• The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success
  1. Join 50,000+ entrepreneurs
    who are kicking butt and
    winning their dream life.

    Unscripted™ Entrepreneurship:
    A Business That Pays More Than Money, It Pays Time.

    "Fastlane" is an entrepreneur discussion forum based on The Unscripted Entrepreneurial Framework (TUNEF) outlined in the two best-selling books by MJ DeMarco (The Millionaire Fastlane and UNSCRIPTED™). From multimillionaires to digital nomads, the forum features real entrepreneurs creating real businesses.

    Download (Unscripted) Download (Millionaire Fastlane)  Register
    Registering for the forum removes this block!

NOTABLE! You’re not selling wholesale?

Discussion in 'Business Models, Niches, Industries' started by Scot, Jun 6, 2018.

  1. Paul David
    Offline

    Paul David Silver Contributor Read Millionaire Fastlane Speedway Pass

    Messages:
    334
    Likes Received:
    685
    Joined:
    Feb 17, 2015
    Gender:
    Male
    Rep Bank:
    $4,858
    At the moment i have 6000 from last 4 weeks which has cost me around £800.00 in facebook ads.
    I'm running a free competition to win a 4 night holiday using tool called Upviral which encourages customers to share the competition on their social media pages in order to be given extra entrees into the competition therefore more chances of winning. Holiday is going to cost me around £800.00 on top.

    Therefore it's going to cost £3000-4000 for 20,000 leads but long term it will be worth it.

    If you have anymore questions please feel free to PM me. I don't want to take @Scot thread in a different direction!
     
    Kingmaker, Bora.s and njord like this.
  2. jcvlds
    Offline

    jcvlds JC Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    202
    Likes Received:
    218
    Joined:
    Jul 9, 2016
    Gender:
    Male
    Location:
    Mexico > Texas > Florida
    Rep Bank:
    $2,309
    How do you ensure that most people on that list are actually interested in your product and will be likely to buy later on, rather than just giving up their email because they are more interested in winning a free vacation?

    I would give up my email for a free chance to win a 4 day holiday without caring at all about whatever your product is.


    Sent from my iPhone using Tapatalk
     
  3. Paul David
    Offline

    Paul David Silver Contributor Read Millionaire Fastlane Speedway Pass

    Messages:
    334
    Likes Received:
    685
    Joined:
    Feb 17, 2015
    Gender:
    Male
    Rep Bank:
    $4,858
    Very true. However my product is required by someone going on holiday so therefore very relevant. My facebook ads are also targeted to people interested in Travel.
    I am also running facebook ads offering people my product free of charge.
     
    Kingmaker likes this.
  4. Scot
    Online

    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    2,680
    Likes Received:
    12,155
    Joined:
    Jul 10, 2016
    Gender:
    Male
    Location:
    Florida
    Rep Bank:
    $55,752
    Psst @Paul David and @njord as informative as this is, let’s try and keep this thread in topic to wholesaling. Building email lists for amazon won’t help anyone pursuing retail distribution.
     
    AllenCrawley and CareCPA like this.
  5. Paul David
    Offline

    Paul David Silver Contributor Read Millionaire Fastlane Speedway Pass

    Messages:
    334
    Likes Received:
    685
    Joined:
    Feb 17, 2015
    Gender:
    Male
    Rep Bank:
    $4,858
    Agree! And speaking of this does anyone have any experience of selling to hotels?


    Sent from my iPhone using Tapatalk
     
    Scot likes this.
  6. njord
    Offline

    njord Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

    Messages:
    78
    Likes Received:
    104
    Joined:
    Nov 24, 2016
    Gender:
    Male
    Rep Bank:
    $539
    What I would like to know is how do you start whole saling? How do you finance it?

    Im starting with my first brand with amazon FBA, when I get that ball running and know there is demand for my product ill contact stores to sell whole sale to.

    But how do i finance it? will the stores really pay for a product they have to wait 2 months to arrive? (1 month manufacturing + 1 month transport)

    Im just starting off so i dont have the liquidity to pay upfront and in Holland my i have to pay off my credit card at the end of every month so i cant use that unless i want to pay massive rent + iv got a small maxium limet.

