What can be the competitive edge in a wholesale business?

Wholesale

Wholesalers have a rather limited set of customers, and when they lose one of these customers, it is quite hard to regain, because wholesale buyers do not change their suppliers as often as the individual customers. Therefore, as a wholesale business, you have got to have some competitive advantage right from the onset, to be able to win as many customers as you can. Gaining a competitive advantage is not difficult if you know your customers and their requirements.

Price:
When you are dealing with commercial users, there's no competitive edge more compelling than the low wholesale prices. If you are starting as a wholesaler in an already saturated market, you have got to start with offering somewhat lower prices than your counterparts. You can do this by going for lower profit margins, or even better, by finding a cheaper source or supplier for your targeted products. Retailers will need no second invitation when they see a supplier offering low prices and high profit margins.

Lead-time:
Having a better lead-time than your competitors can be a huge competitive advantage. There is always some delay between the time when you receive an order and the time when you deliver the products to your customers. Distributors can not eliminate the lead-time, but they can surely reduce it. Besides, you've got to provide your buyers with an accurate estimation of the lead-time so that they can adjust their replenishment process accordingly. Inaccurate information of lead-time will result in some inventory related problem for your customers and they will just move on to another supplier.

Payment Terms:
If you are not able to offer lower prices, you can still have an edge over your competitors by providing better payment terms. For example, wholesalers can offer perks on big orders or discounts when the customers make the payments in a given time period.

Value added Services:
There's so much you can provide to your customers, other than the actual products. For example, you can provide them with training or information about the products that will help them provide better customer service, or you can keep them updated about the possibility of up coming trends or demands.

Packaging:
Branded products come with their own packaging, but when you are providing non-branded products, you can always come up with better packaging. Talking of the retailers, you can also provide support and ideas to the retailers to help them improve their display.