Wholesale & Retail | The Best of Both Worlds
First things first, it’s very important to know the difference between the two roles… wholesalers sell goods to retailers in bulk lots and never directly to the consumer. Retailers, on the other hand, specialize only in selling direct to the consumer. In a nutshell, retailers act as the last middleman in the trade process. But the real question is, can you work both as a wholesaler and retailer?!? The answer is a big yes! It’s going to really depend on your dedication, resources, situation, and time.
There will be an endless stream of opportunities, circumstances, and situations that’ll appear in your life when you have such thoughts. For example, a wholesaler selling lower than the suggested retail price. Even a few will wonder what’s the point of a “retail price” when you don’t really have to stick to its standards, so in order to stay competitive, you’ll try to sell your product well below the other guy’s pricing structure. This is a risky move because now you’re trying to compete with the manufacturer. What’s the point of being a reseller if you’re competing against your own suppliers?
You should also know that there are several added perks of having the best of both worlds when you’re working both the manufacturer and consumer. This’ll be a better way to increase efficiency and shipping on your end. It’ll greatly up your product line, up your sales, and it’ll eventually lower the cost of distribution to almost nothing as well.
Fact is that it’s reasonably okay to work both angles at the same time, but numbers show that being a wholesaler is a greater return for your dollar. Products are resold at a better price, but in bulk, causing a massive increase in your profits.
On the other hand, retailers are favorable for some, and the main reason is cold-hard cash. Despite the management, not to mention the money it takes to set up a shop, retailers can still make much, much more. With a great brand and high quality products, you can still make a lot of money by focusing all of your attention on retail activities.
In the end, it all boils down to priorities, choices, and circumstances. For example, the person who works one sale at a time, retailing his or her line of goods is favorable for some. For others who manufacture product, wholesale is the obvious logical choice.