For small businesses just getting started, retail versus wholesale can feel like a make it or break it decision. Worse, complicated formulas and a host of acronyms cloud the already murky waters.
The truth is determining which model is right for you doesn’t mean you have to understand electronic data interchanges (EDI)—the system most wholesalers use to place and receive orders.
Nor do you have to calculate your COGS (cost of goods sold), CAC (customer acquisition cost), and CLTV (customer lifetime value) from the jump—all terms associated with retail.
Instead of weighing you down with unnecessary jargon: Let’s briefly examine the what, why, and why not of retail and wholesale.
Once the big picture comes into clear focus, then you can tackle the rest.