I am interested in taking my business wholesale to stores. Is it possible when pitching to larger stores to ask for a percentage of the order upfront and the remainder 30 days after delivery? I am thinking about getting a rep. Is this something they would be willing to ask on my behalf? Help! I really want to take my business to the next level outside of online sales.
I am thrilled that you are going to expand into wholesale sales. This is a great way to increase your revenue and get more brand recognition. Very exciting!
In my experience, stores are not willing to pay anything up front. That is not to say they won’t, it’s just not “regular” business practice. I’d suggest building a solid foundation with smaller stores and get very comfortable with your cash flow before venturing out to the big guys. Having a solid relationship with hundreds of small stores is a very stable and secure way to build a brand. You have a lot more access to the buyers, and they tend to be more loyal than the big guys that are driven by weekly sales requirements.
I am a big fan of sales reps, so I say go for it. Again, they will most likely refuse to ask for a deposit from their accounts so again, just let them know that you prefer to build a foundation of small stores before stepping into the big ‘ol deep sea.
I built my $1M handbag line with the help of about 1200 boutiques under my belt before I ventured out to dep’t stores and larger chains. You can do it too!