To some extent, you could say that every type of business is thriving in Texas since the state has enjoyed something of a reputation for being very friendly to investors. That being said, wholesalers have done much better than average in Texas for some time. There are three primary reasons why wholesalers inside Texas continue to do so well in spite of all the challenges managers face today.
1. Good Climate
The entirety of Texas lies inside the so-called Sun Belt, which has long been home to countless manufacturers and other types of businesses that are looking for good weather. Winters tend to be mild in much of the state, which is good news for anybody who has to keep shipments coming in at all times of the year. Wholesalers who sell outside of Texas but keep their physical plant inside of it have traditionally been able to garner a good percentage of sales during the winter months since many other northern wholesalers have a tendency to reduce their operations during that time. In a few instances, that’s actually translated into very little competition for stateside wholesale businesses that don’t mind marketing their products all year round.
2. Central Location
Wholesalers who are located in New England states might have to tell their customers to wait a long time if they’re ordering from the Los Angeles area. The same goes for customers in Seattle doing business with wholesalers in Miami. Texas, however, is located in the center of the country so wholesalers can get goods out to their destinations with very little difficulty. Organizations that distribute wholesale products to supermarkets have leveraged this unique situation to help people all across the United States. Those doing international business with Mexico can also take advantage of the fact that the state shares a border with that nation. It’s right on the water as well, thus making worldwide shipments easier than they would be in a landlocked state. Trucking and railroad connections have helped to make it even easier for wholesalers to send their goods to worldwide destinations.
3. Attractive Tax Structure
Texans pay no state income taxes, which makes the state attractive to those who want to start a business. While the lack of income tax may be made up by imposing other fees, the state’s economic environment is generally conducive to doing business. Some commentators have talked about how the large number of online firms in the state of Texas essentially constitute a Silicon Prairie that could rival business setups in much of the rest of the country. That’s really helped wholesalers who sell both online as well as in person, regardless of how much business they ultimately do outside of the state of Texas.
Every successful business thrives because of the people behind it, however. Wholesalers that do well in Texas don’t just do good because of the state’s unique attributes. They also succeed because of all the hard work put in by their staff and crew. While the wholesale industry appeals to consumers across the country, it has a special appeal to consumers in Texas which is shown in the industry’s continued growth rate.
