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The Advantages Of Owning Wholesale And Retail

Aug 17, 2007
Having both a wholesale and retail outlet in one location proves to be advantageous when it comes to increasing the profit margin. This article will show you how the two can go hand in hand.

You can distribute products on the wholesale side to your retail outlets or other retail outlets. Off the bat this gives you two avenues to generate business. This not only earns you money, it also supports the economy in your area considering that a good market for a small business is another small business. A restaurant is only as good as the food it serves. In order to provide a customer with a quality dining experience it may take three or four wholesale operations. Every wholesale opeation plays their role in the success of any restaurant.

Many restaurants branch out and sell their products in retail outlets. This has more to do with the brand name than with keeping the whole production and retail outlet in the same location. However they are under the same hood in terms of the brand name. Even fast food companies have been known to lend their name to products that are supposed to have the same flavor as the fast food experience.

Wholesale deliveries are usually done in the early morning while the consumer is sound asleep. Most often they are done by truck, boat, trains, or airplanes.

There are a few business owners who have a retail and wholesale business in the same location. This is usually referred to as a front and back end. The front is the retail side and the back is the wholesale side. This is very advantageous because you get products at a lower price. There is no calling in orders, paying a cost for fuel, and waiting for deliveries is not of concern. If you run out you merely have to go to the back or make more.

In many instances companies make most of their money from the wholesale operation. However the retail end of the business is a good way to build customer relations and a business name.

Examples of combining wholesale and retail together for big profits include bakeries with delis in the front, breweries with restaurants and bars in the front, coffee shop chains that make their wholesale coffee, and shopping centers or super markets that manufacture goods.

Combining the front end with the back end of your business will place you ahead of the competition. Whether you are doing it from the same location or not, it's the same concept and it will save you money that you can pass on to the customer.
About the Author
David Gass is President of Business Credit Services, Inc. His company publishes a free weekly e-newsletter on Small Business Consulting at their web site http://www.smallbusinessconsulting.com.
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