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LETS GET DOWN TO BUSINESS.

Question :
Hi guys, I have a small online shop that ticks along but I think some products that I’d like to push further are ones that people need to see and feel before buying.  I’d love to get these into some stores, but I just don’t know where to start!  Questions going around in my head are: Do I need to have stock first before approaching store buyers (some are still in development but I have samples)? What is a typical wholesale margin? What are the agreements (buying vs commission based)? Are there legal implications that I should be thinking about?  Is there a ‘retail mentor’ out there or are there other resources that I could look at to help guide me through some of these questions?

Question submitted 19/06/20 @ 06:39pm
Industry: Retailing
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  • Hi there.
    You have a lot of fabulous questions but more information is needed to help guide you in the right direction.
    – Do you manufacture the products yourself?
    – What category are the products (soft furnishings, technology, home appliances – you get the picture – that impacts what your wholesale price might be an expectations from retailer on mark-up.
    – Are you going to hire someone to be your agent to go store to store?
    – Are there going to be minimum order quantities and lead times before stores can get products – will they be easy to reorder?
    – Is there much competition in the market?
    – Why would a retail store want to stock your product? What problem do you solve?
    – Will you be providing merchandising support?
    – If you need an environment for customers to touch and feel, will there be an imperatives for the environment? eg. it needs power?

    There are a bunch of considerations before you enter this but it doesn’t ever stop you going and chatting to a few stores and asking them as well. The more conversations you have the better you can craft your offer for them. Depending on your product, many retailers may want to ensure they have exclusivity of some type for the area they operate in – so you need to think about making sure the retailer has the right “fit”.

    Good luck.

    Morning
    Physical retail isn’t the easiest space to be in at the moment, it will depend on what you are selling
    It may simply be a strong social strategy that you need to grow your product on line, as this is where a lot
    of the growth is. Aligning with a retailer that may struggle to pay you in this environment will not be
    helpful for you. I am happy to talk directly with you if you want to reach out annah@strettonclothing.co.nz

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