Help needed re: business meeting with major retailer

[NewKidOnTheBlock]

Hi guys,

I'm hoping some of the experienced ladies and gentlemen on here can give me some "strategic" advice. I'm going to be starting a business in about 4 - 8 weeks importing clothing brands that are not presently in the country. The type of brands are totally unique and new and they have no distributors in this side of Europe.

I'm going to be importing these brands and selling them directly to consumers. That's my main goal at the moment. I've had brief contact with a couple of major retailors (think Topshop or House of Frasier) about potentially selling these brands to them, they've basically told me to make a catalogue/brochure for them to analyse and they will set me up with the relevant "buyers" to discuss selling. This is of course assuming they are interested but I've done my research and am 90% sure they will be as the brands are major in some parts of the world - just not in Europe. Now, I've just turned 25 and am only out of college a year or so and while it's not an excuse, but I don't have experience dealing with such companies of this kind of magnitude and buying power so to speak. I'm not worried about my communication skills or anything like that. My worry is concerned with dealing with these big players so to speak and how they could potentially exploit my current position.

In a nutshell, I'm afraid that when I tell them about the brands I have brought to market, and when they see the brochures etc that they will ask me "So, are you the distributor with sole rights to these brands ?" - I don't have exclusivity rights to these brands at present. So when I tell them "No", the chances of them ripping me off for what I brought to the table are quite high (I assume - it's business right ?) - Will they want to deal with me or will they go through all the hassle I've been through to secure these brands ???

For what it's worth, I'm based in the country these retailers are based and I will have a warehouse with stock on hand for them if they wish.

I need advice, what do I do in this situation ? Should I have a meeting with the retailers without having exclusive rights to the products or will they more than likely take me to the cleaners and rob the brands from under my nose ???

Appreciate all tips from the more experienced

 

[Online Trader]

I would not go to the other retailers without exclusivity, will the brand owners give you this?

 

[NewKidOnTheBlock]

It all comes down to money really. Some won't talk about it until after one year of selling (to make sure you're not a cowboy etc) and others, you need to spend a certain amount (a year or two to achieve).

It's confusing me because it's another potential stream of income for the business to grow faster but I don't have the sole rights to the products so it's a catch 22 situation.

So annoying really.

 

[Online Trader]

So the answer is no then

The problem that you will have is volume, if the major retailers connect with the brand owners directly (and they will) they will be able to give them volume, it sounds as though you may not be able to give the brand owner volume as you are a start up and to take huge stocks will probably stretch you

What you could do is get agreement in writing from the brand owners that you will be approaching customers X, Y, Z and that if they wish to purchase then all sales must go through you even if they contact the brand oners directly

 

[NewKidOnTheBlock]

Beautiful reply. That could work actually. Thanks for the tip.

 

[krustyrj]

how did you get the first contact with these retailors: email, going to the company headquarters, phone?
i'll start a business and I would like to know this
thanks

 

[Tej]

sorry to put a damper on proceedings here:

1 You have no company or trading history
2, You have no exclusivity for the "branded " goods you want to sell
3. You have no experience of selling to retail.. let alone major retailers
4. You will need a large capital base to fund the merchandise you wish to sell
5. You will need to get the merchandise and distribute on a set time scale

Plenty of other reasons..

You have a zero chance of selling to major retailers.. sorry!!
No point in living in promiseland

I would be delighted to be proven wrong..

IMO

 

[NewKidOnTheBlock]

Selling to major retailers is not that difficult to do, they just have to want what you have.

I know of people who have done so.

There are language barriers, quality control issues, lead time issues which the major retailers will have to take into consideration. Most big retailers have lazy purchasing teams who settle. Well that's the impression I've been given.

Experience is over-rated and can be learned on the job if you have a good head on your shoulders. The best experience is working for yourself and what you learn. There is no reason without the help of an experienced mentor who is an expert in this area and following the advice of "Online Trader" that something like this can't be done.

I personally think the most important part is timing.

 

[Dominic Taylor]

I personally think the most important part is timing.

And having the cash to afford buying the stock to sell in the first place - never rely on large companies paying you on time. Friend of a friend's company went bust because a very large multinational simply hadn't paid the 6-figure bill for a long, long while after it was due. Obviously more to the story but I'm sure £100k would help anyone