Good Customer Relationship Management with Wholesale Buyers

In order to maintain long lasting wholesale customer relationships, provide retailers with the best possible customer experience (CX). Here are some tips for starting and good customer relationship management.

1. Create B2B customer profiles. Just as you would for consumers, conduct (primary &/ secondary) research to know your B2B customers, especially as this knowledge relates to their purchase motivation factors, including pain points and other secondary needs. See customer personality types. 
2. Manage brand perceived value and avoid over-saturation within any single market, especially small markets. Consider selling to only those wholesale customers whose stores represent your brand. For instance, if you sell to upscale boutique stores to appeal to their up-market target customers, do not try to maximize sales by selling to supermarkets, especially lower-end ones. After all, retail outlets used for selling products signal the image and value of those products. Going against an expected standard can rub some customers and consumers the wrong way. Furthermore, even when numerous options exist for ideal wholesale customers (because they fit your target customer profile), resist the temptation to sell to all of them if doing so will prevent over-saturation in the market. In other words, analyze and shortlist your options to only those customers whose relationships are most beneficial. This applies most significantly when product margins are narrow. Also see notes on preventing price wars. You can also consider offering a sense of exclusivity with product liability insurance coverage for only compliant / authorized retailers (who you can add as 'additional insureds' in the event of liability claims). 
3. Set prices with a reasonable profit margin for retailers in mind. As mentioned in an earlier article regarding how to price when selling wholesale (and retail), if possible, find out their expected retail margin before your sales presentation. Just like location (as discussed above), the price signals the value of the product. If your product targets the high-end segment or can be considered 'premium', you can hurt your business in one way or other by under-pricing through insecurity of being able to sell. For instance, the retailer may raise his price and gain the profits you should, both of you will miss the opportunity for higher revenue or a quality-sensitive market will not buy as a low price may make them question its quality. Sometimes, it is wiser to start with higher prices as you can reduce them if necessary. You can not easily do the reverse. To establish this price more appropriately, use competition and reservation pricing methods (ie considering the highest tolerable price your market can bear) in conjunction with the cost method (that only considers covering your production costs).
4. Protect the profit potential of your wholesale buyers. Avoid detrimental forms of competition with and among your wholesale buyers. For instance, prevent price wars among retailers and with you by having a Minimum Advertised Pricing (MAP) policy for all authorized retailers of your product. Needless to say, you should also comply with this policy so as to never undercut those who retail your product. The earlier point regarding brand image and avoiding over-saturation also work towards this end.
5. Make the relationship as easy and flexible as possible. For instance, allow low minimum order quantities (MOQs) for new products and or markets. Retailers appreciate this very much as they need to monitor sales before committing to product they can not sell. Offer options for slow-moving products like product swaps (with you) or appropriate product bundling (with other brands in their store). Options like these for slow-moving products are particularly useful when products have a limited shelf life. It would not hurt to know your customer's fastest moving items and best sellers as bundling with those products may be useful for pushing your products if possible. One noteworthy consideration however is that custom products generally have a higher MOQ.
6. Demonstrate that you are a good match for your customer's brand. Do this with suitable products, all-important packaging and signals that, regardless of the size of your business, you have the wherewithal to maintain a reliable business operation. For instance, have appropriate policies that cover the points discussed here. More importantly however, before chasing after big retailers like chain stores, consider perfecting your business model with a few small one-man boutique companies. Your ability to generate sales and overall good performance track record will help in demonstrating your business acumen. Packaging helps to drive sales in retail and should not be handled lightly. For clues on what consumers like, consider the packaging of successful competitive brands. They continue to exist as testimony of what has been tested and ultimately approved by your target market.
1. Regarding packaging, case study the locations of your target wholesale buyers to see the packaging colors they use in the spaces you wish to have your product sold. Retailers often place competing brands with contrasting colors next to each other. If your product quality is in order, consider using colors that compete with a market leader. (See discussion about this at 14:32 in the video below)
7. Promote your best wholesale buying customers. This provides a great win-win situation as it is not only free advertising for your customer but also provides content and social proof for your blog or vlog.
8. It is cheaper and easier to keep pre-existing customers than to get new ones. So keep in constant contact and be very contactable with those you already have. Several ways include the following.
1. Use distribution lists like MailChimp mailing lists, Whatsapp groups, private Facebook groups, etc for disseminating (scheduled) newsletters. Your newsletters can announce new products, limited editions, tentpole marketing promotions, etc.
2. Use a Customer Relationship Marketing (CRM) system to easily identify inactive customers and reach out to them. It is an opportunity to remedy problems (like slow moving products, you can offer a discount for them to bundle using one of their faster sellers that you have listed in the CRM).
3. Have a contact center like a live chat service. You may even set up with triggers and automated responses (to frequently asked questions / FAQs) to minimize the customer service you provide on a daily basis. Additionally, live chat systems can also set up trouble ticketing services. This is especially useful for providing customers or their consumers a means for venting complaints to you rather than via social media and allow you can not only resolve the problem but also transform it into a competitive advantage. 
9. Offer a product mix that encourages "sales velocity" for retailers. ("Sale velocity" refers to how quickly product sales turnover within a given time). (See video below) Example(s)
1. Have a family of brands. (See articles on product mix and brand architecture).
2. Introduce new products at least once or twice yearly to remain interesting to your wholesale customers and, in turn, their consumers. Retailers face a lot of competition and seek the next exciting innovation. Use this knowledge to your advantage.
3. Offer multiple sizes that can be sold in different sections. Doing this may transform your brand into an overall higher sales velocity brand than otherwise. Different sizes may relate to seasonal themes, like travel sizes, back to school sizes and so on. Your sales pitch may include selling the idea that your product can be paired with other higher velocity products. Use different presentations as part of your sales pitch regarding the multiple places that your product can be placed. Example(s): the regular plastic tub of peanut butter was a competitively very saturated product. However, by packaging  it in various ways like single-use children units,  single use snack units and so on, non-leading brands were able to improve their 'incremental sales' because their products could better sell the idea of placing their product in locations with various themes, like back to school, point of sale impulse shopping counter and so on. Incremental selling involves finding ways of encouraging the sale of an extra item whenever possible. A classic example includes the small items placed at the cash register to trigger impulse sales.  
10. Provide promotional material as 'silent salesmen' that help sell your product at the point of sale. Depending on your target market's stage within your sales funnel (or your market's mental buying funnel), they may include messages that state the ethos of your business (for customers who are not yet familiar with your brand), unique value proposition (of the product), customer service QR code for FAQs (for new products), limited time offers, special price offers and so on. Materials include shelf talkers, wobbling shelf talkers, shelf talkers with tear off material (like for custom orders), window clings, point-of-purchase (POP) displays (to create very eye-catching display, usually in the form of assembled cardboard shelving placed strategically in stores). See how to create compelling point of purchase shelf talk messages. Consider offering these freely with first orders and or beyond certain order sizes. Be prepared to collaborate with retailers regarding placement area, type and message of shelf talkers, etc to compliment the brands of the product and the retailer. Retailers can also help by providing a profile of their customers and, if you can not get it yourself, images of their brick & mortar retail outlet. The image should make it apparent the ways consumers can move through the store and potential placement possibilities. See how competing brands are currently placed. 
    
