323 | 6 Reasons Why You Should Not Be Doing Monthly Wholesale Promotions

There is a lot of noise on the internet. Lots of gurus, experts, and other people claim you have to do things a certain way in order to be successful. We see ads on social media telling us there is a magic formula or 5-step process that will make all of our dreams come true.

It seems that a new business coach is popping up on the scene every day with some new system or lived experience that we have to follow.

I firmly believe that there is room for everyone and that we all have unique experiences and expertise to share that can benefit others.

However, I also know that as a consumer of content and someone looking for guidance in your business, it is hard to know who to trust. Especially when you feel like the entire internet is screaming at you about some new method or strategy that you need to implement, it can feel really overwhelming.

This brings me to today’s podcast topic… a question came up in our community about whether or not you should be doing monthly promotions for wholesale customers.

The answer is no, absolutely not, and we’ll get into six reasons why you should not be doing monthly wholesale promotions for your business.

Today's episode is brought to you by our Is Wholesale Right for You private podcast!

This free 12-part audio series will help you decide whether wholesale is a good next step for your specific business. After listening to this audio series (in less than an hour), two things will be true:

You'll know whether you want to pursue wholesale for your product business
You'll have the confidence and action steps to get started with wholesale.

Proof to Product’s Values

I want to take a moment to remind you of our values here at Proof to Product and why we’re different than other business coaches or educational programs.

First and foremost, I’ve been doing this for a long time… and I have a stellar track record.

I’ve been a business strategist for over 20 years, working with large corporations and thousands of small businesses.

I ran my own successful wholesale brand for over eight years, I have two MBAS - one in marketing and one in finance.

Through Proof to Product, we’ve helped thousands of creative entrepreneurs get their products into their dream stores and build a life-first business.

But, most importantly, I care deeply about the people we work with and the results that they achieve.

We know every business is different, and we support our students in finding the right path and strategies for their circumstances.
We advocate for them to work at their own pace and to forge their own paths with our support.
We believe slow, steady growth is how strong businesses are built.
We know that small, intentional steps create momentum, which leads to clarity and forward progress.

Trust, honesty, integrity, approachability, honest conversations, and meaningful connections matter here at Proof to Product. We want to know you and support you.

We believe in being generous with our time, attention, knowledge, and resources so that you get the results you’re striving for more quickly.

We foster a collaborative, connected environment and work to create a safe, supportive, and inclusive space for you to learn in and contribute to.

Our focus at Proof to Product involves elevating and supporting product-based business owners. We do this through our weekly podcast, free classes, and resources, as well as our paid programs. We want you to get the help you need at all stages of business. Because when one of us thrives, we all thrive.

I know that there are many of you - myself included - who have invested in coaching programs or courses that didn’t meet your expectations. Maybe you felt burned and unsupported at the end - which creates distrust and even more hesitancy when considering who you want to learn from.

I share this because our industry is changing and business is particularly hard right now, which means that you can’t waste time, energy, or money on the wrong strategies or the wrong business coaches.

If you have questions about our programming, community, or company values — please reach out.

We’re always happy to answer your questions. We know the online education space is loud and crowded but we’ve been told we’re not like other educational programs… that our efforts to go above and beyond are noticed and appreciated — and that feedback makes my heart happy.

Should I Do Monthly Wholesale Promotions?

All of this ties to the question that spurred this episode.

One of our Paper Camp alum recently asked “I’ve been in touch with a brand manager from a third-party wholesale sales platform who wants to help me grow sales on their platform. The brand manager’s number #1 piece of advice was to run a site-wide promotion every month so that I could acquire new customers on that sales platform. This advice conflicts with Katie’s advice to use promotions sparingly. What is everyone else doing?”

I won’t lie… when I read this in our forum, my heart sank. It kills me that this platform encourages folks to do monthly wholesale promotions because the only one that benefits from this sales strategy is that wholesale sales platform. Not the seller.

This is an example of how you have to be careful of the advice that you consume and implement in your business.

I want you all to think critically about where advice is coming from and, specifically, what experience and motivations that person has - who is sharing the advice with you? Not everybody has your best interest at heart.

6 Reasons to not do Monthly Wholesale Promotions

Here are 6 reasons why I do not recommend monthly promotions for the wholesale market.

