How to establish a wholesale account if you are a new business?

Answer you may have to pay the first few orders COD if you pick them up, or prepay for them if they get shipped to you. Sorry, the trick doesn't work when you apply to 4 different suppliers and use each other as credit references Answer - First, be a legal business. Get licensed in your state, have a Federal Tax Number (EIN), most legitimate wholesalers won't touch an unlicensed business.

Those that will are usually middlemen and you're not paying true wholesale through them. Second, act like a professional and write a letter of inquiry introducing your company, asking for an application to become a dealer or open an account. Check if they have a website, look for dealer or account requirements.

See if they have a minimum order size (most will), terms, shipping and pickup. A personal visit is great if you are new - sell yourself to them and your vision and enthusiasm for your business. If you have done your due diligence, started legally, and have a solid business plan some wholesalers will become allies and help you get going in earnest.

Just don't expect them to extend credit immediately or sell to you on consignment, but most will open a COD account and assign you an account manager who can become a valuable business asset. Remember, they want you to succeed but it's your job to convince them they won't be wasting their time and money on a quick burnout.

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