    I also have a morgage on my house so i cant just lend extra money from the bank too.

    How do you guys do it?
     
    Scot likes this.
  7. Scot
    Online

    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    2,680
    Likes Received:
    12,155
    Joined:
    Jul 10, 2016
    Gender:
    Male
    Location:
    Florida
    Rep Bank:
    $55,752
    When i figure out this $1billion question.. I’ll let you know haha

    You mentioned you’re in Holland, so that changes my answer. I would say the best instrument for funding is a Line if Credit. In the US, it’s possible to get a Line through the Small Business Association. I have no idea if your government or the EU have any similar programs. See if there are any methods for a government agency to subsidize your business loan/Line of credit.

    No, they won’t. Check back early in my thread, most of your customers will pay on terms. Essentially, they’ll place an order, you send it, and they pay it after a set amount of time, i.e. 15, 30, 45, 60 days.

    You won’t find any stores that are willing to prepay for essentially dropshipping. Especially since you’re a completely unknown brand/risk.

    You will need to have inventory already manufacturered and in your warehouse to ship once you get the order. 1 month lead time is pushing it. The only exceptions to this are if you are a brand new product that the customer knows you have to produce specifically for them. But that will only work for the first order.
     
    Kingmaker and Greg R like this.
  8. Wolfman
    Offline

    Wolfman Bronze Contributor Read Millionaire Fastlane FASTLANE INSIDER

    Messages:
    172
    Likes Received:
    127
    Joined:
    Nov 12, 2017
    Gender:
    Male
    Location:
    Pittsfield, MA
    Rep Bank:
    $525
    Hi Scot, I'm not sure about what your product is but let's say hypothetically I'm selling a unique woman's shoe. I want to wholesale to B/M and LLBean and London Fog and Macys and also get on board w/ Amazon. Do I need to strategize about not trying to sell to competing outfits? Second, since I've never done this, is there an ideal ratio? (I've heard it's best not to put all of your eggs in the Amazon basket.) Thanks for doing this thread man, Greg
     
  9. Wolfman
    Offline

    Wolfman Bronze Contributor Read Millionaire Fastlane FASTLANE INSIDER

    Messages:
    172
    Likes Received:
    127
    Joined:
    Nov 12, 2017
    Gender:
    Male
    Location:
    Pittsfield, MA
    Rep Bank:
    $525
     
  10. Wolfman
    Offline

    Wolfman Bronze Contributor Read Millionaire Fastlane FASTLANE INSIDER

    Messages:
    172
    Likes Received:
    127
    Joined:
    Nov 12, 2017
    Gender:
    Male
    Location:
    Pittsfield, MA
    Rep Bank:
    $525
    Hi Vig, That must be a mystical photo with lots of hidden meaning. (On its surface it's also a nice pic.) Us newbies can always use a bit of inspiration so please share.
     
  11. Wolfman
    Offline

    Wolfman Bronze Contributor Read Millionaire Fastlane FASTLANE INSIDER

    Messages:
    172
    Likes Received:
    127
    Joined:
    Nov 12, 2017
    Gender:
    Male
    Location:
    Pittsfield, MA
    Rep Bank:
    $525
    Hi Cat, So I looked at Anthropologie's online catalogue. Hypothetically let's say I have a better/cooler umbrella than their $32. Could I go in and pitch the owner on selling my umbrella in his store as opposed to the one in their own catalogue? (Good product for Portland. hehehe) Greg
     
  12. Scot
    Online

    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    2,680
    Likes Received:
    12,155
    Joined:
    Jul 10, 2016
    Gender:
    Male
    Location:
    Florida
    Rep Bank:
    $55,752
    I mention very often in this thread what my product is and what market its in.. grocery.

    If you go back and read the thread, you'll see the picture he's referencing in the thread...

    Go back and read the whole thread, because I feel like you're missing a lot of the points here.

    Why would you try pitching to LL Bean or London Fog? They're brands, not stores. They don't wholesale other company's products. Unless you're referring to a private label deal, which this thread is not about, and I cannot provide any guidance on.

