Selling to small retail shops.

[Rob2012]

Hello Guys,

I am 23 yr old recent University graduate who doesn't want a corporate life (unless its my cooperation ).

Basically I have this idea of purchasing jewelry accessories from China. I have a Chinese friend who will help me identify good supplier and negotiate good prices. I have found a good supplier and the only real advantage I have from what is currently offered in stores is packaging. I know this may be hard to understand as a viable advantage but just go along with it...

My main question is how can I supply small stores with my product. How do I go on about approaching small retailers and asking them to stock up on my items?

Also where do small retailers currently purchase their items from? is it generally from UK wholesalers or from China? Furthermore what sort of markup will they be looking for?

I would really appreciate a response from someone who has experience of owning/running a small shop or sells to shops themselves.

Thank you.

Rob

 

[Billmccallum]

My main question is how can I supply small stores with my product. How do I go on about approaching small retailers and asking them to stock up on my items?

The ususal options apply - spend hours trawling the internet to find retailers who have web sites or search or buy datalists of retailers who don't have web sites and email or write to them with details of your products and prices, you wll be lucky if you get a 5% response.

Alternatively, make personal visits to every retailer you can find and show them your product range, with luck and good products you might get a 10% response.

Finally, set up a wholesale outlet where the trade can come to you, should get at least 50% of visitors buying.

Also where do small retailers currently purchase their items from? is it generally from UK wholesalers or from China?

This varies as above, some will buy from online sources, some from sales people visiting, some direct from china and some from wholesalers, the volume they buy will dictate how they buy, e.g. they wont buy from china if it's only for a couple of hundred quid of stock, much easier just to pop to a wholesaler.

Furthermore what sort of markup will they be looking for?

Anything from 25% to 100% or more, depending on how long the stock will sit on the shelf, if its fast moving stock 25% to 50% would be OK, if it slow moving stock it has to be worth their while stocking it.

I would really appreciate a response from someone who has experience of owning/running a small shop or sells to shops themselves.

In the past (many years ago) I did sell direct to small retaillers (gifts & household).


see http://www.deansjewellery.co.uk/products.asp?CAT_CODE=1 for an example.

 

[Rob2012]

Billmccallum,

Buddy you have given me the perfect answer and I can't thank you enough!

 

[1starsbaby]

Also once you get up and running and you find retailers like your products/packaging you may also consider taking a small stand at a trade fair, majority of small independent gift retailers/ garden centre buyers etc attend Spring or Autumn fair at NEC (Feb 3-7th 2013 & Sept) or Home & Gift at Harrogate in July - also Top Drawer London, Pulse etc. It's worth visiting some of these just to have a wander round when you start out in business as it gives you inspiration and ideas of how to market your own products.
Good luck with your venture!

 

[Philip Hoyle]

When you're talking to shop owners, be flexible as to pricing, quantities, etc, be prepared to consider sale or return and/or providing point of sale merchandising aids (display boards, signage, etc). If you have to offer deals or discounts or whatever, make sure there's something in it for you, i.e. greater quantities. Don't just go cheap and offer everything just to get a sale.

But most importantly, listen to what the shops tell you. If they say no, find out why and what it would take for them to stock your goods. Learn from the refusals and change your pitch for the next one.

If a shop snaps your hand off, then again, learn from it - you've probably given too much away and so try to get a more favourable deal from the next one.

In the early stages, don't go in thinking you've got it right and ignoring what the shops are telling you. You never get a second chance to make a first impression, so if you're too expensive, too cheap, or whatever at first contact, then you're stuck with that impression.

In fact, when you're selecting your shops to visit, why not rank them according to which one(s) you want most and visit them last, once you've used the less attractive shops as a training ground to perfect your pitch and offering.