Several threats currently face the wholesale distribution industry. The current supply and shipping crisis has made it difficult for businesses to receive their products and goods in a timely manner.
Combined with this threat is the industry’s growing consolidation. As more businesses fall under massive corporations’ wings, it becomes more challenging to increase profit margins.
As a result, many wholesale distributors have experienced shrinking profit margins in the last two years. Your business may have suffered these shrinkages as well.
But, it doesn’t have to stay this way. Although many challenges face wholesale distributors in 2022, there are ways to get ahead.
Where can you find these strategies? If that’s what you’re asking, you’ve come to the right place!
We’ll explore some of the best strategies for increasing your profit margin in the guide below. Let’s jump right in, shall we?
Direct Store Delivery’s Benefits for Wholesale Distribution
One way to improve your profit margins is through direct store delivery. Direct store delivery benefits the entire supply chain, including manufacturers, retailers, and customers.
Direct store delivery (or DSD) places the cost of inventory, delivery, and stocking labor on the manufacturer. In return, retailers can reduce their capital investment and operating expenses.
As you may expect, this increases the retailer’s (in this case, you) profit margins. You can reduce your overall expenses and focus on raking in profits instead.
This method also benefits your manufacturing partners. Direct store delivery supplies a manufacturing representative on-site who visits every few days.
This representative gives manufacturers an inside view of the trends in a store. As such, they can predict what products they need to send and the amount.
From there, manufacturers can ensure you have a constant supply of relevant products. This way, you don’t face as many supply shortages.
Now, instead of cycling, ordering, and stocking, you can focus on customer service. Each of these effects can increase your profit margin and improve your business processes.
The Handshake Sales Automation Alternative
Many businesses utilize virtual handshakes as a form of sales automation. This technique became widespread in the 2010s as a way of improving sales.
However, businesses may have handshake sales automation and not use them well. So, let’s talk about some alternative uses for this practice.
First, you may see improvements if you revamp your sales automation. For example, consider your email marketing campaigns.
Email remains one of the best ways of communicating with customers over the years. The Financial Post reports that email marketing has a potential $42 ROI for every dollar spent.
However, your emails must provide immediate value to your customers. So, keep the email short and to the point. Customers are far less likely to engage with lengthy emails.
But, although an email can work, it’s best to have a handshake sales automation alternative. Too many businesses rely too much on their automated technology. The problem now is that many people would rather interact with a person.
So, what alternatives can you use for this automation? One option is to lean into social media.
Social media offers many of the benefits of email marketing. For example, you can use social media to post advertisements and create engagement from users.
Social media also offers further engagement opportunities. For instance, you can get your social media posts to people’s feeds without needing people to subscribe to a mailing list. You can also participate in discussion boards, helping people see you as a human being and not a faceless corporation.
Using a Handshake Mobile Ordering Alternative
Another way to improve your profit margin is through a mobile ordering alternative. A B2B eCommerce mobile app allows your customers to make larger and faster orders.
How does this work? First, your customers’ field reps can increase their order size and make faster and smarter purchases.
Customers can also use high-definition digital catalogs to help make the best purchase decisions. These catalogs include multi-media images, videos, and product descriptions. These can give a better idea of what items they can choose from.
Your customers can also use a 360-degree view of their accounts and credit information. The best thing is that they can access this information in real time.
Finally, these apps provide real-time access to trade promotions and field rep information. They also access customer dashboards to help reach targets and increase their daily performance.
Mobile CRM Applications
Finally, you can increase your consolidation with mobile CRM applications. These applications help you monitor your customer accounts and orders through several functions.
First, these apps provide a 360-degree view of assigned customers at any time. You can also view any past and present order documents from customers. As such, you can maximize your customer interactions.
From there, you can access sales intelligence data on several accounts. These apps also provide access to credit information, contacts, and locations to help manufacturer reps make the best buying decisions.
This way, you build a better reputation with your customers by helping them find the products they need. From there, customers trust that you have their best interests in mind. So, they’re more likely to use your distribution for other occasions.
Our mobile CRM application for Wholesalers is also accessible for several systems, including Android, iOS, and iPad apps. They’re also accessible offline.
Using Our Services
Using these techniques can increase your profit margin. The question is, where can a wholesale distribution company find these services?
If that’s what you’re wondering, consider using our services! We offer several comprehensive solutions that can improve your business performance.
For example, we provide mobile CRM apps, proof of delivery, and mobile order taking. We also offer these services for several industries.
So, don’t hesitate. Contact us today to find the best services for your business!