     
11. Develop wholesale customers product knowledge base. This could help retailers to boost sales. Methods may include video infomercials, live webinars and information cards or web pages that they can bookmark.
12. Simplify and fine-tune the ordering process. For instance provide well organized product & order sheet, (automatic) order confirmations, straight forward and safe online payment process and order tracking.
13. Have convenient distribution channels and deliver as promised. Consider having a specific shipping day. If you do not meet the expectation, advise your wholesale customer immediately and delight them with something extra when you eventually ship.
14. Be trustworthy. Demonstrate your trustworthiness through the following.
1. Have transparent policies. Make the general terms and conditions very accessible to wholesale customers and employees.
2. Keep your promises. Anything that creates expectations should be considered to be promises you make to the market such as your unique value proposition, policies and product claims.
3. Be honest. Examples include highlighting when your product is unsuitable.
4. Comply with their Vendor Compliance program. For instance, when approaching retailers, do not only ask about the type of barcode they use but also ensure you buy barcodes that are authentic. Read about getting affordably priced barcodes.
5. Show competence. Master your skill so you can deliver desired results.
6. Speak confidently.
7. Really listen and show empathy. Steven Covey rightly explained that "most people listen with the intent to reply, not to understand... [thus, filtering messages through their biased frame of reference]." Overcome this tendency by trying to truly understand, shifting away from your own life perspective.
15. Make meaningful contact with retailers. When first approaching a company, it is usually more efficient to avoid vending departments and online forms if you approach the company's buyer for your product type directly. Ask around to find him or her name and contact details. If you only get the details of assistant buyers, treat relationships with assistant buyers particularly well especially since they often graduate eventually to being the main buyer. If you can not get your vendor alone, explore 'vendor days' that some businesses hold to allow vendors a time period of usually 20 minutes to pitch their products to their buying department. Research how and when you may participate. In fact, assistant buyers may be easier to reach and may help you to enroll. The disadvantage is that your competition will also be pitching on the same day and platform. Some large chain stores have local purchasing departments to cater to the unique needs of their location. For instance, a store in a sunny location may be receptive to products that are less popular globally like sun-clothing, eye shades, sun block and so on. Consider approaching local vending departments with location-specific products.
16. Contact the buyer with correspondence that incorporates as many of these points as they apply. Here is a sample letter.

