I think Allen has the point here.
I believe many of those who sell their wares or have intent to need to take heed of a few points.
1) Recognise the difference between wholesale and retail.
2) Understand the needs and wants of the two business models.
Do this fundamental homework first.
If you wish to be treated like a pro you need to treat the customer like a pro.
So examine this situation you faced and listen to what has been told to you buy the store owner. They actually telling you their need.
A retailer has a key metric they need to monitor and meet for their business to be successful that is sales per square ft.
They also need to meet a sweet spot of average ticket price that fits within the range of the demographic of the clients that shop their store.
So whats this mean to you? It means before you go andmake something and then expect them to stock and sell it you need to do research within their store and engage in a discussion with them.
You are acting as the manufacturer and wholesaler.
The wholesaler part of you needs to ensure the quality you as the factory supply is consistent but most important the wholesaler needs to have stock on hand to meet the retailers orders.
Believe it or not price of the product while important is actually less important than fulfillment.
This is where the previous guy failed and they told you this.
This is what happens when we go and get a sale on the basis of a low price "just to make ends meet" and then it becomes unattractive to fullfill the orders for the small amount of net return. So then after the retailer has used precious space and just got the clients aware of the product they now cannot get it when they need it.
Try put yourself in this retailers shoes and what he feels he has done to his clients and his reputation in the process.
He has not only lost a sale for space he set aside which is costing him in his bottom line and lets remember he only has his store to make it and when he has lost time in retail you dont get it back. So say i miss Easter sales then thats it till next year.
This is a key part to understanding who you are selling to and what their issues are.
Having a "special buy" one off listing of a product is one thing. They can use a product like that as a door crasher promotional loss leader.
But a line item they gonna carry, they need to know they can get reliable consistent supply. They dont have space to stock all they need and they got enough cash tied up in all their existing stock so they will not want to carry more of a item than the sales history shows. For this reason retailers will buy from a wholesaler even if at times its not the cheapest supplier.
Then comes the issue of how they present it in the store. This they refer to as merchandising. So have you considered how what ever it is will be displayed? How is it protected from handling as in damage and how the in store stock will be stored within the space they can or may make available.?
Sorry i can go on and on. you gotta tell me if you want more.
I like to keep coming back to a key point in sales.
Put yourself in the shoes of the person you are selling to.
You need to understand them and their clients. When you do then you will find you can present your product to them in a manner where you push the right buttons and in the process of doing so also without needing to actually do it, subtly demonstrate that you understand and relate to their world.
They dont fall in love with your product and hard work like you do. They not caught up in the wood choice finish or joints.
To them its a product the question is what price can they sell it for and what are they paying for it. Does it seem like something that fits their clients and if so what sort of percentage of them. How many will they move per retail period and how does this stack up with the other items in the store. How much space will it take both for it and its display means. How does the whole equation stack up?
Retail is a tough business. They gotta be tough to survive they selling to nutjobs like me that go to crazy extents to avoid paying an extra sent even though i can afford it.
What happens to returns, what warranties are you offering, how long do they have to wait to get resupply when stock is out?
So you see the deal is not as simple as we would like. Mr. Retailer will you stock my product and pay me for it.
So now i tell clients this is where you put your cap on that says "marketing manager" in your business.
Your job now is to mitigate the problems you have encountered and advise the "general manager" and " sales manager" and "production manager" of how you plan to do this.
One idea that may work is to tackle the issues presented by this retailer as obstacles to buying from you.
First issue is the continuity of supply and availability of additional stock.
Well you have no history with him and no significant references right now that he could call. What you could do if you up to it is offer him a kind of bond. This would be similar to what is often required for a major tender, often one needs to post a bid bond.
Also tackle some of the other issues of merchandising and returns.
Advise him of the stock you have on hand and your undertaking in respect of your offer in a time sense for resupply.
Take him an idea for a promotion using your product if its possible.
What you basically want to do is go back and demonstrate you actually are ready equipped and able and have solutions on hand to meet his requirements.
Do that and if the product does fit, then lets hear his next objection to the sale.
Dont forget. This is not just about getting no's its also possible its a negotiation. You gotta put some more cards on the table with him to be able to make the pot more attractive
Dont ....dont do the consignment stock part. I dont believe in it.
Consignment stock is speculation. If you wish to speculate do it elsewhere where you got a better chance of making money.
Think about what a retailer that takes consignment goods is telling you.
.......i dont know my clients or my market or my price points.
........i dont have financial means to carry stock....
........i may not end up paying you given i might need to subvert your payment to pay the rent or staff or utilities.
Lets go back to retail / wholesale 101.
........whilst the cards are in their hands right now....you cant let the balance stay that way throughout your relationship.
So you must believe your product and brand has and will grow in value as more become aware of it.
You need the retailer but he needs you too. You are giving him the ability to make the margin between you and the retail consumer.
There are terms associated with that too.
When you go accepting consignment straight away you have said you agree with them you dont think there is value in your product either so lets roll the dice and see what the consumer does and live with the way the dice fall.
Is that what you want or believe? I dont think so .....
Apologies for the long post. I thought more than just you could benefit from the info and wanted to broaden it out.
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