1. hurts your profitability

Wholesale is a volume game that requires store owners to order in higher quantities but at lower prices.

For many wholesale brands, particularly hand-made or small-batch product sellers, profit margins are already slim when selling at wholesale prices.

To offer an additional discount (every single month) on wholesale prices hurts profitability and can make wholesale unsustainable for independent brands.

We want you to build a sustainable, profitable business, and offering continuous, additional discounts on wholesale prices cuts down your profitability.

2. Discounting your products every month devalues your brand

When you constantly run promotions and discounts, the perception of your brand changes in the eyes of the consumer.

When you’re running monthly promotions, the messaging turns to the discount being offered rather than the unique features, high quality, and care that go into making your products.

Your brand story, the reasons why you created this product, and the story behind why you started this business can get lost when you’re offering discounts every month. This impacts your brand’s perception in a negative way.

3. trains your buyers to expect & wait for discounts before placing their order

I know we’re talking about wholesale here with this example, but let’s think about our own experiences as a consumer.

As a mom of 4 whose kids are constantly outgrowing their clothes, I know that Old Navy sends multiple emails with discounts each week. If I need to stock up on basics for the kids, there is likely a promo code sitting in my inbox and if there isn’t one, there will be soon.

So, I’ll wait for it to come in, and then I’ll buy.

Now, none of you are likely striving to be Old Navy, but my point is we set the tone with how our customers interact with our brand.

If we’re constantly offering discounts, customers will pay attention and adjust their buying patterns based on what they learn from us.

If we use promotions sparingly, it becomes a not-to-miss event rather than an expectation for customers.

4. Monthly discounting tends to attract the wrong customer

The brands that are excelling with wholesale have built strong relationships with their wholesale customers.

These wholesale accounts reorder frequently, they tend to increase their average order size and they often become long-time loyal customers who are invested in the products they are buying and the brands creating those products. These are customers who are invested in the brands.

In contrast, customers who make buying decisions purely on price tend to be less loyal and less invested in the brands that they buy from. They are also less likely to be repeat customers.

I encourage you to look at your own sales data and specifically look at the stores that have placed orders during promotional periods. Have they reordered?

5. creates a ton of extra work for you

Marketing promotions take preparation if done well.

Discount codes need to be created, website & social graphics need to be made, sales copy & marketing copy need to be written, emails & social posts need to be scheduled, and websites and sales platforms need to be updated.

Sure, you can create some systems to make this process easier, but nonetheless, it is a lot of work to be implemented on a monthly basis.

6. distracts you from other areas of your business that need your attention

This is a particular pain point for solopreneurs or people with very small teams.

You, as a business owner, wear a lot of hats. We know this. We live this day to day. But, if your days are spent preparing for each month’s sales promotion — that takes you away from other important aspects of running and growing your business.

Yes, we need sales in our business, but running monthly wholesale promotions is not strategic or sustainable.

As someone who has been entrenched in the wholesale world for over 15 years and who has supported many, many brands through transitions and market pivots… this is not the best way to boost sales or create a profitable, sustainable business.

We teach thoughtful strategies that help you build strong relationships with wholesale accounts. We are champions for repeatable systems that can make the customer acquisition process easier. We provide strategies for adapting to market changes as things shift. We believe in working smarter, not harder.

Monthly Wholesale Discounts and Promotions Aren’t The Answer.

Please consider the source of the advice that you’re taking and the motivations behind the person offering that advice.

Think critically about where that advice is coming from - what experience, perspective, and motivations does the person have who is sharing that advice with you?

Does that person (or their company) benefit from you taking action on the things they are suggesting?

Not everyone has your best interest at heart, unfortunately.

Quick Links

Here is a quick recap of links to other helpful blogs and podcasts shared in this post.

If you have ever wanted to pick my brain, or get my eyes and ears on your business, Proof to Product LABS is the place to do it.

We have monthly group coaching calls and a wide range of On Demand training specifically for product-based business owners. We open up the doors a few times a year so be sure to sign up to learn more!

learn more about LABS

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Connect with Katie Hunt

Katie Hunt is a business strategist, podcaster, mentor and mama to four. She helps product based businesses build profitable, sustainable companies through her conferences, courses and coaching programs.

Website: prooftoproduct.com | Instagram: @prooftoproduct