Posted by Cory List on 24th Jul 2014
How to Wholesale Cafes
Offering a new product always come with some risk and involves a lot of work, not to mention research. You are offering something new, something whose reception you cannot actually guarantee, so you need to be prepared for it.
To somehow guarantee that your business prospers and does well in the market, you can consider looking into the following:
- You can go around to different businesses and make a direct inquiry or survey about what they think about your product or service. In this encounter, you can take advantage of the opportunity to ask them about what wholesale prices are fair, or how much mark up they think is good enough, to make it worth their while.
- If you are going to offer specific products, decide if you are going have a consignment arrangement with your partners or if you will give the products to them at a wholesale package. Understand that the deal needs to be equally profitable for it to be of significant value, otherwise it will not go anywhere,
- You can approach business owners who are doing the same thing as you plan to do—but are not your direct competitors, so that you can gain their insight on things. Instead of doing things on your own, you can gain some guidance from someone who has already done what you are trying to do.
- Sell to distributors. Instead of going straight to businesses, you can choose to work with a middle man, such as a distributor who will carry your product to the different businesses, so you are saved the effort of trying to go around on your own. Of course, distributors will be asking for as much as 50-60% mark-up because they will incurring all kinds expenses when they offer your products to clients.
Whichever way you choose to go it would be smart to start small. Lay your efforts in a smaller scope so that you can control it and in case things do not go well, the loss will not be too painful. In every business, the first stage will be trial and error, so give yourself some space to err and make necessary adjustment, if necessary.