The sporting goods market can represent a solid business opportunity for resellers.
Despite its one-time mystique in the world of high technology, a reseller is simply an individual or entity that buys something and then resells it to someone else at a profit. In that respect, a reseller is very similar to a wholesaler. The difference lies in the formal details of the business relationship between manufacturer or supplier and wholesaler or reseller. Because of its breadth and popularity, the sporting goods market can offer solid business opportunities for resellers. The key to success is identifying niches of opportunity where you can sell the right product to the right customer at the right price.
Instructions
1. Decide what you will sell. The sporting goods market offers a long list of options. Analyze your local market to determine what kinds of sports are most popular and where potential opportunities would be. One key to success is selecting products that have solid profit margins. It would require the same amount of time and effort to sell products with lesser margins, so maximize your bottom line by focusing on healthy margins.
2. Find vendors. You can buy directly from manufacturers or you can buy from wholesalers or distributors. Some manufacturers have reseller programs, others do not. The ones that do not will usually sell to you at wholesale or distributor prices. To earn those prices, you might have to agree to minimum purchase amounts or other terms and conditions, such as prompt payment.
3. Get it in writing. Create a written agreement with each supplier that spells out pricing, discounts, payment terms, and other terms and conditions. Include any detail that could ever be disputed by your suppliers in the future. Have a lawyer review the agreements before signing them.
4. Decide who your customer will be. You can sell to sporting goods stores or other retailers. You can sell to local sports teams. You can sell directly to individual athletes. Or you can sell to all three. Each has its advantages and disadvantages. One advantage of selling directly to consumers is the dramatically increased profit on a retail sale versus a wholesale transaction with retailers. A disadvantage is that selling to consumers increases marketing costs such as advertising and promotion, which are essential to a consumer-direct strategy.
5. Analyze how you will compete. Do market research to determine whether you should position yourself as the low-price seller or the provider of something unique, such as a cool new product not yet widely available in your area. In general, it's better to aim for some kind of exclusivity than it is to become known as the cheapest seller. Selling at the lowest price inherently limits profit margins. Selling exclusivity often maximizes them.
Tags: goods market, sporting goods market, other terms, other terms conditions, profit margins, sell sporting