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3 Replies Latest reply: Jun 3, 2010 1:52 PM by RobClayton RSS

Retail or Wholesale Business Model?

Orchid Newbie
Currently Being Moderated

Two months ago I launched my all natural skin care line. I am passionate about my products and use them myself with great success. Friends and family also love my products. Setting up the business has taken time and effort. I have bought supplies, formulated, mixed, created, made mistakes, got packaging, met all govt. regulations (and there are a lot) researched everything from ingredients to insurance, developed my web site, colours, labels, logo etc. etc. . My problem however is that although I began the business as a retail online model I am beginning to lean the wholesale way. Retail means making the products, storing them effectively and selling them one at a time at a higher cost. Wholesale means making in large batches based on client needs, which is less effort, but lower margins per item. In addition this industry is saturated and standing out is difficult. Just so we're clear I have not had one sale yet and my husband jokes about this being one of my expensive hobbies. Any thoughts from anyone on how I should proceed with this - retail or wholesale? And how to go about it? I love business and all the background work, but don't enjoy being a salesperson. Any Advice?
  • Re: Retail or Wholesale Business Model?
    LUCKIEST Master
    Currently Being Moderated
    Retail or Wholesale

    Two suggestions. One, Visit your local SCORE office. SCORE is FREE.

    Two, Develop a business plan.

    Also go to Members page and share some info

     

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  • Re: Retail or Wholesale Business Model?
    UKWholesalers Newbie
    Currently Being Moderated
    Hi Orchid. As being a professional spokesperson, I would like to give you some handy tips. First of all doing a business does'nt mean just go and sell your product. You have to think in many different scenerios. Customers don't rely on what you are saying but they do rely on fact and figures. Yoiur skin care business is much popular now days as everyone is concious of theit beauty. You must create some ads, thinking of women majority using skin care products. Shifting your retail business to wholesale is not a bad idea. Where you sell less items one by one on higher margins, wholesale business can provide you with more profit if you sell items in bulk with lower margins. So you can do both business together and do remeber you should not only focus customers you are visible to you. Means do register yourself to some wholesale portals for more customers or buyers shopping online.

    I hope I have helped you in some way.

    Thank you.
    For your convenience you may look into some wholesale portals like below:
    www.wholesalepages.co.uk
    www.dailytrader.com
    www.usawholesalers.com..etc
  • Re: Retail or Wholesale Business Model?
    RobClayton Novice
    Currently Being Moderated
    The problem is that being a saleperson is the business. You can make the best product in the world but if you can't market it and sell it - no one will buy. Start by getting rid of your fears about selling - If you love your product then show that - others will either like it or not (out of your control).
    If your business takes off - then you can hire others to sell - but until then ...

    Some suggestions - why not try both - tow fronts if you will - keep the retail side going - get out and do local shows in people's homes like avon or pampered chef - this will help you hone your selling skills. But, also pursue the wholesale side (which also invloves selling). The iea is to find out which method works best for your business. If one trumps the other - then switch to that permenantly.

    You could also think about licensing out your product. Sell the rights to your formula and process - let other groups do the product and selling with their label - then sit back and collect a royality for eacfh unit sold.

    Business Junkie . org

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