The Wholesale Forums

[buyitonlinehere]

This is a interesting thread. Even if you stop wholesalers selling to the general public what is to stop them setting up another company that just sell retail. Therefore this will still happen.

But good luck with it.

From
Doug

[hardwareheroes]

Originally Posted by buyitonlinehere

Even if you stop wholesalers selling to the general public what is to stop them setting up another company that just sell retail.

I myself do that but am at pains to add - the wholesale side of the business offers a discount of between 30 and 40 % over the retail prices charged on the other side of the fence. They are two distinct businesses with different names but offer the same products to different people.

[Anthony]

Originally Posted by buyitonlinehere

This is a interesting thread. Even if you stop wholesalers selling to the general public what is to stop them setting up another company that just sell retail. Therefore this will still happen.

This is common practice... And why not?

Every channel that is profitable might as well be exploited. That said, some wholesalers avoid it to ensure the distribution chain remains profitable all the way down. Selling direct to consumers can often lower the end retail price and have adverse affects on those retailing the products in the supply chain.

[Tango34uk]

I think it depends on how you want to treat your main customers.

I used to work for a company that sold military items wholesale (now I wonder where my database came from!), well they sold Trade but also Retail. The trade customers got to the point where they were seeing customers go directly to this company and purchase an item at the same price they would have done, but not have to pay for shipping.

Now the same company sells hardly any items to UK Trade, their name is not god any more (by UK Military - Their best customers) and they have issues selling any of their items in the UK.

I always said that they should have charged one price TRADE, and if they were going to sell retail, then a much higher price to retail customers. - By doing that they would have kept their trade customers a lot happier.

If / When I follow the trade route, I will advertise the item, and then give a page of links to the companies they can purchase the item from. That way I help my trade customers, who then hopefully help me by purchasing more?

[Pete]

I have done it all at the same time. In fact, I sold at 6 different price levels, to different levels in the distribution channel I was involved with.

Made no bones about it, everyone knew I was doing what I did.

The business was auto parts and there were many levels, with matching (color coded) price sheets provided by the manufacturers.

Here they were -

Retail - never sold anything at that price. It was a price used by my wholesale installer customers to sell to their customers.

Yellow Price - Non-stocking Dealer. This was designed for garages and shops who did not maintain an inventory of their own and only bought as needed. We also used this price for the "retail" walk-in customers - about 40% of total sales.

Green - Stocking Dealer - about 10% less than Yellow. Used for garages, service stations, car dealers, etc. Also fleets.

Pink - Installer - Used for tire shops, mass merchandisers, volume sellers.

Blue - Jobber - Other auto parts stores, large fleets, and "whatever it takes to gain a customer".

Salmon - Master Installer - Authorized major chains, muffler shops, etc. We would often get a rebate from the manufacturer for documented sales at this level.

White - Our cost, less volume discounts, dated billing, free TV's, trips to Bermuda, etc.

Dating terms - as much as 90 days no pay, then 9 equal monthly payments for a size able order. Many orders came with 3 equal monthly payments or 1 month no pay, then 3.

Whenever I was questioned about selling to all levels, I replied that it was the combined purchase volume that made it possible to offer the prices and service we did.
.

[buyitonlinehere]

Originally Posted by Anthony

This is common practice... And why not?

Every channel that is profitable might as well be exploited. That said, some wholesalers avoid it to ensure the distribution chain remains profitable all the way down. Selling direct to consumers can often lower the end retail price and have adverse affects on those retailing the products in the supply chain.

I completely agree, if I was a wholesaler I would not want someone telling me what I could do or not do. Some of my suppliers I use do that.

Every customer has a choice you need to make sure that they choice you.

From
Doug

[xcat]

We are wholesalers of ex catalogue stock, and we retail to the GP through our shops. We do not retail at less that 50% below catalogue prices so as not to hurt our wholesale customers. I would not dream of selling at wholesale prices to the GP, its madness.

[lennyscotland]

WELL WELL WELL congratulations!!! you mannaged to cover Wholesale, English Language, world Politics, the Intentions of a computer programmer and STILL make it full circle back to Wholesale!

WELL DONE GUYS!!!

[xcat]

Lol!

[yadig22]

Originally Posted by Pete

You all are the nitpickingest bunch I'v ever encountered.

Must be many cases of head lice in the UK to keep you in practice......
.

lol @ head lice