Distributors and wholesale cash-and-carry businesses are essential in getting goods to formal and informal sectors in South Africa. This is especially true in key economic areas like JHB, Durban, Cape Town, and Gqerbeha (Port Elizabeth). In general, this is an industry that pursues high profits and continuously maintains efforts to grab new business. So what do wholesalers need to keep in mind when running this kind of business in South Africa?
Knowing what your competitors are doing well and how to use market research to advance your enterprise is essential to remaining competitive. If you want to succeed, you must undertake a thorough analysis of your rivals. Examine their selection of products and how they stack up against yours in terms of their capacity to carry out the required task. You also really need to understand their quality, price points, and ease of purchase and delivery. After that, you can investigate the kinds of customers they appear to draw and how they are approaching their potential customers through their different marketing efforts. Once you understand this, you will be able to make smart decisions about your own business going forward.
Equipment and property
It is important that you have the right infrastructure when setting up a strong wholesale operation. To maintain effective communication, you would typically need office supplies and some basic warehouse supplies, such as a laptop and cellular contracts. Software for management is also necessary to monitor inventory and other processes. Also, ensure you have strong inventory control where you can easily count your stock and have a firm grasp of your stock levels.
You must make also the right property choice if you want to successfully manage your business. You might need a boardroom and office space if you plan to meet with clients. It's crucial to take your potential future growth into account when choosing a warehouse location. You might consider a tiny storage unit if you want to start out small. As an alternative, if you have the money, you may buy or rent one.
Marketing and promotions
If you already have customers, referrals may help you gain more clients. Every company needs to be present on social media, and these pages need to regularly post new content. Consider print media if it's appropriate to your industry, and make sure you have a thorough marketing plan laid out. To market yourself and your business, you can also consider events for business networking which is a great way to win new clients, expand your operation and meet new suppliers.
Any successful wholesale and distribution business needs help moving large shipments. Make sure you have a strong team around you, including a warehouse manager, truck driver, accounting firm and staff to work the floor. You should also ensure that you set up strong procedures and insurance, including medical assistance, vehicle allowances, and UIF contributions.
The bottom line
There are many important things that wholesale and distribution businesses need to take into consideration. As crucial operators in the sector, your operation needs to be streamlined, well maintained and tightly managed. To invest in your growing wholesale and distribution business in the next 48 hours, contact Merchant Capital today.