Yup. It’s time. The relative peace and quiet (aka: break from the airports) over the holidays has passed, with the show season and speaking engagements in high gear. I’m headed to the Big Apple for a record-speed-race through the New York International Gift Fair, then jet straight to Louisville, Kentucky, where I’ll be addressing members of the ANLA (American Nursery and Landscape Association). With luck, I’ll squeeze a show report in there along the way, anxious to see how attitudes and show specials play, now that we’re getting down to the end of the winter circuit.
To vendors and reps making their way to New York, heads up. There are a few patterns coming into play that you’ll want to be ready for…and open to, if you get my drift:
Show specials that extend beyond the shows aren’t special
Remember when show specials were created to entice buyers to your booth? To reward those who ponied up the money and time to come to market? Let me tell ya, buyers who continue to make those sacrifices are boiling mad that you’re allowing non-attendees to take advantage of so-called show “specials” in spite of their decision to stay home. Don’t be surprised if buyers opt not to write orders on site if you’ve built a track record of offering “specials” after the fact to those who pass on the trip.
Big opening minimums = zero openings
Lines that continue to insist on bloated opening orders are being left at the curb by buyers who understand that’s yesterday’s way of doing business. ”We want a presence in your store” is hooey; the New Rules stipulate that it’s turns-—not depth of inventory-—that makes money. Solution: Offer a small opening, with no specific reorder requirement, and odds are heavily in favor of you getting not only the first order, but a multitude of follow up orders, assuming your product is as good as you say. Stick to a large opening requirement and you’ll guarantee your competition gets real estate on store shelves that could have been yours.
Checks are in. Credit cards are out.
If the New Rules stipulate turns are in, the New Cash Flow stipulates credit cards are out. The past 18 months has been a crash MBA course for retailers; they understand cash flow and inventory management better than ever before. Part of that education involved getting the calculator out, adding up just how much money they’re spending for the ”convenience” of paying you with credit cards. Savvy retailers have put their foot down, telling vendors and reps they’re paying by check only, period, as cash flow permits. You want a credit card number? Head to the back of the line; there are a bunch of competing companies happy to work with retailers who have cash in the bank and know how to manage it.
The smart ones are still standing…so don’t trip yourself up
Two years ago, the mindset of numerous vendors and reps was “you need us more than we need you.” Well, things have shifted. Retail became badly overbuilt through the late ‘90s and early 2000’s, populated by a lot of folks who opened stores because it looked fun, because they wanted to turn a hobby into a money maker, or because they thought retail meant lots of income (who are those people, anyway?). They’re gone. The past year wiped them out. Kaput.
What that means is that the buyers you see today are smart. They’ve figured out how to survive and how to run a business like a business. They have more backbone than ever, fiercely determined to stand up for their stores, not be stood up by over-reaching vendors or prima donna reps. Now, before anyone gets up in arms, I’m not insinuating all vendors and reps are awful-—the vast, vast, vast majority are great, and “get” what this whole partnership thing is all about.
Those that aren’t, though…well, they know who they are. And so do the buyers. And they talk.
The attitude at the beginning of the winter show season was all about working together, as a team, so the supply chain functioned in a way that made money for everyone. Atlanta proved vendors, reps, and retailers can work together in a rational, logical manner. Give and take. Listen and help. Care that both sides of the transaction come away happy.
Whadaya say we keep that momentum going just a little bit longer?
Click here to tell me what you think....
Boy did I relate to your minimum buy paragraph. I’m doing battle with a key supplier who is a top tier vendor in the shoe retail industry. The company keeps insisting on their buy parameters without any understanding of the micro-climate business variations from their norm that exist out in the real world.
Would appreciate feedback from others who have successfully overcome this.
As a road rep of 35 years, I like to think I stopped being a “salesman” a long time ago. So much of what I’m doing now involves “talking out” ideas with customers, and getting them to use all of the tools that are out there to make them more profitable. This can also help ensure they will survive the storm. I always tell them I’m in it for the long run with them, and if the resources aren’t there this time, we’ll try again next time.
This is my family, and I truly do care about their welfare. Nothing has been a bigger FREE gift to them than the 3/50 project, and this is the best way for them to educate their public. How they carry the ball from there, is what measures the amount of success they will have.
EVERYTHING goes in cycles, and I believe that those that change with the times will do extremely well!
Re: Checks are in…..Another possibility, Ask your favorite vendors if they offer Fax by Check. It’s easy and convenient. Write your check, fax it to them, request confirmation and you are complete,
No envelope, no postage.
Editor’s note: Gina, that sounds like a fabulous option-—hadn’t heard of it before, but will definitely look into it, then spread the word. What a GREAT option for buyers wanting to keep their budgets balanced. Thanks!