8 Costly Mistakes Wholesalers Must Avoid

mistakes wholesalers must avoid

Gold jewellery wholesalers in UK might have a profitable business in their hands but not without meeting any hurdles in their paths. In starting or expanding a business, mistakes are likely to make you stumble on your way but you should treat these as challenges for you to improve and not to weaken your resolve to go on.

Here are the blunders any gold jewellery wholesalers in UK may encounter:

  1.  Zero knowledge about your product. Know your product. If you don’t, how are you going to sell it to retailers? Gold might be an in demand jewelry but you’re not the only one offering it. According to WAHM.com, you should “find out how it is used, where it is made, how long it will last and how well it is made.” 

  2. Offering too many different products. Everything might get out of hand when you have too much on your plate. Wide array of items don’t easily translates to bigger sales. Just focus on a particular product line, know it very well so you can market it with ease.

  3. Not identifying your target market. This goes hand in hand with the first item on this list. You must have a specific target market in mind when you choose a product. WAHM.com advises that you should also understand “the demographics of both your wholesale customers, and the individuals who ultimately purchase the products.”

  4. Poor inventory analysis. This is one of the pitfalls of wholesaling. Whether you’re distributing frozen goods or are a gold jewellery wholesaler in UK, you must be able to monitor your inventory well. Eazystock identifies the three inventory analysis problems such as:

    • Not dealing with excess stock.
    • Poor handling of inventory obsolescence.
    • Not analyzing inventory seasonality.

  5. Outdated business plan. As stated by BiggerPockets, “business plan is your GPS.” Or to put it in layman’s term, it is your game plan. When was the last time you’ve reviewed it? Two? Three years ago? Every year there is a new trend buzzing in your industry. The market like an evolving organism and you must able adapt to it. Robert J.R. Graham points out in his blog that “customers demand newer, flashier, cheaper, better products.” As a gold jewellery wholesaler in UK, are you up for it?

  6. Establishing a fixed price. Not all customers, or in your case, retailers are created equal. They have different demands therefore different tag prices on their heads. Also remember that you’ll still deal with consumers who don’t buy in bulk as well. The standard rule is “always sell your products to your retailers at a lower price than you do to your consumers,” Shopify tells.

  7. Absence of wholesale pricing matrix. You’re not a wholesaler if you don’t have these two: 1) setting a minimum order and 2) advanced wholesale pricing, according to Shopify. This is in order to increase revenues and to encourage bulk orders. That is the whole point of wholesaling, right?

  8. Thinking it is only a numbers game. Sticking to a mentality “wholesale business is all about gaining more sales” is not enough to keep your boat from sinking. As always, quality will never beat quantity. Improve your products. Research your ever-changing market. Hire extra help when needed. In this way, you can be one of the gold jewellery wholesalers in UK retailers opt to do business with.

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