    You don't wholesale to Amazon, so no need to pitch them.

    Your ratio will be completely unique to your business. I prefer to have a higher ratio of brick and mortar vs ecommerce because of the logistical costs for shipping direct to consumer for my products. That's a decision you'll have to make yourself but can maybe base it on what other comparable companies are doing.
     
  13. Wolfman
    Offline

    Wolfman Bronze Contributor Read Millionaire Fastlane FASTLANE INSIDER

    Messages:
    172
    Likes Received:
    127
    Joined:
    Nov 12, 2017
    Gender:
    Male
    Location:
    Pittsfield, MA
    Rep Bank:
    $525
    Hi Scot, Thanks a lot for clearing up some stuff that I should have learned the first time through. Sorry for missing your product and other stuff.
    When I go to LLBean online catologue, outdoor accessories (possible fit for my product) more than half the items are not branded by LLBean. So those are private label deals?
    I'm probably missing something again. What is the difference if I went to a brick and mortar LLBean, walked into the outdoor accessories dept. and bumped into their purchaser?
    For example, almost all of the knives they sell are outside brands. What's the channel for the manufacturers to get their product/brand into LLBean's store/catalogue?
    This is important for me because I will want to build my own brand for an exit down the road. Thanks again (and sorry again), Greg
     
  14. Scot
    Online

    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    2,680
    Likes Received:
    12,155
    Joined:
    Jul 10, 2016
    Gender:
    Male
    Location:
    Florida
    Rep Bank:
    $55,752

    I don’t know the specifics for this market.

    I also didn’t know the specifics for grocery before last year.

    I’ve laid it out here in this thread though. Start looking for people on LinkedIn with the title “buyer” or “category manager” then start emailing and calling.

    Have you tried calling LL Bean and asking what the process is for a new vendor submission is? Have you googled that?
     
    Kingmaker, Greg R and jcvlds like this.
  15. MoreVolume
    Offline

    MoreVolume Bronze Contributor Read Millionaire Fastlane Speedway Pass

    Messages:
    196
    Likes Received:
    275
    Joined:
    Oct 6, 2016
    Gender:
    Male
    Location:
    NC
    Rep Bank:
    $1,792
    Just coming back in here to give props to @Scot
    I went to work on creating a new wholesale plan after viewing this thread. New pricing, literature and samples.
    I've reached out to retail stores in Australia and so far im 4/4

    Wholesale purchases change the game for sure. 1 wholesale transaction can eclipse a whole week of internet sales
     
  16. amp0193
    Offline

    amp0193 Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    2,457
    Likes Received:
    10,650
    Joined:
    May 27, 2013
    Location:
    United States
    Rep Bank:
    $47,754
    AND it's recurring revenue.
     
    handog, Scot and MoreVolume like this.
  17. Scot
    Online

    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    2,680
    Likes Received:
    12,155
    Joined:
    Jul 10, 2016
    Gender:
    Male
    Location:
    Florida
    Rep Bank:
    $55,752
    Im going to give them a few months, but @AllenCrawley has a new wholesale strategy and killer sales manager. He also has a large catalogue of products to sell too.

    After you catch your stride, would you mind posting an overview of what’s working thr brand?
     
    Valor and AllenCrawley like this.
  18. Scot
    Online

    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    2,680
    Likes Received:
    12,155
    Joined:
    Jul 10, 2016
    Gender:
    Male
    Location:
    Florida
    Rep Bank:
    $55,752
    Exactly!

    My first wholesale order was bigger than all the online sales I did up to that point.

    Great work implementing this. Rep+
     
    DeepScripted and MoreVolume like this.
  19. AllenCrawley
    Offline

    AllenCrawley Legendary Contributor Staff Member Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    3,861
    Likes Received:
    15,592
    Joined:
    Oct 13, 2011
    Gender:
    Male
    Location:
    Scottsdale, AZ
    Rep Bank:
    $72,686
    For sure. I will be posting a new progress thread on the Inside soon.
     
