Wholesale marketing research

Marketing research

Wholesale marketing research must begin with a study of retail demand for a certain range of goods, as well as the degree of satisfaction of end buyers with the availability, prices and quantities of goods offered by various sellers.

The presence of various options for implementing the wholesale trade business idea necessitates conducting marketing research to study the market, identify the level of competition, determine the niche in which the enterprise will operate, and also for a preliminary calculation of profitability.

Step 1: Exploring Retail

Wholesale marketing research should begin with a study of the characteristics of retail trade in goods.
Retailers sell goods that are supplied by wholesalers.
You can often see a picture, especially in small towns, when all retail stores sell the same product, competing with each other, and the population travels to large cities for the missing assortment. This phenomenon is precisely connected with the unsatisfactory work of retailers in studying the demand for goods.

A wholesaler who is able to offer the right, in-demand goods is able to quickly conquer the wholesale market and increase their own sales turnover.

Step 2: Market Capacity Calculation

The next step in marketing research should be to study the market capacity, that is, the ability of the market to process the volume of goods supplied. At the same time, it should be taken into account that the initial sales of new goods are approximately 2 times higher than subsequent deliveries.

1. Search for new buyers

A wholesaler who is focused on selling a certain range of goods, in order to expand sales volumes, needs to constantly look for new counterparties among retailers.

2. Search for new products

Another option for expanding the business is the constant adjustment of the range of goods and in-depth work on the study of demand. Marketing research in the wholesale trade must be carried out almost continuously to maintain the profitability of the business.

Step 3: Investigate Suppliers

Another side of marketing research, perhaps the most important, is the study of the sources of obtaining goods. The wholesaler receives goods either directly from the manufacturer or from other, larger wholesalers.

In both cases, it is necessary to closely monitor the actions and financial condition of counterparties. It is especially important to do this if the wholesale trade is carried out on the terms of supply contracts.

In this case, there is a risk of non-receipt, or untimely receipt of goods from suppliers. To minimize such risks in wholesale trade, payment systems with deferred payment are used. The size of the deferred payment and the conditions for the return of low-quality goods, prescribed in the contracts, are key factors for reducing the risks of wholesale trade.

The cost of implementing a business idea

As for the costs of implementing a wholesale business idea , their size depends on the implementation of the business idea.

1. If the wholesaler works according to the classical scheme, having his own warehouse, then the initial costs of organizing a wholesale business will consist of the costs of acquiring, repairing and equipping a wholesale warehouse for the proper organization of business processes.

In this case, it is necessary to try to automate the work of the warehouse as much as possible, use loading and unloading equipment, warehouse accounting software, and the technology of using pallets to place goods.

2. It is also necessary to provide for the equipment of good access roads, a place for parking trucks, sufficiently large openings of the warehouse for convenient supply of large trucks.

Delivery of goods to retailers can be carried out using transport companies. This allows you to use the capabilities of specialized organizations, however, when drawing up a business plan, it is necessary to take into account the costs of the services of transport companies.

3. A very profitable option for wholesale trade is the presence of a railway siding in the property or on lease.

In this case, it is possible to receive goods in large quantities, in railway cars, and, in the future, sell them in small wholesale. However, the maintenance of a railway siding and a wholesale warehouse is quite expensive, so the cost of their maintenance must be foreseen in advance when conducting marketing research and preparing a business plan.

The organization of wholesale trade is a rather complicated matter, both in terms of organizing business processes and in terms of the conditions of mutual settlements. Wholesale trade also requires constant monitoring of the availability of working capital, therefore, in order to implement the wholesale trade business idea, it is necessary to prepare a high-quality and detailed business plan .

On our website you can order a calculation of the profitability of the future wholesale enterprise, as well as a business plan , which will be prepared by highly qualified specialists.