Wholesale Taboo - Does it really exist?

[Color Spot North]

Just in this community alone there are companies that offer both retail and wholesale under one roof, then there are those that do ONLY one or the other (as the bulk of their business).

Got Print for example, sells to anyone, and gives a little nod to brokers, but essentially sells the same price to anyone. To me that is a little distasteful.

Take someone like Signs365 who sells only wholesale, would get shunned if it turned around and sold to the public at those prices (at least I think they would get shunned). However, if they sold to the public at market value and still offered wholesale, nobody should reasonably care, right?

Take another big guy like Merritt Graphics, whom sells quite successfully to both retail and other sign companies, doesn't seem to bother anyone.

Is the idea that a print provider markets themselves as "Trade Only" really that special to anyone? Is there really an inherent danger in doing business with a Merritt Graphics whom "could" go after a wholesales client, but probably wont.

In this day and age with internet, online reviews and the ease to spread the word, does anyone really think one is better than the other, so long as the product is good, price is good and turnaround is good?

These are ideas a recent business owner group tossed around the round table a few days ago, and what better place to continue that conversation than a sign forum.

Has anyone else thought about this, talked about this?

 

[Fred Weiss]

My company has been both wholesale and retail since 1984. Unlike some who look at wholesale as giving a discount, I have always set my wholesale as at least the minimum I could get and meet my profitability goals and then marked up to retail while testing whether or not the market would accept the retail price of any item. The difference in the approach may seem unimportant but I have always seen it that way. It guarantees my profitability and also proves that a wholesale customer has enough room to mark up a reasonable amount.

One concern I would have with a dedicated wholesaler is whether or not they retained a pride in workmanship or if they had devolved to viewing their work as products and commodities. The concern with a supplier who also retails would be one of trustworthiness if in my local market.

All things being equal, I would choose a trustworthy wholesaler-retailer as my supplier for outsourced services.

 

[player]

Fred you are banned for double dipping.

 

[visual800]

The largest advantage we have as sign guys is that we can design what the customer needs. If someone Im dealing with wants to order their own prints, go for it. It will not bother me any. If they wanna start ordering their own flex faces, banners, go for it. More of my money is made on install than resell of these printable items. BUT if I am to install or use a cusomters materials they ordered there is NO warranty. If they have an issue not my problem.

On the flip side, Gemini selling to contractors and architects pi$$es me off. These folks are NOT sign professionals and that is really cutting into my profit on the signage like this. My markup on architectural is quite high. I would like Gemini to step up and cut this crap out but I doubt they will

 

[binki]

We prefer using wholesale to the trade only vendors unless they are not near us or if they offer something we don't. In those cases we can often do a markup that gives us profitability without competing in the same pool.