10 Wholesale Business Success Stories
A wholesale business involves buying products in large quantities from manufacturers or distributors and selling them to retailers or other businesses in smaller quantities. This business type usually focuses on providing products to businesses rather than individual consumers.
One of the main benefits of starting a wholesale business is purchasing products at a lower price due to the large quantities being purchased. This allows the business to sell the products at a profit to retailers or other businesses.
To run a thriving wholesale business, it is important to have a strong understanding of the market and the products being sold. Building solid relationships with manufacturers and distributors is essential to secure the best prices for the products sold. Additionally, it is important to have a solid marketing and sales strategy to reach potential customers and secure orders.
Another critical aspect of running a successful wholesale business is proper inventory management. It is important to understand accurately the demand for the products being sold and a system in place to track inventory levels and reorder products as needed.
Overall, a wholesale business can be lucrative for entrepreneurs who can effectively source products, build strong relationships with customers, and properly manage their inventory.
In this list, you'll find real-world wholesale business success stories and very profitable examples of starting a wholesale business that makes money.
1. Scrubblade Inc. ($3.9M/year)
Billy Westbrook, the founder of Scrubblade, came up with the idea for his business when a bug hit his windshield and he couldn't remove the smear with regular wiper blades. He sketched out the design for Scrubblade the next morning and eventually got a prototype made. Through personal connections and networking, he secured an investor and launched the business, focusing on the HD trucking industry. Scrubblade is now the #1 blade sold at retail in that industry.
How much money it makes: $3.9M/year
How much did it cost to start: $75K
How many people on the team: 6
Scrubbleblade is a windshield wiper company that sells #1 in the H.D. trucking industry and was awarded wiper blade of the year by Frost & Sullivan in 2018; they focus on a specific target customer while offering subscriptions and utilizing social media.
2. Beyond Botanicals ($3.6M/year)
Mark Maher, co-founder of Beyond Botanicals, had a background in sales and a passion for health and education. When a client asked if they could make CBD oil products, Mark dove into researching CBD's potential benefits and knew it was a product that could truly make a difference. Alongside his co-founder, Jake Firmender, they started their own CBD business, focusing on providing Private Label CBD services to other startups. Despite facing challenges in payment processing and advertising, they quickly gained traction in the industry and achieved impressive revenue growth, reaching over $3M in annual sales.
How much money it makes: $3.6M/year
How much did it cost to start: $7K
How many people on the team: 8
Beyond Botanicals, a CBD manufacturing company in the USA, focused on private label CBD, wholesale CBD, and retail CBD products, started with a $7,000 loan and rose to over $3M in annual revenue in just three years, largely due to good taste as a competitive advantage and traditional marketing approaches.
3. SmartyPits ($2.2M/year)
Stacia Guzzo, the founder of SmartyPits Deodorant, was inspired to create her aluminum-free deodorant after her mother's battle with aggressive breast cancer. After learning about the links between aluminum and breast cancer, she began experimenting with creating her own skincare products, which eventually led to the creation of SmartyPits. In just 21 months, SmartyPits grew from making under $100,000 in 2016 to over $500,000 by the end of Q3 in 2018.
How much money it makes: $2.2M/year
How many people on the team: 13
SmartyPits is a fast-growing deodorant company that has gone from making under $100,000 in 2016 to making over $500,000 by Q3 2018, after the founder's experience as a breast cancer survivor led to developing an aluminum-free deodorant.
4. Upper Limits ($1.44M/year)
Matthieu Fortin, the CEO of Upper Limits, started the company in 2013 with the goal of creating a place where medical cannabis patients could find education and guidance. Inspired by his personal experience with the health benefits of vaporization, he saw an opportunity to provide new product technology education and fill a gap in the market. With an initial investment of $30,000, he bootstrapped the business and focused on sourcing high-quality products and building relationships with vendors and customers. Word of mouth and a strong online presence, including Google tools, have played a significant role in attracting and retaining customers for Upper Limits.
How much money it makes: $1.44M/year
How much did it cost to start: $30K
How many people on the team: 7
Upper Limits, a hybrid brick-and-mortar/e-commerce company located in Springfield, IL that sells dispensary, smoke shop products, and custom glass pipes, has succeeded in generating 366% greater sales revenue than their industry peers by facing challenges head-on and diversifying their revenue streams.
