Boost your business with wholesale
I love Dragons Den, and so I have been watching each and every episode religiously as I do every time a new season comes on. And this season has not disappointed.
The last episode aired last on Sunday night and it was great. I noticed something, all the businesses that showed promising traction were businesses that were applying wholesale as a growth strategy.
I say it all the time, but it really is true you can not be in all places at all times but through wholesale, you can expand your brand and have growing presence and most importantly have sales.
I would just like to look at two examples.
- A Gluten Free food brand
- Pitching for £75,000 for 5% of her B-Tempted business
- Launched the business in 2012 - has turnover in excess of £500,000
It seems like a very promising business doing well, with stockists like Selfridges and Harrods for the tasty vegan cakes.
Yet, when Dragons Den' Peter Jones delves a little deeper, he realises that the business is not actually growing. But Sarah the business owner, explains the combination of factors as to why.
One lesson that can be learnt from this, is picking the right retail partners. Depending on your wholesale strategy you may enter or choose to be stocked in high-end, well-known retail names like Selfridges and Harrods. However, they may not be what is best for the growth of your business!
Bear with me here. I am not saying these retailers are bad for business because these names can give your business clout and recognition. To be listed here is no mean feat. However expanding and making money with wholesale is about creating visibility and partnering with the RIGHT retail or business environments where you can reach more of your customers. And this may not always be the case if you pick bespoke and standalone boutiques or department stores. In this instance, Sarah defends her business to say she is branching out and is going to have 3 of her product range stocked in 150 Tesco express stores.
This is huge of course, this will give her business greater brand presence for one and bigger business. This Tesco account alone will bring her business £180,000 she states. Not only that she mentions she will be growing her business by selling into with cafes, now can you just imagine how many cafes they are in the UK alone, this is BIG business and lastly, Sarah mentions that she is in talks with Gourmet UK Rail now these are big fat contracts. And exactly what you should be aiming for regardless of your product. Partner with retailers or other businesses to leverage their audience to help build brand visibility and get your business growing.
So think strategic when planning your wholesale and retail partnerships, it is not always in the glossy names that you will make money. If you are lost and need help on how to grow your business into wholesale I am here to help of course. You can book in a consulting session with me and I would be happy to run through your business and show you how you can expand and grow your business using wholesale!