In the hustle of life as a business owner or entrepreneur, it’s easy to overlook one critical question: How much is your time worth? This question doesn’t just pertain to your value as a person, which is immeasurable, but also to the way you approach your business.
Many of us unknowingly sell ourselves short, especially when it comes to the things we dedicate the most energy to—like selling sheds.
For those of you in the shed sales industry, how many times have you worked tirelessly to sell sheds for a manufacturer, earning a set commission of 10 to 13 percent? Have you ever paused to wonder if you’re truly getting the most out of your efforts?
I addressed this briefly in a previous article on wholesale versus consignment, but it’s such a vital topic that I wanted to explore it further.
THE CONSIGNMENT MODEL: CONVENIENCE WITH LIMITS
Before diving into the details, it’s important to note that the consignment model has its merits. It’s straightforward and enables you to focus solely on selling, as the manufacturer often handles delivery, upfront inventory costs, and sometimes even marketing. For some, this approach fits perfectly into their business strategy.
However, the consignment model has a significant limitation: it caps your potential growth. When you’re working on a return of 10 to 13 percent, you’re left to cover payroll, lot expenses, and other overhead with minimal room to reinvest in your business. This can hinder your ability to scale, leaving you in a cycle where growth is slow and incremental at best.
ENTER THE WHOLESALE MODEL: OPPORTUNITY WITH EFFORT
The wholesale model, on the other hand, offers the potential for a much higher return on your efforts. With this approach, you’re not just selling sheds; you’re purchasing them upfront and reselling them at a markup, often earning a profit margin of 40 to 60 percent. This dramatic increase in revenue can give you the resources needed to grow and scale your business at a much faster rate.
Of course, transitioning to the wholesale model comes with its own set of challenges. You’ll need to account for upfront inventory costs, delivery fees, and other additional expenses. But here’s the key: the higher returns from wholesale sales can easily offset these costs, putting you in a stronger financial position to invest back into your business.
COUNTING THE COST: A BIBLICAL PERSPECTIVE
Making the leap to the wholesale model isn’t a decision to take lightly. As the Bible reminds us in Luke 14:28, “For which of you, intending to build a tower, sitteth not down first, and counteth the cost, whether he have sufficient to finish it?” This verse underscores the importance of careful planning and consideration before taking on new endeavors.
The wholesale model requires a significant initial investment. You’ll need the financial resources to purchase your first loads of sheds along with a plan to manage additional costs. But with thoughtful preparation and a clear strategy, the rewards can be transformative.
Once those first loads are sold, you’ll begin reaping the benefits of your hard work, allowing you to grow your business, provide better for your family, and create opportunities for others.
THE BIGGER PICTURE: BUILDING A SUSTAINABLE FUTURE
Switching to the wholesale model isn’t just about making more money—it’s about building a sustainable business. A business that can weather challenges, support employees, and contribute to your community.
By increasing your profit margins, you’ll have the financial flexibility to hire additional staff, expand your operations, and invest in tools and resources that make your business more efficient and competitive.
Additionally, the wholesale model encourages a deeper connection with your product. You’re not just a salesperson; you’re an entrepreneur with a vested interest in every shed you sell. This sense of ownership can be incredibly rewarding, both personally and professionally.
TAKING THE FIRST STEP
If you’ve been contemplating a shift to the wholesale model, I encourage you to take the time to evaluate your options. Assess your financial position, research potential suppliers, and create a detailed plan that outlines your goals and strategies. Seek advice from others who have successfully made the transition, and don’t hesitate to ask questions.
I’m here to help. Over the years, I’ve had the privilege of working with countless shed sellers, and I’ve seen firsthand how the wholesale model can transform businesses. If you’re unsure where to start or need guidance, feel free to reach out to me. I’d love to hear your stories and help you navigate this exciting journey.
FINAL THOUGHTS
Your time is valuable, and so is your expertise. Don’t sell yourself short by settling for less than what your efforts deserve. While the consignment model offers simplicity and lower risk, the wholesale model provides an opportunity to maximize your returns and achieve meaningful growth.
With careful planning, determination, and a willingness to embrace challenges, you can take your business to new heights—and create a legacy that extends far beyond the sales lot.
The choice is yours. What’s your time worth?
