5 Simple Fixes to Wholesale Terms Mistakes That Cost You Sales

Wholesale terms are one of those things that are no big deal if you have them right but are a major barrier to wholesale sales if they have issues. You can have a gorgeous product line, a line sheet you toiled over, a website that’s easy to navigate… but if you make a crucial mistake in your wholesale terms, you will kill the sale before it can happen (or live to regret it.)

Honestly, shop owners’ tolerance for confusing or unwieldy terms was low before Covid, but it’s nonexistent in the stressful and uncertain post-Covid times.

But here’s the thing: it is not hard to do wholesale terms well. In coaching makers on their wholesale terms sheets (also called Wholesale Terms and Conditions), it’s usually just a matter of making a few tiny changes to get things correct. In fact, I’ve found that there are five really common mistakes that are especially costly for makers and small brands -- that take less than 5 minutes to fix. And that’s what we’re going to help you avoid.

One quick note before we jump in with those mistakes and how to avoid them. In our work at Wholesale In a Box, we help makers grow wholesale with a focus on independent shops and boutiques. So this guidance is exclusively for makers and small brands who are wanting to grow wholesale with indie stores. If you’re selling to nationwide retailers like Target, Whole Foods, or Nordstrom, you need a very different approach to wholesale terms (which we won’t cover here.)

5 mistakes you might be making in your wholesale terms (that will cost you sales):

• You use legalese.
  Instead of saying “Full and complete payment required before order processing can commence”, why not say, “Once you pay your invoice, we’ll put together your order and ship it out to you.” The latter is clearer, less intimidating, and doesn’t give the reader the sense that you’re on opposite sides of a battle. Yes, you need to make your wholesale terms clear and concise. But that doesn’t mean you need to use "legalese" or excessively formal wording.
  

• You have boilerplate or unnecessary terms.
  Many makers have wholesale terms that sound "professional" but don't really represent their intention and aren’t necessary for their situation. If you add rules and parameters you don’t need, store owners will feel burdened without any benefit. Every term you introduce should be for a reason. If something is not important to you, cut it. Include the terms that feel important to your business now (you can always add or refine terms later, as you grow).
  

• It’s not clear how to order.
  The very first item on your Wholesale Terms should be a clear, concise description of how to place an order with you, what payment you take, and when you need payment (on ordering, on shipping, or some combo?) This can be an informal system (like sending you an email with the order) but make it crystal-clear and don’t require the store owner to jump through a lot of hoops.
  

• You have unusual or inconvenient pricing structures.
  Most makers and small brands should have a simple wholesale pricing setup. For instance, your wholesale pricing could be 50% of your retail pricing. Or it could be 40% of your retail pricing. Stores vary when it comes to the exact markup they need markup (and this will vary by product type too). But every store I’ve come across wants a markup of 50% or more AND they want that markup to be clear and consistent (not to vary a lot, depend on volumes, or relate to any other variables.
  

• It’s hard to find your wholesale terms.
  Sometimes I’ll see makers put certain terms early in the line sheet, others on every page, and still others at the end of the document. Why make store owners hunt for the information they need? My recommendation: put your wholesale terms on one page (whether in your line sheet or on your website) and titled something like: Wholesale Terms. Don’t spread them out in different places or repeat them in confusing ways.
  

Ultimately, fantastic wholesale terms are common sense: be friendly, be straightforward, make it easy to order from you, and make yourself clear. It’s a way of handling terms that will protect you the best, not get in the way of sales, and start your stockist relationship on the right foot.

PS - Looking for more resources on wholesale terms and pricing? Right this way…

• How to Know Whether Your Wholesale Minimum Is Hurting You

• How to Make Pricing Work for Wholesale: 5 Things to Try

• Offering Net 30 Terms - A Scary Reality and Some Helpful Tips

• Zip Code Protection and Stockist Exclusivity

• And of course, get our comprehensive guidance on Wholesale Terms in the complete Wholesale In a Box training course.