I CY.com

[iSign]

it's not silly... and it's not mandatory... but trade-ONLY certainly has it's place... it's not as simple as just not caring what they do after your job is done, as long as they take care of you...

it's about you investing time and energy to sell jobs that (in some cases) you, yourself, can not produce... but you spend the time, building a reputation & a market for those products, because perhaps your area is under served in this capacity...

...but then if you suddenly find out your past clients, or potential future clients are buying direct from your supplier... well, if they are getting the product cheaper than you sold it, that would suck.. but even if the (formally) wholesaler raises his price in line with yours... it still kinda sucks that you have been advertising and developing a niche, and directing the bulk of the funds over to your loyal wholesales... and then find out he is competing with you for retail work, as well...

 

[National Sign Co. - Print]

'High Margin' is a synonym for 'Retail'

We turn it down. Because it's not high margin. There isn't such a thing as high margin work. There's paying the right guy[reputation] to get the job done right, or there's taking a risk with the hungry guy.

To answer your question "why" it's a matter of loyalty and making sure our customers know they are our first priority. We don't do grand format, we're a screen printer. But all things the same, if a wholesale client had a choice between trade-only and someone with a retail side, 11 times out of 10 they would choose the trade only supplier.

**On a side note we have worked with Merritt & Signs365 back when we were a retail sign shop. They BOTH did a stand up job. Merritt was cheaper and took longer on the small orders we placed.

So you mean to tell me If a major company called you direct with huge annual projects and you have never seen work from them(the major company) from any of your trade partners and they are willing to pay 5 times more to deal direct you would turn it away?? Honestly, would you turn it away??

I am talking retail clients that your trade client base does not or will not work with.

If you have capacity to handle both markets and revenue streams it is a win win for all..

If I sell banner for $1.75 s/f to "Johnny's Sign and Graphics" and $7.00 s/f to Verizon. Who is it hurting?

I also 100% guarantee our retail side of things is priced significantly higher than every single partner on our wholesale end. We have even gone as far as referred retail accounts to our wholesale partners. So our partners get the client and we still get the production.

Smart economics for a growing shop is to have balance of both markets. It allows a company to grow and Invest in Technology, People and Produce quality products faster and better.

If you do wholesale and sell retail for the same price that is shady and not respecting the markets. Also if you see a client calls direct and you know it is an account of one of your wholesale partners. Do the right thing... Retail accounts come and go.

Wholesale partners are generally very loyal and we have many major players with heavy hitting clients that is always priority 1 to keep happy and profitable for all..

We can argue the whole trade only BS all day long. No matter what your view is as long as you run an honest business with integrity, ethics, hardwork, quality and service you will be successful.

If you are looking to screw the next guy then eventually you will get yours and someone wholesale or retail will be printing you a "Going out of Business" sign and banner.

Like me and my opinions or not, Like our business model or not. I share my industry experience and factual situations to all... Good, Bad and sometimes Ugly..

 

[National Sign Co. - Print]

until he gets the last word.......like someone else I know
jk

Oh yeah almost forgot...

LAST WORD!!!

 

[FireSprint.com]

So you mean to tell me If a major company called you direct with huge annual projects and you have never seen work from them(the major company) from any of your trade partners and they are willing to pay 5 times more to deal direct you would turn it away?? Honestly, would you turn it away??

Yes. We have and will continue to.

 

[National Sign Co. - Print]

Yes. We have and will continue to.

Sorry for you... " I will give you $100 for the $20 in your pocket" you then say no...

for real??

We are in biz to make $$$.. To not take the dime in front of your face is Just stupid.. Many pennies and nickles do the same everyday.

They just have a different bank!!

 

[ProWraps]

where did the banner ad go?

 

[ddarlak]

where did the banner ad go?

we scared them away

 

[ProWraps]

all that for nothing!?!??!?!?!? hahahahahahahah best ad campagin EVAR!!!!

 

[HulkSmash]

where did the banner ad go?

Africa.

 

[FireSprint.com]

I know Merritt isn't in the business to make a quick buck. We're not either. We have made a commitment to our customer to be trade only.

If we get a large (or small) retail customer that happens to find us, we refer them to the nearest signshop that has recently done business with us. We have referred away Universities, Union Pacific, Insurance Companies, Monsanto subsidiaries and more.

To be frank, we just don't need that kind of business. We're adding a new line this week and focusing on how to service the customers we already have. We have grown so fast we actually have throttled where we advertise. I believe a big reason for our growth is our intense commitment to trade only.

 

[Just Another Sign Guy]

I'm not going to comment on the Original Topic but regarding this wholesale versus retail I'd just like to point out that there are MANY very reputable companies that offer both, I don't know where it is written that you can not offer both?

The problem for me is when companies are not upfront about it or worse those rare instances where companies offer both and then take the initiative to try to convert wholesale job information into retail accounts...obviously this is beyond unethical and because it has happened I can understand some people's apprehension, but it doesn't mean that EVERY company that offers both wholesale and retail is doing the same thing.

This model can be very advantageous to a growing business.

-It can minimize the slow times a company may face on the retail side.
-It can increase your purchasing power because you are using larger qntys of material.
-It can allow you to purchase equipment that you otherwise might not be able to afford.

and many businesses in their various growing phases encounter a period that is very difficult in regards to employee time management. Overtime becomes large enough that it is a concern but not enough to quite justify a second production shift, using the model above you can very rapidly rectify that situation by the influx of work from the wholesale side.

anyone who has been in this industry for any length of time understands or has encountered the various problems with building an outside sales force..it isn't always a successful situation lol. Offering wholesale is a way to increase the volume of work that is flowing through your shop, the challenges are that your shop needs to be setup so that you can produce that increase in work in a profitable, high quality manner. If you deliver a high quality product at a competitive price wholesale can be a profitable endeavour, I have seen many companies lose money because they have tried to compete on a wholesale level with entry level (or near entry level equipment), they don't have the buying power, they can't produce the product in a timely manner or they can't deliver the level of quality those in the trade demand..sign people can be MUCH pickier than a retail client, as I say "no one is going to smell the signs".

Every business has different goals and growth plans, I am not saying this is a formula that will work for every business nor is it one every business should consider. However, I don't understand the argument of 'trade only' if both are producing quality products, at competitive prices and you are in fact dealing with companies that will not 'jump the fence' and chase your accounts...and don't think for a MOMENT that there are not companies that promote themselves as "trade only" who do not then chase down leads from the wholesale work they receive and funnel that work into a subsidiary.

There is enough work out there for everyone you just have to go out there and get it.