Not Just Price: What Business Owners Should Consider

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The Retail and Wholesale Industry is the second biggest employing sector in Australia. It boasts a workforce of about 1.3 million. This industry provides jobs such as Retail Managers, Sales Assistants, Warehouse Managers, and Supply Chain Managers. As such, it is an integral part of the Australian economy. When it comes to Business to Business (B2B) transactions, wholesale has always been the norm. This kind of transaction offers a lot of advantages, especially in today’s internet age.

With the growing dependence on internet sales, improved delivery systems, and added value given by companies, it is no wonder business owners are turning to bulk buying groups more often than not.

Many factors affect how consumers buy the products they need. For most people, it is the price that’s the most important. For some others, it is the quality. Then there’s the visibility of the product and the way other people respond to them.

Product Price

For business owners, one of the most daunting things to consider is the price of your products. There’s a fine line between making a profit and scaring your customers away. As the owners, their primary goal is to make a profit. However, profit can’t be made if nobody’s buying. It is that simple. Threading the needle in this area is tricky and often tempting. Do they try to make a quick buck and put a big markup, or do they make sure that their product turnover is good? As I said, it is not an easy decision.

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Bulk buying groups give you more freedom when deciding on the price of products. Usually, businesses are offered discounts, sometimes substantial discounts. If this is the case, it won’t be challenging to decide on a price that will be both competitive and allow the owner a good profit.

Product Quality

Selling quality products is a bit simpler. Owners have to rely on the same skills they use when buying for themselves. The perception of products often depends on personal experience. It is finding the best product that suits them best. There’s also the trust that business owners have for their wholesalers. If bulk buying groups stand behind their products, they usually give guarantees to their clients.

Product Visibility

The internet is the best way for products to be more visible to customers. The Australian Digital Advertising Market in 2020 is expected to be worth $6.76 billion. The biggest part of this revenue is Search Advertising with $2.48 billion, and it is not difficult to know why. When people need something, they go on the internet and look for it. Many companies even spend a lot on Search Engine Optimization services to get ahead of the competition. It is that important.

Word-of-mouth advertisement has been around for millennia. For many owners, it is the best way to better their businesses. It is free. 92% of consumers tend to believe suggestions from their family and friends, according to a Nielsen Study. However, this kind of advertising can cut both ways. It can be both positive and negative, so business owners need to be sure it is mostly good. When we hear people talk positively about a product, we often want to try it out. That’s how effective word-of-mouth advertising is.

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Owning a business is never easy. It can be rewarding if you succeed but upsetting if you fail. The one thing you can do is increase the chances of success. Having the know-how and the right connections will certainly help.

Author Bio: Lisa Alther is a farmer of words in the field of creativity. She is an experienced independent content writer with a demonstrated history of working in the writing and editing industry.  She is a multi-niche content chef who loves cooking new things.

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