Saving Money On Interchange For Wholesalers and Distributors
Manufacturers that operate on business-to-business (B2B) and business-to-government (B2G) business models partner with wholesalers and distributors to deliver products to their clients. During this exchange of products and goods, there is also an exchange of electronic payment via credit card transactions. These occur daily and are an important part of the business that manufacturers carry out regarding their supply chain. At Interchange Pros, we work with wholesalers and distributors to ensure transaction fees are low and don’t affect their ability to make a sustainable profit.
We know that with each transaction, you are conducting business to generate a positive cash flow. As part of our service suite of solutions, we begin with an initial consultation to better understand your business payment needs. Based on your business requirements, we outline a cost-reducing strategy to resolve costly transaction fees your business is incurring with each sale.
Types of Wholesalers
We offer cost-reduction consulting to a variety of B2B and B2G wholesalers. According to the Census of Wholesale Trade, there are three types of wholesalers and we work with them on interchange optimization.
These are firms that are engaged primarily in handling large amounts of products and then reselling those products to other businesses in industrial, commercial, and institutional areas.
Agents, Brokers, Commission Merchants
Also known as independent middlemen, these wholesalers represent the non-competing products of many manufacturers to several retailers. This category of wholesalers is particularly popular with producers with limited capital who can not afford to maintain their own sales forces.
Manufacturers Sales Branches and Offices
Manufacturers have corporate and sales offices throughout the country and are in charge of distributing and managing the manufacturer’s products at the wholesale level.
Types of Distributors
Distributors are the working arms of supply-chain and logistic operations and they play a vital role in partnerships they have with manufacturers. At Interchange Pros, we also do our part by providing distributors with cost-reduction solutions for every transaction that is made via credit card.
The three main types of distributors that we focus on are:
When a manufacturer/vendor wants to sell their products as quickly as they can, this type of distributor is normally used. They work with multiple vendors at a time and get a good sell-through of goods at high volume for low prices.
Specialized distributors are often selected by manufacturers/vendors and are experienced in distributing their products. A high level of service is usually maintained and profit margins are maximized to their full potential.
These distributors focus on niche markets with specifically targeted clients such as other businesses.
Interchange rates in the Supply Chain
Business transactions are conducted every day; therefore supply chain networks and distribution channels are always moving. From the manufacturing of the product to the hands of the consumer, the manufacturer-distributor and manufacturer-wholesaler relationship are symbiotic. Without distributors, manufacturers would struggle to deliver their products to customers. Without manufacturers, distributors would have nothing to sell.
And without our interchange optimization and cost-reduction solutions, your transaction rates could greatly affect the amount of revenue you keep each month as a wholesaler or distributor. In the long run, those interchange fees can accumulate on your financial statements at the end of the year and become a headache. The reality is that when credit cards are used within the wholesale supply chain and through to retail, the same product’s end cost can actually be inflated by merchant service fees multiple times!
Make More Money on Every Transaction
As a wholesaler or distributor, you are making transactions with other businesses all the time and these commercial accounts have credit cards for business transactions. One of the burdens these credit cards come with is high transaction costs which can take a toll on the amount of profit that is generated by your business. This is where the professional team at Interchange Pros can help you reduce those costs so you can earn substantially more money and invest it into growing and expanding your business operations.
According to the National Association of Wholesale-Distributors, the wholesale distribution landscape is being transformed by trends in technology and new methods of saving on business costs are emerging.
As the decision-maker of your business operation, you are always looking for ways to save money and you can do so with payment solutions from Interchange Pros. We provide the most seamless payment processing system on the market today. After setting up your new credit card system with Interchange Pros, you will qualify for lower interchange rates. As a result, for each business transaction you are earning more in the long run and turning over a bigger profit at the end of the year.