Ex. 3.11. Read the following text and make your own decision

Ex. 3.11. Read the following text and make your own decision about your (future) business: 

Being a wholesaler gives you access to a diverse range of outlets and allows you to reach a large customer base. Offering your product as wholesale allows a larger audience access to your wares, therefore you are able to grow your business quickly. This can drive interest for your product, and can make you attractive to retailers, who can see that there is a solid audience for your goods and are more likely to want to stock your product.

Operating as a retailer is ideal if you want to retain complete control of your product lines and you enjoy having a hand on relationship with your customers. There is a lot to think about if you are in this position, but you are able to be responsive to the demands of your customers and their potentially changing needs and desires. 

When choosing the most appropriate avenue to market, you must consider which model fits best with:

  1. Your strengths and personality as a business owner
  2. The brand identity of your business and its product or products
  3. How best to reach your target market

Remember to evaluate the strengths of your product and your employees and assess the avenues open to you. Also, take into account how much control of the product you want to retain, and how much face-to-face contact with the consumer you need or want to have.

Here are a few other starting points:

  • If choosing to become a wholesaler, prioritize selling to retailers by providing your resellers with the best service to allow them to grow their business and trust you as a repeat supplier.
  • If choosing to focus on retail, prioritize the channels that will grow your business to reduce the need to rely on resellers to provide you with turnover.
  • If you feel able to manage both wholesale and retail together, think about strategies that will allow you to grow the retail side of your business while being able to sell to retailers without competing against yourself.

 

(From: https://www.brightpearl.com/sales-channel-strategy/retail-vs-wholesale)

  • What is your choice? Give your reasons to prove your decision.
  • If you are working in commerce, do you plan to leave your present job? Why?