There’s nothing that quite gives joy like when you start your own business and you becomes successful in the business. Sometimes, however, the road from start to finish will be full of hurdles. Usually the first two years of your wholesale distributorship business will be the “learning” years, the period you experience the ups and downs of being into a new business. However, it is good to know that many wholesale distributors came before you and many of them are now successful. With advice and inspiration from them, you can reach your desired goals. So, now let’s get to hear the advice and get inspired.
Distributorship business is one of the businesses that are lucrative anywhere you start it. Yet not all distributors are able to make it in the business. Many wholesale distributors are winkled out of business on the first two years of their business. This is not because they lack the capital but rather because they lack the success secret of the business. So, if you are just about to launch a new distributorship business or you are already into distributor business; below are 7 Success secret that will help you succeed in your distributorship business
Success secret to starting and running a profitable distributorship business
- Don’t sell on credit or overextend credit to customers
One of the major mistakes successful wholesale distributors avoid at all costs is the selling on credit and overextension of credit to customers. Selling should be strictly on cash-and-carry basis. If you must sell on credit, you must have to set credit limit upfront as well as the time the credit will elapse. Check your credit references meticulously when explaining your payment terms to a new customer. You can increase credit limits based on the customer’s payment history and purchase.
- Notify your supplier earlier for supply
Another major challenge successful distributor avoid is getting product from their suppliers on time. They notify their suppliers to fulfill orders faster and also provide realistic time frames to their customers. If you must success in a distributorship business, inventory and stock taking has to be part of your daily business. Know when there is short falls to product. To guarantee that those customers are well taken care of in the interim—and they will return back– their orders needs to be met timely.
- Always maintain good customer relationship
.As a new growing distributor, you have to pay attention to your consumer tastes and buying shifts—both of which can shatter your already growing business. Keep an eye on economic changes, what people are willing to spend at anytime, and other trends that could significantly impact your distributorship business. This is one of the qualities of a good entrepreneur. Teach your customer how they can manage their time and how they can address their needs and solve their problems in an efficient manner. You need not to know all the answers at the beginning, one step at a time.
- Build large customer base
Successful distributors have large customer base. Building large customer base is not one day job. It takes time and it requires you earning trusts and reputations from your customer. You have to understand that the most important thing you need to succeed as a distributor is not the product you are distributing but the buyers of the product you are distributing. So, building large a customer base is one of the success secret to running profitable distributorship business.
- Concentrate more on the turnover rather than on cost
Distribution business is a game of volume, more sales more profit. For example, a product you bought at the cost of $100 (N36000) and sold at $5 (N1800) profit requires that you sell more of the product to maximize profit. So, the more of the product you sale, the more profit you make. So, rather than turning your back on such distributorship business, you get in and concentrate on turnover.
- Always reach out to your customers
Whether in the name of advertisement or marketing, it is important you reach out to your customer. Don’t wait for your customers to find you, find them. Imagine if another distributor who distribute the same product as you do, first find them. Reaching out to your customers help in building relationship with them.
- Do promo if need be
This will help you acquire more customers especially when there is serious economy change.
In conclusion, I will guarantee your success if apply the above 7 success secret in your journey to profitable distributorship business.