Is Retail or Wholesale Right For Your Company?
Many businesses must make the decision to either be wholesale or retail. The difference between the two typically lies in whom the customer is. When a business is considered a wholesale distributor, they are typically targeting businesses as their customers. When they are selling their products they are selling in bulk rather than in single portions. Their headquarters or place of business is typically a warehouse or office, and they display little to no merchandise at this place.
When a company chooses to sell retail, they are targeting consumers rather than businesses. Although they might still sell in bulk, they are also selling their items in single portions. They need a location where they can target and bring in customers. They will also need to purchase fit for purpose industrial doors from somewhere like the Industrial Door Company. They display their merchandise to the public and typically use advertising to find their target market and bring them to their place of business.
Sometimes these two ways of selling products merge together and cannot be deciphered simply by the target audience. In this case, businesses are typically considered retail if they have a storefront and display merchandise. So for example, Costco sells in bulk and can target to sell to business, but they still have a storefront where they put their merchandise on display, meaning they are conforming the two ways of selling products together.
So which type of sales is better for your business? Take into account where you are in your business model, whether you are just starting out or have been in business for a while. It is possible to cross over from wholesale to retail. For example, American Apparel use to be typically a wholesale company sending their merchandise to other companies to be printed and then shipped to private parties, but since have opened numerous stores with their products. It is very possible to start as a wholesaler and then move to retail to make more money. A lot of business owners have found this to be successful. It means that when they can open up their retail side of things they can afford more and make their business look better. For example, even small things likes being able to afford Washroom Control Kits (if you have a restroom in your business), can really make people appreciate your business more since you have made an effort to accommodate more people. This is just one example though, however, it should give you a better idea of why starting off as a wholesale company and then moving on to retail makes sense.
If you are choosing to participate in the retail side of selling products, make sure your retail design is bringing in the right costumers. If you are looking for merchandise to sell at your retail store, you might want to check out somewhere like Blue Lake Products as they may be able to help you find where to look for wholesale merchandise.
Xibit Solutions is a retail design company who can help you set up your store in an efficient and pleasing manner. They can help you bring in customers, and keep your retail business successful.