If you are looking for original Gucci shoes to buy, you’ll likely not head to Woolworths. In the same way, you’ll probably not visit your local wholefoods store for your favourite bottle of beer. And there’s a good reason for this— these aren’t the right distributors of the product you are looking for. The same idea can be applied to your business. Pick the right distributor, and you likely see sales rising (all things being equal); pick the wrong distributor, and your products will likely gather dust on shelves. So, are you a manufacturer? Do you supply products in wholesale quantities? Here are three tips for finding the right distributors.

Familiarise yourself with trade associations

Most industries have well-established local trade associations open to any manufacturer or supplier in that locality. Take the time to find out what trade associations are available where your business operates. 

Why are trade associations important? Because this is where most distributors, retailers, suppliers, and manufacturers in a local area come together to establish business partnerships and build relationships. Such associations will save you time and money if you’re a new business, linking you with the right distributors. If your business operates in Australia, take the time to find out what trade associations are available and which ones give you the chance to connect with retailers or distributors.

Consider the distributor’s profit margin

Even after finding a potential distributor or retailer, you’ll want to look at their profit margin to evaluate how successful your products will be in their outlets. It also helps to know if your potential distributor already sells similar products to yours, how those products are doing, and if the potential competition with your products will put you at an advantage. 

You also want to find out if your potential distributor is within your budget and if you will both churn out profits. Knowing such information will require asking the right questions and doing thorough research. And even if you settle for a distributor, it’s best to set up a payment plan or a distribution agreement with a retailer or distributor that determines how much and when payments are made, procedures that’ll govern late payments, etc. 

Consider your target audience

It’s also important to identify what type of buyers a retailer or distributor attracts, and this goes back to the Gucci in Woolworths example. Research the common places where your ideal customer typically shops and their locations. Use this information to choose retailers that attract the products you offer. Try focusing your research on your competitors. Find out who they’re supplying their products to, what locations they prefer, and then determine how you can get your products to those locations. Your retailer’s location matters because it also determines what demography lives there and if they fall within your target audience. For example, residents in apartment complexes in Albany NY, will be more likely to purchase home-related products than occupants of an office complex in an industrial area.