The 5 Mistakes I Made In My Wholesale Business
Since starting my business back in 2009, I have made my share of mistakes along the way. Today, I want to share five of those mistakes with you, so you can avoid them in your own wholesale journey. These experiences taught me valuable lessons that helped shape the growth and success of my business. Read on to discover the mistakes I made and the insights gained from them:
- A Once a Year New Product Release
One of the biggest mistakes I made in my wholesale business was only releasing new products once a year. In 2011, I began participating in a tradeshow called the National Stationery Show which happened annually in May. That was my Super Bowl. For years, I put all of my eggs in one basket and released product just once a year specifically for that show. I soon realized that this approach limited my revenue potential and was causing me to miss out on valuable opportunities. Now I release products 3-4 times a year at peak buying seasons which helps to keep my product line fresh, keeps retailers excited about my brand, and as a result, maximizes sales.
- Not Enough Inventory
Another costly mistake I made was not having enough inventory on hand. I used to print my greeting cards only as orders came in. This reactive approach made my turnaround time very long. It took me around 2 weeks to get a wholesale order out the door as I didn't keep a steady supply on hand. I was so worried about having an oversupply of inventory that didn't sell so I took it to the extreme and printed orders on demand. As wholesale orders started coming in more consistently, I realized that it was important to have products that were ready to pull off of the shelves in order to fulfill orders promptly and efficiently. By forecasting demand, I was able to ensure a steady flow of products and minimize shipping delays. This greatly reduced my shipping turnaround time so retailers were able to get their orders faster leading to happy customers and more frequently placed reorders.
- Not Using a Business Credit Card
In the beginning, I used a debit card for all of my business expenses. While this ensured I didn't overspend, I missed out on earning valuable rewards points and benefits that a credit card can provide. I have since transitioned to using a credit card for most of my business expenses. By switching to a credit card that earns travel points, I accumulated rewards that I could use to offset cost for my business travel, such as tradeshows, which can be a significant cost of participating in a tradeshow.
- Not Hiring Earlier
In the early days, I mistakenly believed that I had to handle every single aspect of my wholesale business myself. I juggled roles as a photographer, printer, product designer, packaging specialist, marketer, visionary, order fulfillment, web designer, graphic designer, and customer service department, just to name a few. This approach quickly became overwhelming. I had the mindset that no one could do these tasks as well as I could and hiring help seemed too expensive. However, as my business grew, I reached a breaking point where I couldn't handle the workload alone anymore. I finally decided to hire my first employee to help me with packaging products. To my surprise, they performed just as well, if not better, than me. I soon found myself wondering what else I could get off of my plate. Today, I have an incredible team that supports me and allows my business to grow in ways I never thought possible. I now recognize that relying on others frees up my time to focus on the aspects of my business that I excel at and enjoy most.
- No Retailer Follow Up
In the early stages of my wholesale business, I never followed up with retailers after they placed orders for their shops. I naively assumed that my products would speak for themselves and that retailers would reach out to me for future orders when they were ready. By not following up with my customers, I had so many missed opportunities and failed to build strong relationships with my retail partners. I quickly learned the importance of nurturing your retailers and providing them with updates on new products and promotions. By taking this proactive approach, I am better able to develop long-term partnerships and secure repeat orders.
Reflecting on the early stages of my wholesale business, I learned so many valuable lessons along the way. It is my hope that you will learn from my own mistakes so you can position your wholesale business for sustainable growth and success.