Hello [prospect's name],

I found your contact details through [name of source]. If you do not buy stock for [the company], please forgive my error and advise the correct person.

I am [your name], the [co-founder / sales manager] at [your company]. We operate in the [x niche / y industry] and offer [name(s) of product type(s)]. Our brand is is renowned for [your brand's UVP / competitive advantage].

When is a convenient time for you to receive a quick visit from my seller to receive a free sample ... ?  /  Would you like to review a free sample of our [specific product by name] to see if you might be interested in stocking it, perhaps for those of your [employees / clients / customers] that [describe your product's target customer profile in a way that reflects your UVP____   Example: desire to deeply and thoroughly remove sweat, oil, grime and bacteria while leaving the skin refreshed for hours and without drying or otherwise damaging the skin]? 

Please find information about this product and company [in the attachment / via the link to an introductory video] below.

> [Specific product name], [Link: _specific product_, polices, process(es)]

If you are interested, please use [this number / the following contact details (email@email.com, link, +1-234-56780)] to advise when and where you wish to receive the free sample or first order.

Regards,  

[Your name, position / role]

 

PS. There is no minimum order quantity (MOQ) for the first order. Just in case you might be interested, some other products that may also interest you include the following [create a list of products below that represent products that are only indirectly or loosely related to the customer but might surprisingly interest the customer].

> [Specific product name], [Link: _specific product_, polices, process(es)]

> [Specific product name], [Link: _specific product_, polices, process(es)]

CONTENT RELATED TO OFFERING GOOD WHOLESALE BUYING CUSTOMER RELATIONSHIP MANAGEMENT

• Good customer relationship management is a worthwhile consideration for wholesale buying customers (as much as it is for consumers).
• Purchase decision
• What is your brand personality? Like retail customers / consumers, wholesale buyers will also trust, like and commit to a brand personality they see as compatible with which to have a relationship.
• Customer experience (CX) management.
• Minimum Advertised Pricing (MAP)
• See how to write compelling point-of-purchase (POP) shelf talker messages.
• Read why you may wish to offer compliant / authorized retailers peace of mind by registering them as 'additional insureds' on your product liability insurance policy.
• Example of 'Why Us' points that promise a good B2B customer experience.
• PROFIT PROTECTION FOR AUTHORIZED RETAIL SELLERS. Example(s): manufacturer will not set lower prices than those of retailers; Minimum Advertised Price / MAP policy to discourage price wars (some brands);  Exclusive distribution channels (some brands);   .
• CONTINUAL INNOVATION FOR YOUR CONSUMER ENGAGEMENT. Example(s): Special and limited editions (some brands); Continued market research to help retail sales strategy and to improve sales velocity.
• EFFICIENT & FLEXIBLE OPERATIONS. Example(s): Online orders; online payments; low minimum order quantities; authentic UPC or EAN barcodes.
• TRUSTWORTHINESS. Example(s): Shared core values; Transparent General Terms & Conditions.
• SUPPORT. Example(s): Free live chat with extended hours, email support, sales material, CRM communication like scheduled email re new releases, feedback box.
• CONVENIENCE. Example(s): Convenient distribution channels.
• PROMOTIONAL OPPORTUNITIIES. Example(s): Free advertising (Conditions apply).

Third party content

• Sharing market research findings with wholesale buyers (especially those who do not know you) can build trust. Some key KPIs include results regarding: 
• consumer willingness to pay for pricing decisions
• consumer ability to use packaging alone to quickly select suitable products (suitable to their segment) from a wide range of products
• Understand the world of your wholesale customers so that you can figure how best to fit into it. In the following video, note how you can improve your offering by demonstrating how you will help customers with their quest to encourage consumers to buy more, how they stock shelves and so on. For instance, if possible, by simply creating multiple sizes for your product, you can allow for your product to be sold in multiple aisles of a store. This was the case for peanut butter companies that struggled to compete with the leading brands until they offered small single-use kid sizes that could be stocked at the checkout section unlike before. This means that the product could promise your retailers a greater chance of higher sales velocity (something they are always nervous of, especially when adopting new products).