How Wholesalers Should Sell to Retailers

Mark Freidin

23rd Feb 2014

Michael Holtzer provides some tips to understand how wholesalers should be working with retailers. 

5 important Tips to That  Wholesalers should follow in selling to Retailers

1. Understand sell through and stock holding at the retailer
2. Keep your SKU’s tight – if you introduce new product, delete old product
3. Help the retailer clear old stock – have an action plan to sell off old stock either through the retailer or through your own outlets
4. Meet with the retailer at all levels (sales, IT, warehouse, etc.) – work with them, not against them
5. Ensure your Merchandise Planning department has the proper processes in place – OTB, proper hierarchies, KPIs’, etc.

Wholetailing – wholesalers understanding how to see the sale through to its conclusion – to the consumer. Wholesalers that concentrate only on sell in are like golfers that don’t follow through with their swing. They hit the ball but it does not maximise the distance. Selling into a retailer gets the immediate sale, but does not maximise the potential of doing it correctly.

Wholetailing – wholesalers need to think more like retailers – they need to see and understand the data that the retailers do

B2B2C = Good wholesale

Wholesale businesses have to stop assuming that there sale stops when they sell to the retailer. Ultimately, sell in doesn’t matter. Sell through is the only thing that counts. Yes, you may have a great week or month during a new product launch, but if the product sits on the shelves, or becomes unbalanced, the retailer will either not buy more, return stock or want a big discount to clear it. That when businesses go from high success to trouble.

Working properly with the retailer and understanding their issues with your stock is imperative to succeed in these tough times. Working with the retailer to discuss and control product mixes, grading, replenishment models, etc. is not that difficult and will reap great rewards. Work on maximising sales, margins and stock turns – it is not about winning every battle, but achieving the final goal.

Michael Holtzer is a Consultant at MBH Retail