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Negotiating with Vendors For A Win-Win Relationship, Part One |  March 27, 2019 (0 comments)

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Omaha, NE--Ideally, retailer/vendor relationships will be a win-win for both sides. In reality, however, that doesn't always happen. Sometimes it's just not the right product, even if it seems like it should be a winner. Or perhaps the retailer was expecting more vendor support to market it or the vendor was expecting more focus on it from the retailer. But better preparation will help maximize the chances for product sales success and a winning partnership between vendor and retailer. Here are two checklists of things to have ready before a vendor meeting. (Image at left: Clarity.fm)

10 pieces of information retailers should prepare prior to meeting with a vendor:

  1. Annual purchases last three calendar years
  2. YTD purchases
  3. GMROI for this vendor for the last three calendar years
  4. Current on-hand inventory from this vendor (total dollar amount and detail)
  5. Inventory detail listing all items on hand over 365 days
  6. Inventory detail listing all items on hand 180-364 days
  7. List of fast fast sellers (sold in less than 30 days) that are currently out of stock
  8. List of top 20 sellers from this vendor (available to members of the Edge Retail Academy through Edge Pulse)
  9. This vendor’s ranking on the Annual KPI (Key Performance Indicator) Report (available to members of the Edge Retail Academy through Edge Pulse)
  10. An open-to-buy number, based on Autopilot and your knowledge of your current overall inventory and financial position.

Checklist of 16 potential offerings to ask for:

  1. Better Price
  2. Better Terms
  3. Memo (to support a new order, to support a new category, to support an advertising program, or to support a special event)
  4. Advertising Support (to support a product launch, to support a specific campaign, for inclusion into a catalog, to support ongoing advertising)
  5. Stock Balancing (both ongoing and one-time help)
  6. Exclusivity
  7. Signage
  8. Display allowance
  9. Employee spiff program/contest
  10. Support for a local charity
  11. Product photos in digital format
  12. Free shipping
  13. Staff training from vendor’s rep
  14. Commitment from vendor to shelf-stock key items
  15. Notification of potential shortages or discontinuations
  16. Trunk show

Next week: Tips for getting special treatments, better deals, and easier negotiations 

The Edge Retail Academy provides customized strategies for retailers and vendors to increase profits, optimize growth, reduce debt, create profitable inventory solutions, build effective teams, and enhance brand loyalty and profitability. The Academy is committed to helping jewelry businesses improve their bottom line while reducing uncertainty and stress. Edge Retail Academy software and business advisors provide real world knowledge and advice, all on a “no-contract” basis.  877-569-8657, ext. 1,  Becka@EdgeRetailAcademy.com  or  www.edgeretailacademy.com

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