3 Reasons Why Wholesale Business Fail - PowerPoint PPT Presentation

Title: 3 Reasons Why Wholesale Business Fail


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13 REASONS WHY (WHOLESALE) SMALL BUSINESS FAIL
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BUSINESS IS TOUGH AS SHIT
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There are often 10 times more reasons why a
business should fail than why it should survive
and thrive
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From my experience running a custom t-shirt
printing business, these are the 13 most common
reasons why a wholesale and distribution business
fails
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REASONS WHY WHOLESALE BUSINESSES FAIL
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1
Playing in an Extremely Red Ocean Bad Margin
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In this hyper-competitive business landscape, I
can tell you that prices will win most of the time
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2
Not Keeping an Eye on Extended Credit
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Another huge killer of a wholesale business is
giving too much and too long credit terms just to
secure a deal or to retain an old customer
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3
Missing Out on Billing Customers or Over Paying
Suppliers
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It may sound unbelievable, but it is more common
than you think. Procrastination and
disorganization can all lead to this
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If youre using the EMERGE Cart features,
customers can indent your products they want
directly from the app into your system. Hence,
theres no way that you will miss an invoice or
shipment
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4
Too Much Dead Stock
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The stock is literally money
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5
Hiring Ineffective Sales Reps
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They sell themselves backward during the
interview but afterward, they cant sell your
products to your customers
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6
Best Sales Reps Moving to a Competitor Bringing
Customers Over
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This can be detrimental to your business as great
reps could be servicing the majority of your
clients
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7
Employee Leaving Starting a Competing Business
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Similar to reps moving to a competitor, great
reps starting a competing business may quickly
put you out of business
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8
Sudden Fluctuation In Currency Exchange Rate
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If youre extending credit terms in a fixed
currency, a sudden negative fluctuation in
exchange rates corresponding to your purchase
currency could erode your margins or even leave
you belly up
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9
Too High Product Loan Interest Rate
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If youre financing your inventory with credits,
you have to make sure you keep your eye on cash
flow, sales and margins really, really closely
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10
Supplier Product Drops In Quality
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Have you realized recently that your customers
are complaining about your products quality or
returns are increasing?
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11
Supplier Not Extending Credit
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Its really difficult to get suppliers to extend
you credit when you have just started buying
stocks from them
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12
Skyrocketing Shipping Cost
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In recent years, shipping costs have been pretty
modest with low fuel prices
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13
Inventory Lost Without Insurance Coverage
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A breakout fire could wipe everything that you
have worked so hard for
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BUSINESS IS TOUGH AND THERES NO MAGIC PILL
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You can certainly make use of technology to lower
the risk of catastrophic failures such as
investing in a wholesale order, purchase, and
inventory management system
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Emergeapp.net/sales/why-wholesale-business-fail/