If you feel your existing retail price is too low to support wholesale, you’ll need to look into raising prices.
Set your minimum order amount
When you’re selling retail, you have no control over how much your customer buys.
By moving into wholesale, you’ll be the one who decides how many of every product your customers have to purchase to enjoy your wholesale discount. Basically, your minimum order amount allows you to make up for your reduced prices by selling larger volumes, which in turn should encourage economies of scale.
Having minimum order quantities also means you’ll be able to discourage buyers who are looking to shop at the lowest price, while building a strong relationship with clients who truly value your products.
Set your drop date
Your drop date is the date your products are available for purchase. So on your end, you need to ensure that you have enough products on hand to cater to both wholesale and retail demand.
If you have enough products in stock and you don’t have to worry about perishable products, you can always leave your drop date as immediate. However, if you’re dealing with perishable products or you’re already running low on stock, it might be time to set your drop date some time in the future after taking your lead time into account.
To ensure your drop date is somewhere in the near future, check out these tips on reducing your lead time.
Draft your payment terms
In our line sheet generator, there’s a box on the top right corner for writing notes about payment terms.
Payment terms are usually either upon shipment of the order, Net-30, Net 60, or Net 90. Net terms just means you expect your customer to pay for the invoice in a specific number of days. But do bear in mind that setting Net-30 payment terms doesn’t mean you will get paid on time, as debtors may still pay late, regardless of when your payment terms are due.
So if getting paid within a certain time frame is really important for your business, you may want to limit your net terms to a shorter period. For more information on payment terms and invoicing, we have some tips on creating effective invoices.
In addition, you can also add other incentives to get retailers to sign on with you, such as the opportunity of having exclusive rights to your brand within a certain vicinity, or by throwing in some great photos retailers can use for their online store.
And with this, you’re done with creating your line sheet with our line sheet generator! Now, all you have to do is package it with an introduction letter, and send it off to some potential retailers.
Wholesaling to the right retailer - It’s a match!
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