Running a Wholesaler (Thok) Business: Credit, Stock and Customers

A thok, or wholesale, business sits between suppliers and retailers. It buys in volume, breaks bulk into smaller lots, sells to many shops and carries credit on both sides. Margins per unit are thin, so profit depends on turnover, tight credit and careful stock. Most thok businesses start with notebooks and phone calls. That works until the customer list, the number of products and the balances grow beyond what a person can hold in their head.

The four numbers that matter

1. Stock on hand by product and batch.
2. Money owed to you by each customer.
3. Money you owe suppliers.
4. Sales and returns by product.

Everything else is detail. A system that gives you these four numbers daily lets you make faster, calmer decisions.

Customer segmentation

Not all buyers are equal. Group them to match terms and attention:

Group	Typical treatment
Large regular retailers	Standard terms, scheduled visits or calls
Small shops	Smaller packs, shorter credit, cash where possible
Sub-wholesalers	Volume pricing, tighter limits
Institutional buyers	Quotation-based pricing, invoice-based payment

Write the terms down. Unwritten terms become disputes.

Price tiers

Create one price list per group. Add a customer-specific override only when there is a reason, and note why. Review prices when supplier costs change, and update in one place so the counter staff, phone orders and field staff all see the same price.

Credit control

1. Set a limit per customer.
2. Record the due date at dispatch.
3. Review the aging statement every week.
4. Visit or call customers with older balances.
5. Hold new orders when balances pass the limit unless a manager approves.
6. Record every payment with its mode and reference.

Further reading: how to collect payments on time.

Stock discipline

• Receive supplier goods against an order, noting batch and expiry.
• Sell oldest batches first.
• Watch low-stock levels and reorder before running out.
• Do regular counts; see how to run a physical stock count.
• Review slow sellers monthly; see dead and slow-moving stock.

Returns

Returns are normal in wholesale: damaged goods, wrong items, expired stock. Record each with a reason, and decide whether it goes back on the shelf, back to the supplier or is written off. A credit note should follow the return so the customer's balance is correct.

How to run it in gamitrack

1. Add customers as parties with type, location and credit notes; internal notes are never visible to dealers.
2. Set price lists by type with per-customer overrides.
3. Add products and SKUs with categories, weights where relevant and batches with expiry.
4. Receive stock with stock movements into your branch; movements are append-only so history is trustworthy.
5. Take orders from the counter, phone or field; orders are priced automatically and VAT applies only on taxable lines.
6. Invoice with gap-free IRD-style numbering and print.
7. Record payments (cash, eSewa, Khalti, Fonepay, bank, cheque) with FIFO allocation and advances.
8. Watch the ledger for statements and aging per customer.
9. Process returns into the branch with a credit note.
10. Monitor stock. Low-stock and expiry views help you reorder and clear.

Building-material and agro-input wholesalers can start from building materials and agro inputs.

A hypothetical example

Imagine Example Traders (an invented name), a thok shop serving forty small retailers. The owner notices cash is tight despite busy days. Reviewing the aging statement, she finds a few accounts well past their usual terms and a stock list full of slow sellers. She sets limits, calls the oldest balances, and moves two slow products into a discounted bundle. Within weeks she can see the cash position improving because the decisions are based on a list, not a feeling.

Daily routine for a wholesaler

• Morning: check low stock and today's expected deliveries.
• Midday: review new orders and credit holds.
• Evening: reconcile payments received and cash in hand.
• Weekly: aging review and supplier orders.
• Monthly: stock count and slow-seller review.

Common mistakes

• Giving credit without limits.
• Pricing from memory.
• Mixing batches so oldest stock is forgotten.
• Delaying returns paperwork.
• Not separating cash and credit sales in records.

Moving from notebooks to a system without disruption

Changing how a busy wholesale shop records its business is risky if done all at once. A gentler path:

1. Load customers and products first. Enter your top customers, with their balances, and your top products, with current stock.
2. Run both systems for a short time. Book orders in the new system while keeping the notebook as a backup.
3. Start with invoices and payments. These give you the aging view quickly.
4. Add stock movements. Record receipts and sales so levels are live.
5. Retire the notebook when balances and stock agree for a couple of weeks.

Handling counter staff and phone orders

Counter staff and phone-order takers are your front line. Give them a simple rule: nothing leaves the shop without an order, and every order shows the price from the price list. If someone wants a different price, a manager approves it and the override is recorded. That one rule removes most price arguments and most missing sales.

Supplier side

Do not forget the money you owe. Keep a note of each supplier's terms and due dates, and plan cash so payments and collections line up. Wholesalers get into difficulty when collections slip while supplier dues stay fixed. A weekly cash view, even a simple one, helps you decide which collections to chase first.

Weekly cash view

Each week, write down three numbers: money expected from customers this week, money due to suppliers this week, and cash on hand. If the first is smaller than the second, decide early which payments to move and which collections to push.

Next step

Start by loading your customers and products, then run the weekly aging review. Plans are listed on the pricing page.