What sets wholesale businesses and retail companies apart from one another? You may already have put your all into opening a business and you know exactly who your target market is. But the question is, would you rather go by the volume or do it slowly but surely and go retail? Either way, you still need an online inventory system that will keep you at ease in dealing with either wholesale volume or retail specifics.
First things first, know the disparity between wholesale and retail, its pros and cons, and decide later on which one you should opt for. Find out its benefits as well as pitfalls so you will eventually know when to grow and expand.
Volume. This one is the primary determining factor of a wholesale business. It sells products in bulk to different outlets or through retailers. This group usually sells directly to the customers while the retailers are the customers of the wholesalers and sell products with margins of profit.
Price. Wholesalers can sell their products at a way cheaper price as compared to resellers. By selling in bulk, wholesalers get to save some expenses in handling time and other costs like individual packaging and operating expenses. Retailer marks up the price to customers for profit.
Direct. Wholesalers may be the producer of the product or the manufacturer themselves, or they may not be but they are the initial recipients from point A, which is the supplier. Retailers deal with the wholesalers or through the salesperson of the wholesale company. Sometimes, retailers can also be the manufacturers themselves.
Relationships. Wholesalers usually establish a more profound relationship that requires more time and effort. The wholesalers know that customers purchase because of trust and confidence and that they become their ‘partners’ in the business. The relationship is mutually beneficial whereas retailers usually have a wide range of clientele that do not necessarily require a relationship, some just a one-time sale. There may be a repeat customer for retailers but not as solid as repeat customers of wholesalers. It only calls for short, straightforward, and transactional relationships.
Income. Both retail and wholesale are perfect opportunities to earn some income and grow profit. Determining which one really would depend on your market. Are you someone who would just want to sell directly to your customers from one transaction to another? Or would you rather sell more on a bigger scale with a larger inventory?
Customer-base. Retailers go direct to customers and sell to the public, so the customer base is wider. Wholesale deals with the retailers and sells behind-the-scenes.
Inventory. Wholesale and retail have different inventory requirements. Because the wholesaler has volume, a warehouse or storage area is filled with the products for sale and the inventory is more challenging. But with a dependable online inventory system that takes care of its inventory needs, it wouldn’t be even an issue at all. Retail, on the other hand, has some stocks in the store and perhaps a few items in the back-stock. As a retailer, a strong good grip on an online inventory system is also necessary to meet the needs of the customers and also anticipate reorders.
The last one Inventory, speaks volumes. Literally and figuratively. In any kind of business whether retail or wholesale, inventory is the bloodline of the business and it has to be monitored and managed meticulously. An online inventory system can do the work in managing the inventory and level of stocks of these businesses. It is a cloud-based software system that gives businesses a digitized and more systematic approach to monitor and control the stock inventory from what comes in is what goes out. An online inventory system makes the inventory task much easier, more accurate, promotes efficiency in maintaining stock levels, improves customer satisfaction, increases profitability, and runs the business is better and more systematic.
An effective online inventory system can be utilized by both retail and wholesale businesses and in any product-based industry. For wholesalers, an online inventory system means more accurate tracking of stocks. For retailers, an online inventory system can integrate systems with their POS systems to acquire better insights.
Whether you decide to do retail or wholesale, one thing that you need to put into account is your online inventory system. Introducing, EasyFIS. You are assured of a well-managed business that effectively monitors sales, checking live inventory stock quantity, and most significantly, the status of your business’s financial health. Most importantly, it is CAS (Computerized Accounting System) that is accredited to do government taxation as required by the Philippines.
Learn more about EasyFIS and make things easy as you grow and expand your business. Check out https://human-incubator.com/easy-fis/ for more details.