Although every business has its challenges, a few are unique to wholesalers. To have a successful wholesale business, you have to overcome these issues. Here are some wholesaler challenges and how to overcome them.
Problem: Knowing Exact Profit Margins per Product
Although the cost of goods sold will tell you your profits, you do not know your actual profits per product until after a year-end review. This may be too late for a wholesaler.
Solution: Real-Time Inventory Tracking
By tracking your inventory in real-time, you can measure exactly how much you make on each product and brand. By improving your inventory tracking software, you can view profit per product.
Problem: Uneven Supply and Demand
An uneven supply and demand chain can lead to overstock or shortages of your goods. If a customer needs something immediately and you don’t have it, you will have to order it from the supplier who may have to manufacture it.
Solution: Inventory Control and Lead Time Tracking
There are two solutions to this problem that can work together. With inventory tracking, you can see when you are low on a product and order more ahead of demand. Having an accurate idea of how much lead time each supplier needs makes the process of staying ahead of demand easier.
You can overcome many wholesaler challenges with proper record-keeping and product tracking. It just takes some planning.