By Hello!Lucky
Working
with retailers is a great way to expand your creative business, as
retailers will make larger purchases than individuals and can result in
long-term relationships (e.g. re-orders!) that don't require too much
effort to maintain.
How do you get your products into retail stores? Here are some tips!
* Successful retailers have a strong point of view and buy what they love
- Visit their stores to understand their taste and what sells
- Only send them samples of products that are a good fit for their store
* Don't be afraid of retailers: you're on the same side!
-
While it may seem intimidating to approach retailers at first, remember
that they are small business owners just like you. You're both on the
same side, working together to bring great products and a great shopping
experience to consumers. Don't be desperate and realize that you have
as much power as they do. If your product catches on, retailers will be
clamoring and even competing with each other to carry your product --
they need you as much as you need them.
* Retailing is about relationships
-
Boutique retailing is all about relationships. Retailers love to know
the people who make their products so they have a story to pass on to
their customer that makes shopping at their store a more unique and
personal experience. Do you best to get to know the retailer personally;
often small boutiques are slow during weekdays - make an appointment to
stop by and drop off a sample and chat with the owner or store manager.
Types of questions you might ask: what are customers looking for /
what products are popular? Are most of your customers tourists or
local? Are their any gaps in your assortment that I could consider in
developing new products? Be careful not to sell the same products to
retailers who are competing with each other directly, e.g. on the same
block; instead, if both retailers want your product steer them towards
different items in your line to minimize overlap -- after all, in order
for you to succeed, they need to succeed!
* Retailers always want what's new
- Keep your product assortment fresh and when you contact your retailers, always be ready to show them "what's new."
* Retailers need reliability and variety
- Retailers are
small businesses and are often just barely making it financially. They
may be reluctant to take a risk on a new vendor who might not deliver
orders on-time or go out of business. Be courteous and professional in
all your communication, and make sure orders are always delivered on
time. Provide references if they seem hesitant about taking a risk on a
small business.
* Get to know the retail buying calendar
-
Most retailers buy at least 6 months ahead of the next season, so for
seasonal items be sure that your products are ready well in advance. If
you have a Christmas item that won't be available until October, don't
bother releasing it -- most retailers will have already planned their
purchases and maxed out their budgets. Save it until next year when you
can reach buyers in the Spring / Summer and take advantage of their
excitement of seeing something new.
* Get a sales rep
- Sales reps typically
represent 10 - 20 different manufacturers in a geographic region and
take a 15% cut of sales. They have deep, long-standing relationships
with retailers, so having a rep is a great way to increase your
distribution quickly. To find a sales rep, find out who reps lines that
are similar to yours and contact them. Be personal, courteous and send
them samples (no impersonal form e-mails!). Show that you are eager,
earnest and understand the other lines they carry. Reps are often
willing to take a chance on one or two very small lines to add interest
and variety to the assortment of lines they represent, but as with
retailers, it's all about relationships.
* Exhibit at a trade show
- Although trade
shows are declining in importance due to the availability of most
products online, they are still a great way to meet store owners and
build relationships. Before exhibiting at a show, visit it and "walk"
the show to understand the different "neighborhoods" and where you might
fit in, and to get ideas for booth design and product trends.
- When it comes to exhibiting at a show, keep it simple and keep
costs low! If you're just starting out, consider forming a co-op with
complementary vendors and sharing a booth space.
* Approach big retailers with caution
- While it
may seem tempting to go after big chain retailers due to the volume of
their orders, be aware that they often have steep discount requirements,
onerous shipping and labeling requirements (which, if you don't follow
them, result in heavy fines and could completely erode your profit
margins), and may even have expensive testing requirements (e.g. if your
product can be classified as a "children's product"). Also note that
large retailers may decide to cancel an order if it's not fulfilled on
time or for any other reason, meaning that you could take a big loss if
you have investing money in creating inventory to fulfill their demand.
While it can be great for top-line sales and brand awareness, the profit
margins can be extremely slim, not to mention the stress of
comprehending a 100-page vendor manual!
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