There is money to be made with distributorship opportunities. Don’t make the mistake of waiting for them to knock on your door. There are any number of wholesalers in business today that are in dire need of distribution centers. The businesses can range from vending machines to medical supplies and everything in between.
This is where you enter the picture. You show these established wholesalers that you are more than ready to outsource their product as a distributor. The more you know about the product you wish to distribute the more the wholesaler will be impressed with your product knowledge.
Your next step is choosing a warehouse. Its size will be somewhat dependent on the size of the product you handle. If your present facilities are not quite large enough, consider renting space until you have made enough money to purchase more space. It is never wise to begin any new business with a lot of debt.
Plan on setting up a distribution center in the southwest United States. Product imports from Mexico and South America are expected to remain at high levels Being close to the source will cut down on your distribution costs. You will also want to set up a system that will aid you in keeping track of inventory entering and leaving your facility. Any computer system that offers the ability to monitor package labels will serve you well. Your order flow will always be at your fingertips.
You have to give special attention to the superiority of your product. It must come into your warehouse in a saleable condition and that is the way it must leave. Is the product being damaged before it reaches you or in the handling within your storehouse? This is something that you have to know and deal with right away if your business is to remain strong.
There are bound to be competitors that handle the same product that you do. To keep the retailers coming back to you, incentives must be offered that others do not offer. Extended credit is always popular. It allows the retailer to make money on some of their sales before they have to pay their bill with you. Once they have proven their credit worthiness you can set a higher purchasing limit for them.
Once your business has become large enough, you can begin thinking about the possibility of offering others distributorship opportunities. Now you are in a position of not only making money for yourself, but having others making money for you. As others come on board with you be sure and keep your pricing in line with your competitors rather than lose out on further sales due to inordinate costs.
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