Santa Clara has long been known in the industry for having the largest inventory of any wholesaler—our customers can always get the products they need for their businesses. However, we prefer to think of you not as “customers” but instead, as partners. Our relationship with our partners is symbiotic; we believe that when our partners achieve success in the industry, so do we. Therefore, we always want to help our partners improve their businesses by maximizing their profit potential.

Retailers are often overly concerned with finding ways to increase revenue and foot traffic, but that’s not the only way to improve your business. Sometimes a business might face stagnant growth in revenue, therefore it’s important to maximize your profit margin at all times. And how does a retailer or wholesaler maximize profit margins?

1)     Focus on buying brands that have larger profit margins than others. Products with high turn rates are always something every retailer is looking for, but high-margin items should also be the focus. There are some brands that only offer 35% profit when we compare the wholesale price to the MSRP. Meanwhile, there other brands that offer 50% or more. If an item has a slow turn rate and a lower profit margin, then that item might not be the right brand for your business.

2)     Discounts or deals made through our catalog and website deals offer our partners great opportunities to increase their margins. Often, our partners look at discounts as a method of saving money, but we prefer to look at these deals as a method of making money. If a box of cigars has a profit margin of 50%, and I am getting a 15% discount, then I am actually increasing my profit margin to 57.5%, and increased profit margins can make up for stagnant revenue.

3)     Promotional goods are 100% profit. In our catalog, we often offer special deals that that feature free cutters, lighters, ashtrays, and other goods. Usually, most of our partners will give those items away to their customers free of charge. However, some partners choose to sell those goods to their customers. Why? If you choose to sell a free ashtray for $30.00, then you just made your business 100% profit on that transaction. Every time you sell one of those free products, you’re increasing the overall profit margins of your business.

We hope this information will help you, our partners, to become even more successful. We thank you for putting your trust in us as a vendor, and we’re confident that we can provide support that helps you to continue to grow your business.