3 Master Sales Techniques For Your Wholesale Business
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Chances are if you find yourself reading this article, you’ve already decided that a wholesale B2B business model is either the next path for you, or something that you’ve already begun the process of pursuing.
And there’s never been a better time, wholesale e-commerce has an array of opportunities for people looking to:
- Expand their brand awareness and reach
- Acquire new customers
- Enter additional markets
And all that is to say, you can accomplish the above with a lot less effort that comes with mass-marketing, targeting, and the one-off customer support that B2C entails. By implementing just a few powerful techniques, you can master the art of wholesale B2B sales.
Here’s how some of our most successful wholesalers do it
1. Find your 80-20
Also known as The Pareto Principle, the 80-20 rule asserts that 80% of all outcomes (or outputs) result from 20% of all causes (or inputs) for any given event. In business, the main goal of implementing the 80-20 rule is to identify which inputs are potentially the most results and make them the priority.
So how does that relate to wholesale business?....As your business grows, you will notice and with data (*conveniently broken down in the B2BWave customer reports* link) that for example, the majority of your revenue may be coming from a small subset of your clients (80-20 is an arbitrary number, but the principal applies all the same) Instead of investing equal time and effort in all customers equally, you can apply specific tactics to grow, nurture, and invest in the 20% that is driving 80% of your results. Let’s dive into this example:
Say you have 2 loyal customers whose monthly minimum spend makes up 65% of your total revenue, great, you’ve found your 80-20. Now it’s time to double down.
Take action like:
- Build a more personal relationships with those 2 customers
- Ensure they are always serviced fast, and at their convenience.
- Bring in new products for them that will increase their average order value
The above are just a few small ways to implement the 80-20 rule.
2. Bulk or Bust
Setting minimums is common practice in B2B ecommerce. But did you know that you don’t have to limit yourself to just minimum quantities? Minimum spend is another way to ensure you maximize your return.
Figuring out costs —and I mean everything involved in your product is the first step in setting yourself up for success;
- Quantify all of the time involved in the creation of your product - direct and indirect.
- Calculate your material costs
- Include any overhead - rent, utilities, insurance
- Don’t forget about any marketing costs or other variable costs - tangible or not for acquiring a client
Once you’ve crunched the numbers and broken it down into cost per unit, and decided on an acceptable profit margin, you can set either your minimum order quantity or minimum order spend. Selling products in bulk quantities is great because it ensures large order volume, with less hassle of trying to sell small quantities to individuals.
This step is pretty much not negotiable when it comes to wholesale e-commerce mastery.
3. Back to Basics: Relationship Building 101
There are really two important aspects of building a relationship with your wholesale customers. Retention and Experience; the first will ensure that you are cultivating a longstanding positive interaction with your customer so that they will renew and keep buying from you, in turn keeping your wholesale business alive. The latter will give them something to remember — if someone has a great experience they’re more likely to share it, remember it, and be loyal to it.
Unlike B2C one-time payments, and small orders—B2B wholesale success relies heavily on long-term contracts, licenses and subscriptions. When those are lost or customer churns? A significant portion of your revenue vanishes.
In wholesale business, the customer is the single most important aspect of the system. Forbes research has revealed that B2B customers take much longer to make a purchasing decision than B2C, because they expect that the partnership will be a longstanding engagement. Prepare to take multiple calls, reduce anxiety, and reassure a client who has questions or concerns. Keeping customers up-to-date, informed, and armed with the latest in your B2B business will ensure they have everything they need to continue a fruitful relationship for a long time.
Mastering B2B sales comes down to more than just carrying the product that your customer wants. It’s about anticipating their needs, being readily available to provide expertise, getting them the products they need —fast.
The relationship should be ever-evolving and you should always be looking for new ways to cultivate the relationship with your customers. Some quick ways to wow your newest customer with an awesome experience?
- Take the time to learn about their business — do the work to understand their message, and vision and create a custom plan for how your partnership will get them to their goals.
- Create awesome content for the products that they can reuse. Chances are if your customer is running a B2C storefront, they’re not going to have a ton of extra time to create descriptions or brochures. Stand out from other wholesalers and get them something they can take to market ASAP.
- Go the extra mile — send them samples, host a product demo or expert panel webinar...create something different that delivers value, wows them, and gives them something they won’t easily forget.
Start Mastering your B2B Wholesale sales today
B2B e-commerce sales tactics are not the same as B2C. In many ways B2B requires a much more personal, hands-on approach.
However, if you master the basics of these sales techniques, you’ll be well on your way to identifying the key drivers of your business, and establishing meaningful relationships with your customers that will deliver a great customer experience with mutual success.