Scaling Your Brand: Navigating Wholesale and Bulk Orders

The Next Step: From Small Batch to Scalable Business

As a brand owner, seeing your products gain traction is incredibly rewarding. The next logical step is often to transition from direct-to-consumer sales to a wholesale model, a move that can significantly increase your reach and revenue. However, navigating this new territory requires a different mindset and a strategic plan. At Salve Naturals, we see this as a critical milestone and a true sign of a brand’s potential. Understanding the ins and outs of wholesale and bulk orders is essential for a smooth and profitable transition.

Wholesale: Building a B2B Partnership

Moving into wholesale means you're no longer just selling a product; you're entering a business-to-business (B2B) relationship. You're now a supplier, and your retail partner is looking for a reliable product that will be profitable for them. The foundation of this partnership lies in a few key considerations:

• Pricing Strategy: A sustainable wholesale price is crucial. The industry standard for wholesale is typically 50% of the retail price. This allows the retailer to mark up the product for profit while still offering a reasonable price to their customers. When setting your retail price, you must factor in all costs—ingredients, packaging, labor, and marketing—and ensure you can still achieve a healthy margin at a 50% wholesale rate.

• Minimum Order Quantities (MOQs): MOQs are a standard practice for manufacturers and suppliers. They represent the smallest number of units a retailer can order at once. Setting an MOQ ensures that the production run is economically viable and profitable for you. .

• Logistics and Communication: A professional wholesale relationship requires clear communication about inventory, lead times, and shipping. Having a transparent system for placing orders and managing fulfillment will build trust and lead to long-term partnerships.

The Power of Bulk Orders

When your brand is ready to scale, placing bulk orders with your supplier becomes a strategic advantage. This isn't just for wholesalers; even direct-to-consumer brands benefit from purchasing ingredients or bases in larger quantities.

The primary benefit of a bulk order is cost efficiency. The per-unit cost of a product or ingredient decreases significantly as the quantity increases. This allows you to:

• Lower your production costs, which directly increases your profit margin.

• Streamline your inventory management, as you'll spend less time and money on frequent reorders.

• Secure your supply chain, reducing the risk of running out of a key ingredient.

By embracing bulk and wholesale, you’re not just scaling your production; you’re scaling your entire business. This strategic move allows you to focus on marketing and brand building while ensuring your operations are efficient, profitable, and ready for growth.

Citations

1. U.S. Food & Drug Administration. (2019). Cosmetics Labeling Guide. Retrieved from FDA Website.

2. De Groot, A. C., & Maibach, H. I. (2018). Topical and Transdermal Drug Delivery: A Practical Guide. CRC Press.

3. Pinto, A. L., Morais, A. C., & Pinto, M. M. (2019). Quality and Safety of Cosmetic Products. In Cosmetic and Toiletry Products (pp. 1-15). IntechOpen.

Article by: Dahlia Kelada MSHS-INTM, SALVE Founder/CEO, Integrative Medicine Educator, Cosmetic Formulator