5. Ka-Pop! Snacks ($1.2M/year)
Dustin Finkel, the creator and CEO of Ka-Pop! and Awakened Foods, came up with the idea for his snack business after realizing the lack of genuinely authentic and delicious snacks in the market. As a certified personal trainer and nutritionist, Finkel wanted to create snacks that were both healthy and tasty, leading him to develop the Ka-Pop! line using 100% Ancient Grains and natural seasonings. Since its launch, the business has experienced impressive growth, with over 300% annual growth and projected annual sales of nearly $10 million by the end of 2021.
How much money it makes: $1.2M/year
How many people on the team: 50
Ka-Pop! is an Ancient Grain snack company that has grown over 300% per year, reaching nearly $10 million in annual sales by 2021, through innovation, passion, demos, social media, TV appearances, and driving relationships with retailer partners.
6. Rwanda Bean Coffee ($1.08M/year)
Mike Mwenedata, a Rwandan immigrant, started Rwanda Bean Coffee Company after realizing the potential value of Rwandan coffee and the need to support coffee farmers in his home country. By reinvesting 50% of their profits back into the farming communities, Rwanda Bean has grown rapidly, expanding from 10 lbs of coffee to a container of 40,000 lbs and increasing revenue from under $3,000 to over $45,000 per month in less than a year.
How much money it makes: $1.08M/year
How many people on the team: 20
Rwandan immigrant Mike Mwenedata co-founded Rwanda Bean Coffee Company, which increased revenue from under $3,000 per month to over $45k per month in less than one year, by sourcing and roasting single-origin coffee from Rwanda and investing 50% of the profits back into the farm communities.
7. MamaSuds ($420K/year)
Michelle Smith, founder and CEO of MamaSuds, came up with the idea for her business after researching the harmful ingredients in household products. She taught herself how to make liquid soap and formulated a laundry soap that would clean her daughter's cloth diapers. After receiving positive feedback from friends and family, she decided to turn her passion into a business. MamaSuds has since experienced incredible growth, with an average revenue of $18k a month, and is now sold in all 50 states and over 9 countries.
How much money it makes: $420K/year
How much did it cost to start: $395
How many people on the team: 1
MamaSuds, a natural cleaning and soap company created by Michelle Smith, has an impressive monthly revenue of $18k, has sold products to 9 countries and all 50 US states, and has just undergone a rebrand that contributed to significant traffic growth.
8. The Good Scoop ($192K/year)
Stephen Layton, one of the founding members of The Good Scoop, came up with the idea for his artisan ice cream business after visiting Salt & Straw in Portland and realizing the potential for a successful ice cream shop in the Central Valley of California. Inspired by the farm-to-fork movement in Sacramento, Layton wanted to bring a fresh perspective to the classic ice cream parlor. By utilizing fresh, local, and all-natural ingredients, The Good Scoop has attracted and retained customers through their unique flavors and commitment to quality.
How much money it makes: $192K/year
How many people on the team: 1
The Good Scoop, a California-based artisanal ice cream shop, started with a small Italian countertop ice cream maker and now has a production facility, wholesaling to various venues, offering frequent scooper programs, and using Instagram as their primary advertising platform.
9. GoldFi ($144K/year)
Gil Marcondes, the founder of GoldFi, came up with the idea for his online jewelry business after struggling with the performance of his brick-and-mortar store. During the COVID-19 pandemic, he met a friend who encouraged him to invest in the pure online business model. Since launching on the Shopify platform, GoldFi has seen success, with an average revenue of $22K in the last three months and an 88% increase in sales from the previous month.
How much money it makes: $144K/year
How much did it cost to start: $7K
How many people on the team: 3
GoldFi, an online jewelry business founded by Gil Marcondes, has received an average of 463 sessions per day in the last three months, generating an average revenue of $22K, and has seen sales growth quadruple in the last six months.
10. TERRA ($30K/year)
Dianna, the founder of TERRA, started her business with less than $100 and in just 8 months, she has sold her eco-friendly candles to dream companies like Greetabl and Kinder Beauty. With a background in graphic design and a passion for physical crafts, Dianna found inspiration while traveling and decided to dive into candle making upon returning home to St. Louis. She took a risk, put up what she could, and successfully launched her candle business, proving that starting with limited resources is possible.
How much money it makes: $30K/year
How much did it cost to start: $100
How many people on the team: 1
Find out how a candle brand started with less than $100 and, in just eight months, achieved $5,000 in revenue, landed deals with major companies such as Greetabl and Kinder Beauty, and enjoyed a 86% profit margin thanks to its eco-friendly, handmade, and affordable candle products.
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