By Edge Retail Academy. Published in Centurion Jewelry.
Omaha, NE--Ideally, retailer/vendor relationships will be a win-win for both sides. In reality, however, that doesn't always happen. Sometimes it's just not the right product, even if it seems like it should be a winner. Or perhaps the retailer was expecting more vendor support to market it or the vendor was expecting more focus on it from the retailer. But better preparation will help maximize the chances for product sales success and a winning partnership between vendor and retailer. Here are two checklists of things to have ready before a vendor meeting. (Image at left: Clarity.fm)
10 pieces of information retailers should prepare prior to meeting with a vendor:
1. Annual purchases last three calendar years
2. YTD purchases
3. GMROI for this vendor for the last three calendar years
4. Current on-hand inventory from this vendor (total dollar amount and detail)
5. Inventory detail listing all items on hand over 365 days
6. Inventory detail listing all items on hand 180-364 days
7. List of fast fast sellers (sold in less than 30 days) that are currently out of stock
8. List of top 20 sellers from this vendor (available to members of the Edge Retail 9. Academy through Edge Pulse)
9. This vendor’s ranking on the Annual KPI (Key Performance Indicator) Report (available to members of the Edge Retail Academy through Edge Pulse)
10. An open-to-buy number, based on Autopilot and your knowledge of your current overall inventory and financial position.
Checklist of 16 potential offerings to ask for:
Better Price
2. Better Terms
3. Memo (to support a new order, to support a new category, to support an advertising program, or to support a special event)
4. Advertising Support (to support a product launch, to support a specific campaign, for inclusion into a catalog, to support ongoing advertising)
5. Stock Balancing (both ongoing and one-time help)
6. Exclusivity
7. Signage
8. Display allowance
9. Employee spiff program/contest
10.Support for a local charity
11. Product photos in digital format
12. Free shipping
13. Staff training from vendor’s rep
14. Commitment from vendor to shelf-stock key items
15. Notification of potential shortages or discontinuations
16. Trunk show
10 questions a retailer can ask for more vendor support:
1. I am interested in increasing our purchases from your Company. What can you do to help me accomplish that objective?
2. You know I also buy from XYZ Manufacturing. What could you do for me if I agreed to shift my XYZ Open-to-Buy dollars to you?
3. I have always gotten my (channel bands, diamond studs, plain bands) from XYZ. What could you do to help me switch that category to you?
4. I’m going to start sending postcards to my customers featuring specific items. Could I get some advertising help if I feature products from you?
5. I intend to buy less from most of my vendors this Fall, as I’m completely over inventoried. If I keep you at last year’s purchase level, can you help me with (pick from the 16 things to ask for)?
6. We know from historical experience that this Showcase is the best spot in our store. Can you help us with (memo/price break /terms/etc.) if we devote space in that Showcase to your line?
7. If we place an order for (X Amount), can we receive a corresponding amount on memo for the Holidays?
8. If I put your key items on (Autopilot/Trickle) so that they are reordered daily, can I get a (price break /terms/shelf-stock guarantee/better stock balancing)?
9. If I agree to payment upon receipt, can I get a better discount?
10. I know business is tough. If I agree to place my order today, what can you do for me?
10 strategies that can help in difficult negotiations:
1. Simply ask, “Why so much?” (and flinch.)
2. Ask for more than you expect to get.
3. Say “You’ll have to do better than that,” and then stop talking.
4. Adopt a mindset that you are prepared to walk away.
5. Take your time. Never rush to buy.
6. Occasionally mention the name of the competition, and sympathize with a bad economy.
7. Talk and think long term, and show your potential to become an important client.
8. Always tell the truth.
9. Remind the vendor that you pay on time--and do it!
10. Have an alternate vendor in mind that might be able to meet your needs if necessary.
The Edge Retail Academy provides customized strategies for retailers and vendors to increase profits, optimize growth, reduce debt, create profitable inventory solutions, build effective teams, and enhance brand loyalty and profitability. The Academy is committed to helping jewelry businesses improve their bottom line while reducing uncertainty and stress. Edge Retail Academy software and business advisors provide real world knowledge and advice, all on a “no-contract” basis. 877-569-8657, ext. 1, Becka@EdgeRetailAcademy.com or www.edgeretailacademy.com
Published in Centurion Jewelry.