how to approach a retailer
DESCRIPTION
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
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
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
• 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
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.
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
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
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
• 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
• 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
• 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
• 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
• 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
• 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
• 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
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
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
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
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
For further information on this subject, please refer to the
following resources:
Costing & Pricing Work
An Introduction to Retail
Preparing to Attend Trade Events
Planning to Sell at Trade Events
How do I protect my ideas / business / product?
Can you give any help with contracts?
Next steps
19/19
Disclaimer: Cultural Enterprise Office is not responsible for any advice or information provided by any external
organisation referenced in this document.