Let’s not fool ourselves. Whether or not the experts call the current economic situation a “severe downturn”, a “recession”, a near “depression” or a “depression”, the climate to sell product is a tough one to navigate and survive with the top and bottom lines intact. While the daily news reports about an unhealthy economy can be discouraging to the average working person, the news is even more devastating to those who make a living selling and distributing product. Wholesale Distributors do not have to wait for the government to put their official stamp of misery on the status of the economy to understand the pain of today’s economy. While retail businesses are on the front line feeling the effects of consumers making fewer purchases, the wholesale distributor is dealing with the serious economic wound that threatens to prolong the pain for months to come if the Wholesale Distributor does not get a handle of his business. The business of servicing customers is essential during any economic climate, but keeping the customer satisfied during an economic downturn is a priority.
The Wholesale Distributor must not lose sight of what is important to business — the customer. In today’s economy, like in every economic downturn, the purchasing power of the consumer is always at stake. Once the consumer has decided to scale back on spending, the trickle down process begins. If the retailer’s existing inventory moves slowly out the door, he will resist adding onto that inventory. And at that point the wholesale distributor can anticipate the inevitable decline in orders.
The wholesaler must be a good resource for his customers from day one of the business relationship. But during the harshest of economic times, it is crucial that the wholesale supplier be a trusted resource for the buyer. The wholesaler must make it much easier for the buyer to act in a way that meets his own business needs. Fewer and smaller orders may be the harsh reality during an economic recession. This reality must be accepted to move on during these trying times. The recession has affected all industries. The wholesale distribution industry represents about 7% of U.S. GDP. This is an important industry and it is vital that you as a wholesaler maintain your business to assist in an economic recovery. The terrible economic news can be overwhelming, but keep your customer base happy during and after an economic storm. Refuse to be a victim of an unforgiving economy. Wholesalers must be survivors.