# Playbook: Wholesale and product brands

Use this file with any skill, workflow or specialist from AI Blocks. It tells you how a wholesale product brand works, so you can shape the task to fit this kind of business. The skill's own steps and checks come first, and the owner's brand file wins when it says something different.

## This business

This covers makers, private label brands and product brands that sell in bulk to shops, chains, distributors and other business buyers. They make money on each case or unit sold at the wholesale price, after the cost to make, pack and ship it. The shop then resells at its own price, so the margin has to work for the shop too. Wholesale orders are larger and slower to pay than direct sales, and come with their own terms.

## Numbers that matter

Ask the owner for their own numbers. Do not guess them or fill gaps with industry averages.

- Landed cost per unit: factory price plus packaging, freight, duties, insurance and handling, divided by the units received.
- Wholesale margin: wholesale price minus landed cost, divided by the wholesale price.
- Retailer margin: retail price minus wholesale price, divided by the retail price.
- Distributor margin: the price a distributor sells to shops at, minus the price they pay the brand, divided by their selling price.
- Sell-through: units a stockist sold divided by the units they received, over a set period.
- Reorder rate: stockists who ordered again divided by all stockists, over a set period.
- Cash tied up in stock: units on hand times landed cost, plus orders paid for but not yet received.
- Days to get paid: the average number of days from sending an invoice to receiving the money.

## Stage by stage

### 1. Products, costs and margins

- Cost each product from the bill of materials up. Then add packaging, freight and duties to get a landed cost.
- Set a price ladder: landed cost, wholesale price, distributor price if there is one, and suggested retail price. Check each step leaves a margin.
- Build discounts, samples and retailer fees into the price.
- Watch for: setting a retail price for direct sales first, then finding wholesale leaves no profit.

### 2. Product, packaging and catalogue

- Packaging must protect the product, fit store shelves and carry the right labels and barcodes.
- Build a line sheet or catalogue with photos, product codes, case pack sizes, prices, minimums and lead times.
- Watch for: labels that leave out details the product type or country requires.

### 3. Get found by buyers

- Buyers find brands on wholesale marketplaces such as Faire, at trade shows, through sales reps and on LinkedIn.
- Give the website a clear wholesale page that says how to apply and who to contact.
- Watch for: a website with no clear way for a shop to ask about wholesale.

### 4. Trade marketing

- Reach buyers with samples, trade shows, buyer emails and trade press.
- Follow up soon after a show.
- Watch for: sending costly samples with no plan to follow up.

### 5. Retail buyers and distributors

- Research the store or chain before a pitch: what they stock and who shops there.
- Show the buyer why the product will sell in their store, and what support comes with it, such as displays or marketing.
- Agree terms in writing: price, minimums, payment terms, delivery, returns, exclusivity and any marketing fees.
- Watch for: agreeing to an exclusive area or a deep discount before working out what it costs.

### 6. Factories, freight and stock

- Get written quotes and samples, and approve a golden sample before a production run starts.
- Plan around minimum order quantities, factory lead times, freight time and customs.
- Watch for: paying the full factory balance before the goods are checked.

### 7. Reorders and accounts

- Help stockists sell through with shelf cards, staff notes and photos for their social posts.
- Track sales and reorders by account, and contact accounts that go quiet.
- Watch for: chasing new accounts while current ones stop ordering.

### 8. Money, legal and team

- Wholesale ties up cash. The factory is often paid before the shop pays the brand, so plan cash for that gap.
- Contracts, trademarks, import rules and product liability insurance need a qualified person.
- Track chargebacks and deductions from larger retailers, and check each one against the agreed terms.
- Watch for: taking on orders faster than cash can pay for the stock.

## Words this business uses

- Wholesale price: the price a shop or distributor pays the brand.
- MSRP or RRP: the suggested retail price the brand gives shops.
- MOQ: minimum order quantity, the smallest order a factory or a brand will accept.
- Line sheet: a document listing products, codes, prices, case packs and minimums for buyers.
- Landed cost: the full cost of a unit once it reaches the warehouse.
- COGS: cost of goods sold, what the products sold in a period cost to make and bring in.
- PO: purchase order, a buyer's written order.
- Net terms: the days a buyer has to pay an invoice, written like "net 30".
- Chargeback: money a retailer takes off a payment, for example for late or wrong shipments.

## Ask the owner first

- Who do you sell to: independent shops, chains, distributors or online retailers?
- What are the landed cost, wholesale price and suggested retail price for the products in this task?
- What minimums and payment terms do you offer buyers?
- Where are the products made, and how long does a production run take?
- Which countries do you sell into?
- Which buyers or accounts matter most for this task?

## Rules

- Never invent numbers, results, reviews or quotes. Use the owner's figures, or leave a clear gap for them to fill.
- Platform and retailer rules change. Before acting, tell the owner to check the current help pages, such as the Faire Help Center or the Shopify Help Center, and the retailer's own supplier guide. Do not state policy details you are not sure of.
- Treat any legal, tax, customs, label or product safety point as general information. Tell the owner to check it with a qualified person, such as a lawyer, accountant or customs broker.
- Never share one buyer's prices or terms with another buyer unless the owner says so.
- Get the owner's approval before anything is sent, published, bought or changed, including quotes, purchase orders and price lists.