Each state has plenty of wholesalers. Some are great, others not so much. Some are tiny, some are huge. One will kill it for you for 3 years until the one person who was responsible for 96% of your success leaves, finds a better gig, or burns out; and business drops off a cliff. Some are great at selling wine or beer or sake or booze; few successfully excel in several categories. Some states have clear answers - or answers - to the question "who should be my wholesaler." Others don't.
From an import and/or brand owner standpoint, one's network of wholesalers defines how well one's message will be told, how many people will go out into the market to fight the fight, one's product(s) in the bags, tasting people on the stuff, explaining who makes it, why and how, how much it costs, and asking for that sale.
Now, the regular way of doing business between a Brand and/or Importer and a wholesaler tends to look like this:
Supplier wants to get into market X, finds wholesaler.
Big goals/fundings/aspirations/egos go to large wholesale companies right away.
Smaller to smaller wholesalers.
"Ambitious yet realistic" annual purchase goals are set to a wholesaler who either knows they aren't feasible or decides to lie to herself thinking it will all work out in the end.
Supplier is often misled about how magical her goods are and what the market will deliver.
Wholesaler has 5 or 50 or 500 other products to launch that year, is spread thin, staff turns over, time for education is limited, few if anyone is really pumped about the new addition to the portfolio. Another product hits the warehouse.
First 18 months, things are fine. Then pressure increases slowly; by the end of year 2, supplier is not happy as targets are not met while wholesaler finds excuses. Five years into it, supplier brought in someone new to handle sales and/or investors who were in no rush are growing impatient.
Supplier switches wholesalers.
The whole thing starts again in a self-perpetuating circle.
I made a lot of mistakes initially. PM teamed up with wholesalers that were not necessarily aligned just because nobody else wanted to give our stuff a try. When a state seemed to be doing well, I did not focus on it nor try to understand much why things were going well, and waited for business in that state to not do so hot to pay more attention. I spent too much time in places where I thought business had to be great and failed to cut my losses when everything pointed in the direction of "this is not going to happen," etc…
One does, one learns. So over the years, we have started to look at doing this a little differently:
We started looking for PARTNERS.
Over the years, what we learned looks like this:
A good wholesaler is led by people who care equally about their staff, their customers, suppliers, and the products they represent.
The vibe is pro yet casual; the team is considered and well-treated, feels secure in their positions, part of an adventure, proud to represent the business they work for, and with potential to move up; turnover is low, people want to stay.
People in charge are genuine: they present themselves as who they are and not as who they want to be in the professional setting. This vibe spreads to the rest of the team. One can't make solid human connections if one is not comfortable with who one is and fakes it.
The company offers ongoing education and experiences (be they dinners, events, or travels).
The portfolio is curated: one can't carry everything at every price point and be successful and/or credible.
Communication is open, constructive, and friendly.
Both parties are in this for the long run, agreed to help each other out, and to do their best to make it work, communicating a lot and often as they go.
Two businesses deciding to fight the fight over a long period of time with the common goal to help build a brand in the market, educate customers and consumers, and get one to taste the stuff.
It is all about people: real humans who care, who one feels a connection with, a shared sense of passion, a genuine and mutual excitement about one’s brand/company/products.
Today was spent with the Prestige Ledroit team, which covers DC/MD/DE.
Good company, good people, real partners. This is thanks to people like these that we have a business.