Understanding how to increase wholesale sales means keeping up with the latest strategies and technology. And complex global supply chains and persistent expectations for lower wholesale prices from retail businesses only add to the woes of wholesale suppliers.
These challenges put increased pressure on the bottom line of wholesalers and make revenue generation a top priority.
In this blog, you’ll learn about:
- The common challenges faced by wholesale distributors.
- Effective lead generation techniques.
- How to expand your wholesale business.
Let’s get started!
What is a wholesale marketing strategy?
A wholesale marketing strategy is a comprehensive plan designed specifically for businesses that sell goods in bulk to:
- Retail stores.
- Distributors.
- Other companies.
This strategy focuses on how to increase wholesale sales using pricing models, digital marketing, and customer relationship management (CRM). The goal is to improve your brand visibility and build strong business-to-business (B2B) relationships.
Overall, your wholesale marketing strategy involves:
- Identifying target markets and demographics.
- Understanding the unique needs and demands of your customers.
- Developing a tailored approach on how to engage with them.
Challenges faced by wholesale distributors
Services required by manufacturers
Manufacturers often require specific workflows from different vendors. Examples of what you might have to manage include:
- Bulk ordering processes.
- Reliable distribution business services.
- Quality assurance..
Meeting these needs is challenging, but customizable software solutions help you stay on the ball. If you’re a QuickBooks or Xero user, consider integrating with Method to simplify workflows between your vendors.
Automating your manual, everyday processes reduces the time you spend on the things you can do, but don’t want to. As a result, you can focus your energy into activities that drive growth and profitability.
Retailer demands
Retailers often have different demands than other businesses. For example. they might:
- Negotiate bulk discounts.
- Request product diversification for various seasons.
- Require fast delivery times to multiple locations.
Drawing from our experience, a wholesaler that builds strong relationships with retailers is more likely to close deals.
The good news is that, with an integrated platform like Method, you can develop stronger relationships while you streamline your operations at the same time. A dedicated solution streamlines the ordering process so you can meet customer demands quickly and effectively.
Shipping costs
Our analysis has shown that finding a reliable shipping company that provides bulk discounts is a critical component of keeping your wholesale profit margins high. Shipping costs get expensive, so finding the right postal service is paramount.
You may need to make a business account with several shipping companies depending on which international countries you’re shipping to and the speed of delivery you require.
Inventory management
Prevent stock outs and track stock turnover with an efficient inventory management system. This can be managed with a solution like Method, which integrates with QuickBooks or Xero software and offers customized features to optimize your inventory.
This allows you to run promotions on products and run sales with confidence.
Shift to e-commerce
The shift to e-commerce has changed the way wholesalers operate. Creating an online presence and e-commerce sales strategy is now essential for your success as a wholesale company.
Through our practical knowledge, we recommend incorporating the following in your e-commerce platform:
- A section that showcases new products effectively (i.e., clear photographs of the product, detailed product descriptions, etc.)
- Clear return policies.
- Sales performance tracking (which you can capture using a CRM platform).
- A streamlined ordering process.
Why having a solid wholesale marketing strategy matters
Attracts your ideal clients
A well-defined marketing strategy helps you attract the right customera for your business to produce more focused and effective sales efforts. Sales team training on an ongoing basis ensures your team carries out your sales processes consistently.
Sets your business apart
A company that analyzes market trends regularly and improves product quality might be enough, but competition is stiff.
Our findings show that employing these tips sets your business apart::
- Create and follow digital marketing strategies.
- Ensure your budget invests in targeted marketing.
- Offer exceptional customer service.
- Set a pricing model that offers incentives for large orders and offers competitive pricing in your industry.
Ensures sustainable growth
A solid marketing strategy doesn’t just increase sales in the short term. In addition, it ensures long-term sustainable growth by building brand loyalty and driving customer retention.
Think about where you expect your company to be in the next five, ten, or twenty years. How will your demographic change over time? What technologies will you need to adapt to keep up with current trends?
How to increase wholesale sales
So, how can you increase your sales in wholesale markets? Throughout this post, we’ll look at four different ways you can do just that.
1. Use marketing insights to fuel your sales channels and strategy
The first step in increasing your wholesale sales is to make sure your marketing and sales teams are on the same page. Otherwise, it’s going to be a lot harder to sell your product.
To drive more sales, you need your sales team to leverage the deep knowledge your marketing team has about customer acquisition. From effective communication with prospects during sales outreach to what content resonates with your customers, Marketing has plenty of insights that Sales can use to close more deals.
2. Focus on relationship-building
In crowded spaces like wholesale and retail, it often comes down to who you know. So, while it’s important to reinforce customer relationship building as much as possible, building strong relationships with other business owners is just as important.