  20. Azure
    Offline

    Azure Perpetual Motion Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    369
    Likes Received:
    676
    Joined:
    Mar 12, 2016
    Gender:
    Male
    Rep Bank:
    $3,797
    I do, in the food/janitorial category.

    In my experience it has been more hassle than it's worth due to things like credit terms, incredibly low margins and an absolute difficulty getting paid in general - but I'd be happy to answer any questions you have.
     
    Kingmaker, amp0193 and Scot like this.
  21. yungmillionaire
    Offline

    yungmillionaire New Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

    Messages:
    5
    Likes Received:
    2
    Joined:
    Dec 3, 2018
    Gender:
    Male
    Rep Bank:
    $11
    Hi everyone,

    I am a bit confused. Do you guys brand your own products and wholesale it to stores? Or are you wholesaling existing brands to stores?
     
  22. Scot
    Online

    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    2,680
    Likes Received:
    12,155
    Joined:
    Jul 10, 2016
    Gender:
    Male
    Location:
    Florida
    Rep Bank:
    $55,752
    Everyone in this thread, with the exception of @MidwestLandlord , sell their own products to stores. Midwest was a distributor. The rest of us are vendors.
     
    yungmillionaire likes this.
  23. JonnyC
    Offline

    JonnyC Silver Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass Summit Attendee

    Messages:
    173
    Likes Received:
    777
    Joined:
    Jan 23, 2014
    Gender:
    Male
    Location:
    QC, Canada
    Rep Bank:
    $6,708
    This is a really late reply but I figured late is better than never...

    We were approached by a very large retailer recently and had to solve this problem ourselves. We aren't using this solution yet, but I did learn about it. It seems the solution is what's known as invoice factoring. You need decent margins to make it work, but here's an outline:
    1. You receive a purchase order from a retailer for $5,000;
    2. You send them an invoice for $5,000 with net 30 (or 60, or 90...);
    3. You "sell" the invoice to a factoring company which will charge you a % interest rate per month you need the factoring;
    4. The factoring company pays you ~80% of the invoice value right away, so you get a transfer for $4,000 within a few business days of issuing the invoice;
    5. You receive the remaining 20%, less the fees, after the retailer has paid the invoice to the factoring company, say like $500 assuming you paid a total of 10% in fees.
    Benefits: Cash right away, not in 3 months. Allows you to get on top of your inventory and not miss any sales. This solves probably one of the largest operational issues for growing a wholesale distribution channel, which is funding the growth itself.

    Downsides: The fees can add up for long payment terms. Large retailers expect 60 to 90 days usually, so that could cost like 10 or 15% of your revenue (assuming a 3 to 5% per month fee), which is why it's important you have good margins.
     
    amp0193 likes this.
  24. Scot
    Online

    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    2,680
    Likes Received:
    12,155
    Joined:
    Jul 10, 2016
    Gender:
    Male
    Location:
    Florida
    Rep Bank:
    $55,752
    One thing to also be very wary of...

    Invoice factoring/purchase order financing firms can sometimes be very collections agency like. If they don't get their payment from your client within 30 days, they'll start calling. This is a very quick way to piss off your new account.

    Make sure you find out what their policy is for late payment. I'd rather let it go past due and pay fees than let Walmart know you're using a factoring firm that's going to badger them daily for remittance.
     
    JonnyC likes this.
  25. jcvlds
    Offline

    jcvlds JC Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    202
    Likes Received:
    218
    Joined:
    Jul 9, 2016
    Gender:
    Male
    Location:
    Mexico > Texas > Florida
    Rep Bank:
    $2,309
    Great point. Have to balance the act of not annoying your key client accounts, with keeping a sharp eye on your monthly cashflows.. cash reserves can help cushion when your customers pay late but you still need to pay your vendors. A business could be profitable on the P&L yet crumble because they ran out of cash by not keeping a tight eye on Receivables


    Sent from my iPhone using Tapatalk
     
    Scot likes this.

Join 1000s of entrepreneurs who are rewriting life's script and winning financial freedom.

---- ----

You must be a member to join the conversation.

Create Account

Join the community fast and easy!

REGISTER

Log In

Already have an account? Login here.

LOG IN

Share This Page