How To Maximize Sales Profit?

In business, business is the process of buying and selling goods and earning the difference, but it also involves a lot of knowledge.

First, wholesale and retail profit models.

The biggest difference between wholesale and retail is that a wholesaler sells a single commodity with a low profit, only to make money through a large number of shipments, while the retailer sells a single commodity with a high profit, but the shipment is less than the wholesaler.

At the beginning of the shop, most operators did not want to press too much goods, so they would choose only a small part of each commodity as a sample, and gradually solve the market demand of consumers through samples.

If the goods are found to be in great demand, they will decide to replenish the goods because it is relatively safe and risky.

But this form also has one drawback. When you buy a single product from a wholesaler, no one will give you the goods, even if the price is higher than the wholesale price.

In this way, the higher purchase price plus profit of your product will inevitably result in your price being uncompetitive, and many customers will give up the purchase, which virtually interferes with your judgement on the market prospect of this product.

So before you do it, you need to go deep into the needs of the customers and have confidence in your choice of goods. (if you don't have confidence in your choice of goods, what kind of goods do you enter?), give wholesalers enough sincerity and confidence in the purchase process, and strive to get a good wholesale price with your quantity.

Two. Quantity of stock

The quantity of purchase includes multiple parties, such as the amount of purchase, the type of goods to be purchased, the type and quantity of a single commodity, etc.

Make sure that there is a simple way to purchase the amount, that is to add up the whole month's operating cost of your shop (including store rent, artificial electricity and water, tax, management cost, etc.), then divide it into profit rate, and the data you get will be the amount you need to purchase every month.

If your total operating cost is 5000 yuan, and the average profit of the product is 200%, then you need to get 2500 yuan at least, because 5000/200%=2500.

In that case, you can just balance your income and expenditure.

If you only enter 2000 yuan.

If you sell these goods in a month, your profit will be only 4000.

It's not enough for your expenses.

The first batch should be as many as possible, because you need to give customers the choice of various products.

When you have some solution to customers, you can lock in certain kinds of products, because funds are always limited. Only when you concentrate your funds on a limited variety, can you purchase large quantities of individual products and ask wholesalers to give lower wholesale prices.

When you lock certain kinds of products, the number of individual products can be divided into display quantities, inventory quantities and turnover quantities.

The number of display, then the number of goods you put on the rack, the quantity of stock, the number of goods you stock in the warehouse, turnover quantity, that is, the actual quantity shipped during the two purchase period.

From the conclusion drawn by managers with many years of experience, at least every single product needs 3 talents to maintain a relatively benign turnover of goods.

When you enter a product and sell well, you will soon need to replenish the product individually. This is no longer a matter of time and money.

And when you do not replenish the goods, you have to watch the customers leave with disappointment.

But if you enter 3 identical products, other products will probably need replenishment during the sale of the 3 products, so that you can replenish the goods one time at a time to increase the efficiency of replenishment, thus saving the replenishment expenses.

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Three. How to get wholesalers' support?

There are two factors that affect wholesalers' support for you: the first is your first purchase amount. If you first purchase too little, the wholesaler will think you have no strength or you lack confidence in his products. Second is the frequency of replenishment. If you often go to the wholesalers to replenish the goods, even if the quantity is not large, wholesalers still think that your goods turnover is fast, which can bring long-term benefits to him.

The wholesaler's support for you will be announced as soon as new goods are available, and he may adjust the price automatically when he comes in next time.

And wholesalers, if you think you are a top customer, will usually tell you that they are selling well in the near future.

Four. Wholesale market rules

1, do not check your products at wholesale stores.

When you mention the goods, you just need to clear the quantity. Usually you go back and find that the product is defective and then ask for a change. (of course, it's not too far from the purchase time).

If you pick up the goods in the wholesale store after picking up the goods, it will make the wholesalers think you are a very troublesome customer, so they do not want to deal with you for a long time.

2, do not expect to reduce risks by changing wholesalers.

When purchasing, do not ask wholesalers if products can not be sold for good sale. If you ask this question, you will be recognized by the wholesalers that you have never done business before. If they are able to master such a step in business risk, you may get rich. Next, you need to guess what kind of quotations the wholesalers will give you.

Wholesalers are not obliged to undertake the risk of purchase for you. He can support the replacement of defective products for you.

3, the wholesale market price adjustment is very small.

As mentioned earlier, the profit of wholesalers' single goods is very low, and the reduction of commodity prices can not be like retailers. They are usually adjusted at 2%~3%, which can be reduced by 5%.

If you hang around a wholesaler and ask for another 20 percent off on the wholesale price, it will make wholesalers realize that you seldom mix up in the wholesale market.

Another place is in the wholesale market, usually the goods are pported by car or railway (because the pportation cost is much lower than the express), and the buyer is responsible for himself. If he meets a good wholesaler, he will be willing to help you to check the goods, but the cost and freight to the goods yard must be paid by the buyer himself.