| cheapbag214s |
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| Joined: 27 Jun 2013 |
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| Location: England |
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Selling to Retail Stores
"Whether one realizes it or not, selling to department stores can be a boon or a bust . . . heaven or hell.
"But first,[link widoczny dla zalogowanych], we have to define "department stores." They are almost a thing of the past. What we have now are a few chains such as Federated,[link widoczny dla zalogowanych], Belks,[link widoczny dla zalogowanych], Target,[link widoczny dla zalogowanych], May Company,[link widoczny dla zalogowanych], Penny's,[link widoczny dla zalogowanych], Sear's and Montgomery Ward,[link widoczny dla zalogowanych], to name the most prevalent ones. What has taken the place of the many department stores that were in most cities are the "category killers" such as Wal-Mart and Office Depot and Costco, some chain theme stores, and then some catalogue houses.
"Department stores are a trade show for the public. If one goes back in the history of commerce,[link widoczny dla zalogowanych], one would find that they grew to the size they are because the started small and began to expand or buy out other small retailers. It was an economy of size that prompted this growth.
"If one wants to sell the department stores one should be aware that the bigger the chain, the harder bargain they drive. They are, they believe, rightly or wrongly, that they are in the catbird seat. Also, the bigger they are the less open they are to new lines. They look to lines that are well established in their industry or merchandise category. That means that they expect their suppliers to do the advertising and promotion that will make the public aware of the name and/or items.
"A few will look for lines or items that are "blind" in that they have no established, in the publics' minds,[link widoczny dla zalogowanych], suggested retail price. This can come to as much as 15% to 20% of the invoice. The attitude being that if you want to sell them that is the price you pay them for them to pay you.
"Catalogue houses and department stores that have catalogues do it differently. Here,[link widoczny dla zalogowanych], they don't buy stock. They buy,[link widoczny dla zalogowanych], most often,[link widoczny dla zalogowanych], enough to cover emergencies. They expect the vendor to have enough on hand to take care of the mail orders as they come into the mail order office. Besides which,[link widoczny dla zalogowanych], they will expect the vendor to pay for their share of the cost of producing the catalogue.
"This means that anyone jumping into this fray needs to have their "terms and conditions of sale" well spelled out and to make sure that it is part of their price lists. It may even call for several versions of one's prices. Some firms want the price to include such bells and whistles as shrinkage, advertising and freight allowances while others want "net, net, net" prices without all the frills and then they'll take them off as described above. One of any buyer's responsibilities is to spend their firm's money as efficiently as possible . . . so when one sees these things happening,[link widoczny dla zalogowanych], while it may not be pretty,[link widoczny dla zalogowanych], they are just doing their job.
"But, don't despair,[link widoczny dla zalogowanych], selling to retailers is not all bad. It can look rosy. In some communities, one can find a few local or small chain stores, but they are a dying breed. Lastly, while not department stores in the usual sense of the word, there are the small multi-line stores,[link widoczny dla zalogowanych], usually with a theme, that are going into the rejuvenated shopping areas that are bursting on the scene. And then, one shouldn't underestimate the small specialty shops that dot the map. When they are all in the same vicinity they offer among them the same variety that a department store offers the public. Many are looking for the lines that the big stores do not offer as they can't compete . . . some big stores are selling goods for the same as a small retailer retails these goods for. They have had to change their ways of working. It used to be that they would spend the majority of their time with the big chains. The little guys got whatever time was left over. In some cases, reps would use sub-reps to call on the little stores. Well,[link widoczny dla zalogowanych], it ain't that way today. Some big firms such as Wal-Mart say that due to their volume they don't need the rep to call on them and they want the commission usually paid to the rep for themselves. That means that reps have to look for other ways to make money. They do this by two methods: One, call on smaller retailers and call on them more often; two, take on lines that the smaller retailers are looking for.
"So, as a supplier to the retail market, seek out the reps. Ask some stores that might be potential candidates for your line who they believe is the best rep that calls on them. Interview several reps, see what other lines they have that would cause them to call on the same type of firm you believe your goods could go into. They are your best bet for getting into all types of stores both large and small,[link widoczny dla zalogowanych], that is their profession. And,[link widoczny dla zalogowanych], lastly, don't begrudge them the commission you pay them. Without them, you wouldn't have the exposure or sales you're enjoying."
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