This is great to keep in mind if you’re wondering how to encourage wholesale customers to place orders in the first place.
From offering your top custoners discounts on high volume orders to expediting the delivery of their shipments, going the extra mile for your customers helps you secure more business and establish your reputation as a business that people want to buy goods from.
3. Automate your sales workflows
The next of these steps to improve your retail or wholesale business is to let your sales people focus on activities that add value to your company, instead of carrying out tedious admin tasks all day. Thankfully, this is what workflow automation is all about.
When it comes to automating your sales workflows, there are plenty of tools available to wholesalers.
The first is lead gen forms. Lead gen forms save your sales team time by simplifying the process of capturing leads and managing demand.
Placed directly on your website, lead gen forms capture the contact information of site visitors who want to learn more about your products. With lead gen forms, you automate lead collection, so sales reps can focus entirely on generating wholesale sales.
See an example of a web-to-lead form below.
Another helpful tool when it comes to automating sales workflows is dial automation software. Because they only put your sales reps on a call after a potential customer answers the phone, dial automation tools save time to let your reps connect with more leads in a day.
Using a CRM for wholesale is also a crucial part of increasing your sales. It’s particularly beneficial if you’re looking for how to boost online wholesale business.
From automatically updating your sales pipeline to enabling faster customer service, a CRM lets your sales team focus on revenue-generating activities. Not to mention, the best CRM solutions generate reports for data analysis and forecasting to drive actionablle insights.
4. Deliver a personalized sales experience
No matter your industry, personalizing your sales experience is one of the best ways to increase profitability.
Writing a customer’s name on a fitting room door or sending out birthday coupons are some examples of how the retail stores you sell to deliver personalized sales experiences.
To increase your wholesale sales, you’ll need to give your buyers an equally personalized experience with undivided attention. Based on our past experiences, improving customer service strategies in the wholesale trade will immediately yield positive results for your business.
For example, you can promote related products to help diversify a customer’s demand for your stock, or prepare a unique sales pitch for each lead. Note that a clear image or video showcasing your product goes a long way in capturing a lead’s attention.When it comes to learning how to increase wholesale sales, personalization is the most effective way to stand out among your competitors.
Lead generation for wholesale business
With almost 800,000 wholesale businesses in the U.S. alone, it’s safe to say that wholesaling isn’t for the faint of heart. This is why it’s crucial to understand how to increase wholesale sales in this industry.
Based on our observations, the best ideas when considering how to increase wholesale sales include:
- Networking and partnerships at events like trade shows and exhibitions.
- Digital marketing tools like SEO and social media (i.e., LinkedIn).
- Strategies to incentivize new buyers with a referral program.
- Developing strategies to advertise online to your target audience.
Our in-house subject experts condluded that these are all current and effective strategies wholesalers employ to bring in new leads.
How to expand wholesale business
Expanding a wholesale business can involve diversifying your product range and attracting a broader customer base by investing in digital marketing and improving your online sales platforms. Utilizing data analytics for market insights can significantly drive business growth and reach.
Recap: How to increase wholesale sales
Now that we’ve reviewed how to increase wholesale sales and create more business in retail, here are some actionable takeaways:
- Incorporate marketing insights into your wholesale sales strategy.
- Focus on building positive relationships in the wholesale and retail space.
- Use tools like a CRM and dial automation software to automate your sales workflows.
- Provide your leads and customers with a personalized sales experience.
- Generate new leads by requesting referrals from past customers.
How to increase wholesale sales: Frequently asked questions (FAQs)
How do I get more wholesale clients?
Our analysis has shown that a company that engages in effective networking is most successful when it comes to finding out how to increase wholesale sales.
When building your client base, you’ll see the best results when your company:
- Educates potential clients about product benefits.
- Includes a way to receive customer feedback and adaptation of said feedback.
- Research strategic pricing strategies to stay competitive.
- Offers incentives for larger purchases.
- Attracts new buyers as it expands into new markets.
- Participates in trade shows and collaborates with complementary businesses for promotional campaigns.
What is the difference between wholesale and retail?
Wholesale involves selling products to businesses or distributors at a discounted rate (B2B). On the other hand, retail involves selling products directly to end consumers at a marked up price (B2C), often referred to as the manufacturer’s recommended retail price (MSRP.)
How to start a B2B wholesale business?
Starting a B2B wholesale business requires you to:
- Identify your niche market.
- Source or manufacture your own products.
- Set competitive prices.
- Establish a sales and marketing strategy.
- Ensure an efficient supply chain.
For more ways to increase your wholesale sales, download this free ebook.