Q&A with Therese from Small Business Collaborative
How do you know if your products are suitable for wholesale?
Most products could be suitable if you can produce volume (doesn't have to be 1000's) at a consistent quantity and your process is not super time consuming. If it is, you could still wholesale your products if your margins allow it but it will be tougher to make the numbers work for you.
What sort of margin do retailers expect when selling wholesale?
On average a retailer will expect around 50% discount on the ex VAT recommended retail price for most product types. If you are selling to very large retailers they may want more. Your recommended retail price or RRP is the same as whatever you are selling your products at to your customers. This means that if you sell your products at £10 your retailers would expect to pay around £4.16 for it.
Are there any particulars I should look for when looking at a wholesale contract?
We often don't refer to a contract but you as a supplier set your terms and conditions that your stockists need to follow. If you're selling to a large retailer they will have their own terms and it is very important you read and understand these before agreeing to work with them and quoting them any final prices.
How should I approach a retailer to sell to?
The most common way to approach now days is by email. Make your pitch personal, and make sure to include everything that a retailer need to know to buy from you. Your initial approach should include your line sheet or catalogue. Do not email a buyer and ask if you can send them a catalogue.
What type of information will a retailer want initially?
They want to know what makes your products special, your retail price, your wholesale price, your pack size, minimum order, carriage paid, payment terms and lead times. All of this information should be in your line sheet or catalogue.
What should you do if you don't hear back?
Follow up and if you still don't hear back, follow up again. On average it takes 6 follow ups or more to get a sale.
Do retailers generally look for more established brands to buy wholesale from or can you start anytime?
You can definitely start right from the start but do make sure are clear on your prices and margins before you start. If not, you may find that you work really hard to get going but retailers can't buy from you because you are not offering them a margin that works for them.