how to approach a retailer

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A Cultural Enterprise Office guide providing an overview of the process of selling your designs and products to a retailer. It looks at what to prepare for an appointment and the best way to approach a retailer.

TRANSCRIPT

Page 1: How to Approach a Retailer
Page 2: How to Approach a Retailer

This guide provides an overview of the process of selling your designs

and products to a retailer. It looks at the best way to approach a retailer

including:

Preparing for an appointment

Seasonality

Approaching a buyer for an appointment

What the retailer expects from the designer / seller

During the appointment / negotiation

The importance of maintaining the relationship

You may also wish to look at An Introduction to Retail which offers

information on the benefits of selling your work to retailers.

1/19

Page 3: How to Approach a Retailer

Before approaching a buyer, it is important to carry out research into

the company’s customer base and profile to decide if this will be

relevant for your product. It is helpful to visit their shop / outlets and

to look at who is shopping and purchasing there.

• Check that their customer is who you want to be selling to /

associated with.

• Check that the presentation of the stock is in keeping with how

you want your own product to be displayed.

Preparing for an appointment

2/19

Page 4: How to Approach a Retailer

• Are the brands that they sell ones with which you would like

yours to be associated?

• Does the store environment suit your product image?

• Do the price points fit with your own price structure?

• Is the location of the outlet right for your customer?

• Is the retailer discounting brand names and diluting the image of

the brands they stock?

3/19

Page 5: How to Approach a Retailer

4/19

If the image and presentation of the shop doesn’t suit your brand

criteria, it may be better to turn down the opportunity of short-term

sales and protect your brand’s image by selling through a more

appropriate retailer.

Page 6: How to Approach a Retailer

5/19

It is important to understand retail seasonality. This can be different

for each retailer depending on where / what they retail. Generally, the

peak retail selling period is in the months leading up to Christmas

from September to December. Some retailers can expect to take up

to 75% of their sales within this period. However, if the shop is

situated within a visitor centre / museum then summer may be their

peak season, when tourist / visitor numbers are at their highest.

Don’t be afraid to approach a sales assistant on the shop floor for

advice. It is helpful to know when the retailer may be quieter as this is

often the best time to approach them for a sales appointment.

Seasonality

Page 7: How to Approach a Retailer

6/19

• Find out the buyer’s name and position. The staff on the shop

floor can be a good source of information.

• It is best to make initial contact by either telephone, email or

letter. Do not be surprised if you do not hear back from them

immediately. Buyers tend to be busy people and often do not

respond to emails and letters. It can often pay to be persistent

by telephoning again and / or resending emails.

• Present yourself as a business, not as an individual. It is

important that you present a professional image representing

your brand when requesting a meeting.

Approaching a buyer for an appointment

Page 8: How to Approach a Retailer

7/19

Once you have made an appointment with a buyer, it is important to

be well prepared for the meeting. Take time to prepare and be ready

to include the following in your presentation:

What the retailer expects from the designer / seller

Page 9: How to Approach a Retailer

• Some information about you and your product / brand – How

you got started or where you take your inspiration from and

perhaps even what your aspirations are for your brand.

• Design insight – What was the inspiration for the product? This

is a chance for you to sell your product idea and excite the buyer

about your design. Highlight what makes your product unique.

Remember that the customer is usually looking for something

different.

• Product name / reference number – Some form of reference to

make identification easier when communicating after the meeting

or for order placement.

Background information on your product

8/19

Page 10: How to Approach a Retailer

• Unit cost i.e. the trade (wholesale) price. This is the price at

which you sell to the trade. This will be the cost of making, plus

your profit margin, but will not include a retail mark up.

• The retail price is the price that you sell direct to the public i.e.

the price on display in shops and galleries. The retailer will add a

mark-up to cover the costs incurred when selling the work; which

can be between 100% and 250%, or even more. Try to keep your

retail price as constant as possible, so as to maintain a steady

market value for your work.

