Ready, Set, Sell! Your Mini Guide to Preparing Inventory for Wholesale and Selling In Retail Stores Success
Hey there, fellow business friend! So, you're getting ready to take your business to the next level by diving into the exciting world of selling your products wholesale - aka selling to retail stores - so they can re-sell them in their fabulous stores? YAY!!! That's awesome news! Glad you’re ready to jump on this bandwagon that I’m always yelling from the mountain tops you need to get in on.
But before you start dreaming of your products flying off the shelves of your favorite retailer, let's talk about getting your inventory organized and ready to rock and roll. Inventory is always that thing people are like “wtf should I do?!” about. Sooooo let’s talk about it!
No. 1 - Take Stock of Your Stock:
First things first, let's do a little inventory dance. Take a good look at what you've got. What's selling like hotcakes, and what's gathering dust? Understanding your inventory's MVPs (Most Valuable Products) is key to shaping your wholesale strategy. If YOU do not understand what IS selling and what is NOT selling, you’re going to have problems, baby.
Knowing your WORST sellers is just as important as recognizing your BEST sellers. Once you know what’s a flop, you can use that data for the introduction of future products, along with coming up with ways to MOVE those collecting dust on the shelf products. (which we’ll talk about in the next point!)
No. 2 - Quality Control: No Funky Stuff Allowed!:
Nobody wants to buy a dud, right? So, put on your quality control hat and give your products the once-over. Make sure they're looking and performing their best. A happy customer is a repeat customer! And we all know that while most customers won’t over analyze, there’s always that one who will - those are the ones who like to blow up your reviews before they even reach out. Try not to give ‘em something to complain about.
And just because something is a little “off” doesn’t mean you can’t still sell it - you simply want to put it in a different area. Over at the Kitty Meow HQ we have an entire area of imperfect items called the “Loser Bin”. They aren’t REALLY losers, we just like to be funny, but we sell these products at an “imperfect perfect product” discount, and even bundle them together. While you want to make sure YOUR level of quality control is high, some customers simply don’t mind as much and prefer to take advantage of some savings!
No. 3 - Packaging Pizzazz
Packaging is everything when it comes to selling products, but ESPECIALLY when you’re looking to sell them in stores. Invest in packaging that's not just sturdy but screams, "Pick me up and buy me!" Start thinking about a cohesive look that offers your products brand recognition. Remember, packaging is your product's first impression, so make it count!
Don’t make the packaging so complicated to put together or costly that it eats into your bottom line and your TIME though. Packaging should be figured into the overall cost of your product. If you’re order in bulk, you can often pay to have the items already packaged for you - which might be a little more of an investment, but think of how much more time you’ll have to focus on actual needle moving (and MONEY MAKING) parts of your business.
No. 4 - Labeling: Because Nobody Likes a Mystery Product
Let's keep things crystal clear, shall we? Every product needs a label that tells its story – from ingredients to instructions and everything in between. You want to answer any questions a customer might have about your product before they have the opportunity to ask em. And don't forget the product SKUS! It's like your product's passport to the retail world. Every product should be assigned a SKU# (Stocking Keeping Unit), and stored in a master spreadsheet of all your products. You should print this SKU number on your product packaging too - or in my case of greeting cards, the actual product.
And if you’re wondering about barcodes - no need to rush this, but totally up to you. You can purchase GS1 US barcodes, but smaller retailers will not require these. They normally have their own in store bar coding systems and stickers. Larger retailers will require these and will give you instruction on how they want it set up for their order. You’ll know when it’s time to get barcodes though, and then tackle it from there!
No. 5 - Price It Right, Make Money
Ah, pricing – the ultimate balancing act. You want to make a profit, but you also don't want to scare off potential buyers. Find that sweet spot by considering production costs, competitor prices, and what your customers are willing to pay.
First things first, look for what other similar products are selling for. IMPORTANT: Make sure those products are also sold wholesale. It’s super easy to have a lower retail price if you aren’t also selling those same products wholesale. Then look at the all in COST of your product. If you do the math and it DOES NOT MAKE SENSE to sell those products at a 50% discount (that’s the standard wholesale price discount), then don’t do it! Maybe wholesale isn’t for you right now, but you can start planning for the future once you’re able to get your costs down.
No. 6 - Get Techy (or not) with Inventory Management
Honestly don’t think it matters if you’re using a spreadsheet or some high tech software to keep track of inventory - in the beginning you simply need to do SOMETHING. You’ll know when you’re for something more robust. The important thing is to make sure your inventory is organized, and ready to pull from the shelves to quickly package up orders, not unorganized and all over the place. You won’t be ready for the big times because you wouldn’t even be able to handle those larger wholesale orders with your stuff all over the place.
I personally use Quickbooks Inventory to keep track of in house inventory and to get clear reports of sales in each individual product and by product category across ALL platforms, but there are tons of other viable platforms out there too.
No. 7 - Ordering Inventory - WTH should I do?
When it comes to ordering inventory or knowing what to keep in stock, this is not a black and white issue. A lot of this depends on your personal needs and your own budget as a business owner. Simply know that the more in bulk you buy of a product, the better your margins will be. Start with what you can afford, pay attention to what’s selling, and continuing ordering more inventory when it feels right. Also keep in mind, the more skin you have in the game (aka product inventory in stock) the more motivation you’ll have to be aggressive in selling those products to get that investment back.
No. 8 - Make Friends, Not Just Sales
Networking isn't just for LinkedIn profiles or for posting pretty pics on your Instagram account – it's your ticket to wholesale success! Rub elbows with retailers at trade shows, industry events, business conferences (hey, did you know I own one?!), or even the local coffee shop. Building relationships is key to getting your foot in the door and keeping it there. Being successful in selling wholesale is ALL ABOUT RELATIONSHIPS. Do not skimp on this part!!!
No. 9 - Shipping Shenanigans
Ah, shipping – the demise of us all. When it comes to shipping - the retailer understands they’re responsible for the shipping costs, whatever it turns out to be - unless you’re specifically offering a free shipping promo. We use PirateShip in the Kitty Meow HQ because they have the best rates for USPS and UPS - so you can weigh your options. Bigger and heavier boxes usually have better rates with UPS. Always try to get the best rates for your retailers. Because let's face it, nobody likes paying an arm and a leg for shipping!
No. 10 - Stay Flexible and Keep Improving
Last but not least, keep experimenting, my friend! Your business is literally one giant experiment. You have to always continue to layer your efforts and strategies, be open to pivoting, know when to keep pushing, and know when to walk away and cut your loses. Keep an eye on sales, listen to customer feedback, and don't be afraid to tweak your strategy along the way. The retail landscape is always changing, so adaptability is key to staying ahead of the game. Remember, there is no such thing as “failure”. It’s all one giant learning lesson - preparing you for what’s ahead in the future.
BOOM! There you have it – Consider this your mini crash course in getting your inventory (aka PRODUCTS) ready for selling wholesale and the glory and pride of seeing them on the shelves of your favorite story. Or even better - having your friends send you pics when THEY see them in their favorite stores! So go forth, conquer those shelves, and turn those dreams into retail reality. You've got this, baby!! 🚀