Why not wholesale?
If you’re a creative type, then wholesale can get rather dull.
A large portion of your time will be spent managing logistics: getting products to a specific location, managing the manufacturing process as well as maintaining and tracking inventory.
You will have to spend time vetting potential clients, including their creditworthiness to ensure you aren’t transacting business with shady characters.
Not conducting this research can lead to lost funds and lost inventory.
Typically, these functions increase overhead. That requires a clear picture of job costing and profitability tracking as you hire more employees. B2B also involves the creation of easy-to-pay invoices that include:
- Customer purchase order (PO) numbers or billing codes
- Itemized lists of goods and custom pricing
- Lengthier payment terms
If your product lends itself to mass production, this might be a non-issue. But if you toil away on every piece, then selling wholesale might deplete your resources quickly.
Wholesale or retail? Maybe both
Wholesale is excellent for people who can mass-produce a product and get it to market efficiently. It’s also a more professional environment, as you will be interacting with other business people, and not necessarily the public.
If you feel you function better in a more formal work environment or consider yourself business savvy, wholesale might be the business model for you.
Also remember, you don’t have to choose one versus the other. In many cases, growing businesses do both. That’s we’ve created a detailed guide with ten tips on how to wholesale to retailers as a retailer.
Being able to sell your own creations and manage your own business can provide you the level of freedom you may be yearning for; whether as a retailer or a wholesaler, you can achieve this financial freedom and create a successful enterprise for yourself. Just make sure to choose the right business model for you to avoid unnecessary stress later.