Retail vs Wholesale
Retail Benefits
Andruszko and Pilkington both enjoy the steadier cash flow involved in retailing as opposed to wholesale. “With wholesale, everything goes out in one week and then you’ve got three months where it might be just re-orders,” says Pilkington. “Retail is constant.” Andruszko agrees, and says that unless you’re extremely vigilant about payment on invoices, as a wholesaler it’s not unusual to spend months waiting for a payment of a couple of hundred dollars.
Neither have any regrets about making the move into retail. Andruszko admits she entered retail reluctantly, having faced many ill-tempered diners during her time in the restaurant business. “I was really dreading getting into retail. Now I love the customers.” She happily admits her products now establish a common ground, which helps. “If you don’t like dogs you’re not going to walk in the door. It’s a totally different environment.”
And in a slight twist, thanks to the new franchise launch, Andruszko finds she is taking on the role of wholesaling again, albeit to her own stores. “I’m actually looking forward to getting back into wholesale with what I know now,” she says. “I feel like I’m coming full circle, because as soon as I sell a franchise I am a wholesaler to the Puppy Phat store. It’s like wholesaling to a family member in a sense. You know they’re not going to burn you.”