• If you are already retailing the product, be clear about what the

retail price is.

Information on pricing

9/19

Page 11: How to Approach a Retailer

• Minimum order quantities – How much do they need to order

to meet your minimum order requirements? In order to build the

relationship with the buyer, you may have to trade without

minimums giving them a chance to test your product in their

store.

• Discounts for larger quantities. It may be beneficial for you to

offer a discount for larger orders. For example: free delivery on

orders over £200.

Information on ordering

10/19

Page 12: How to Approach a Retailer

• Stock position – Is there stock available for a quick delivery of

the item?

• Lead time for ordering – If there is no stock currently available,

what is the delivery lead time? In other words, how long will it

take you to deliver after they confirm their order?

• Is the product sold anywhere else? If so – where? Be honest

about where else the product is currently retailing.

Information on ordering continued

11/19

Page 13: How to Approach a Retailer

• Production / manufacturing – Some general information about

how and where the product is made including production

methods, materials used, sustainability, etc.

• Are there other options of the product available? For

example, in different prints, finishes, designs or colour ways?

These should be shown to the buyer, preferably clearly

presented in a folder highlighting the options available

• Samples – A perfect example of what the product will look like

when delivered preferably made by the same manufacturer that

will be delivering the production

Further information on your product

12/19

Page 14: How to Approach a Retailer

• Colour samples – samples illustrating colour way options

• Point of Sale information & packaging – Information showing

what the point of sale material (if there is any) and packaging /

labelling will look like. This can include samples, illustrations or

photos which provide a visual reference. Remember however

that if the buyer places an order that they may prefer to have

your product presented in their packaging and with their labels

• What are your terms including price, lead times, payment

details, and quantities?

Further information on your product continued

13/19

Page 15: How to Approach a Retailer

• Know your bottom line in pricing – don’t go beneath it, and

try not to be bullied or pressured into agreeing terms of which

you are unsure. If you are not sure about something, ask for

time to get back to the buyer.

• Exclusivity – increasingly buyers are looking for exclusivity of

designs / products. The seller should expect a larger quantity in

return to offset any loss in additional sales they could gain by

selling elsewhere. It is important to consider this carefully. One

option could be to produce a new range specifically for the

client or to modify the existing design slightly and offer

exclusivity. It may also be possible to offer the same design but

in an exclusive colour way, finish or print design.

During the sales appointment / negotiation

14/19

Page 16: How to Approach a Retailer

If the buyer is placing an order, it is important to agree all terms

including

• price

• lead times

• payment details

• delivery charges including in transit insurance

• returns policies

• quantities

in writing and preferably sign a contract 15/19

Page 17: How to Approach a Retailer

When selling to a company, try to deal with the same person and

develop a good working relationship with the buyer, understanding

their needs.

Follow up the meeting with a letter to the buyer confirming what

was agreed, and ask him / her to acknowledge receipt of that letter

in writing.

If the buyer does not place an order after the meeting, do not be

afraid to ask for feedback. It will provide you with valuable insight

into how you can perhaps modify your product / prices to suit them

going forward. It is also an opportunity to keep the dialogue with the

buyer open.

The importance of maintaining a good relationship

16/19

Page 18: How to Approach a Retailer

Keep in contact with the buyer – if a lead-time is 3 months, give the

buyer regular progress updates. If you are having problems meeting

the deadline, tell the buyer immediately; do not stick your head in the

sand. Try to give the buyer solutions rather than problems.

Deliver the correct quantity on time – there are often penalties for

late delivery. It is standard practice to enclose a detailed delivery note

to be signed on delivery.

17/19

Page 19: How to Approach a Retailer

Ensure quality control of orders going out, especially if working

with subcontractors and delegating production processes.

Contact the buyer after delivery to check that everything is fine.

18/19

Page 21: How to Approach a Retailer

Disclaimer: Cultural Enterprise Office is not responsible for any advice or information provided by any external

organisation referenced in this document.