Post on 21-Jan-2018
13 REASONS WHY (WHOLESALE) SMALL BUSINESS FAIL
BUSINESS IS TOUGH AS SHIT
There are often 10 times more reasons why a business should fail than why it
should survive and thrive
From my experience running a custom t-shirt printing business, these are the 13 mostcommon reasons why a wholesale and
distribution business fails
REASONS WHY WHOLESALE
BUSINESSES FAIL
Playing in an Extremely Red Ocean – Bad Margin1
In this hyper-competitive business landscape, I can tell you that prices
will win most of the time
Not Keeping an Eye on Extended Credit2
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
Missing Out on Billing Customers or Over Paying Suppliers3
It may sound unbelievable, but it is more common than you think.
Procrastination and disorganization can all lead to this
If you’re using the EMERGE Cart features, customers can indent your products they want
directly from the app into your system.Hence, there’s no way that you will miss an
invoice or shipment
Too Much Dead Stock4
The stock is literally money
Hiring Ineffective Sales Reps5
They sell themselves backward during the interview but afterward, they can’t
sell your products to your customers
Best Sales Reps Moving to a Competitor & Bringing Customers Over6
This can be detrimental to your business as great reps could be
servicing the majority of your clients
Employee Leaving & Starting a Competing Business7
Similar to reps moving to a competitor, great reps starting a
competing business may quickly put you out of business
Sudden Fluctuation In Currency Exchange Rate8
If you’re 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
Too High Product Loan Interest Rate9
If you’re financing your inventory with credits, you have to make sure you keep your eye on cash flow, sales and margins
really, really closely
Supplier Product Drops In Quality10
Have you realized recently that your customers are complaining about
your product’s quality or returns are increasing?
Supplier Not Extending Credit11
It’s really difficult to get suppliers to extend you credit when you have just
started buying stocks from them
Skyrocketing Shipping Cost12
In recent years, shipping costs have been pretty modest with low fuel prices
Inventory Lost Without Insurance Coverage13
A breakout fire could wipe everything that you have worked so hard for
BUSINESS IS TOUGH AND THERE’S NO
MAGIC PILL
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
Emergeapp.net/sales/why-wholesale-business-fail/