13.50 each.
For many retail buyers, the incentive of tiered pricing is just the push they need to increase the size of their wholesale purchase – helping your wholesale business effectively increase units sold along the way, as well.
Finally, remember that when incorporating this into your pricing strategy, you should cushion your original unit price to ensure you don’t lose money along the way due to incentivized pricing.
Barcodes Simplify Inventory Management
There are countless wholesalers for retailers to source inventory from, which means it’s important you make their experience top-notch from start to finish. This includes having high standards in place for product deliveries, accuracy of orders and ease in re-order options.
Since buyers purchase in bulk, it's difficult to provide this level of omnichannel accuracy without tracking your shipments and orders through a barcoded inventory management system.
Barcoding inventory helps wholesalers exceed customer expectations by reducing shrinkage, tracking errors and reducing the number of inaccurate shipments that are sent out. In addition, by barcoding your inventory, you can reduce processing costs on each order… ultimately resulting in higher margins and more satisfied customers.
Automate Orders to Facilitate Selling
As we touched on earlier, maintaining an agile retail operation is paramount to running your wholesale business effectively.
Automating your back-of-house processes can help you do this by increasing accuracy, profitability, and increasing supply chain transparency across platforms.
The question remains, however, why is this important?
Supply chain transparency enables you to view orders remotely to intercept errors, quickly respond to customer orders and to make sure you always have ideal inventory levels… hence, never having to tell a buyer “no” because you are out of stock for an item.
Additionally, if you choose to automate your back-of-house processes with Brightpearl, your software can automatically segment your customer base to identify selling opportunities while also processing reports – including sales data – in real-time.
Your wholesale selling strategy should be constantly evolving in order to remain competitive.
By implementing strategic pricing strategies, barcoding your inventory and automating your back-of-house processes, you will be in a stronger position to compete based on the effectiveness of your wholesale operation.
Remember… education is important as a wholesaler and innovation is a necessity. So partner with a solution provider such as Brightpearl, who will take the difficult busy work out of the equation so that your company operates seamlessly and is always in a prime position to thrive.