David Brown David Brown: Closing the Wealth Gap Stage 2: Buying Better Trade show halls are wondrous places, but enter with care. Published 6 years ago on March 17, 2015 By David Brown Instore April 2015 Issue Share Tweet Special note: This article is the second of four on the five stages of profitable retailing. If you follow this retail recipe and give equal and careful attention to each of the five stages, you will not only buy better, sell better and manage better, you will have a sustainable retail business model and money in the bank to provide for your family, your lifestyle and your retirement. NOW YOU FIND YOURSELF at a show (or sitting in front of a vendor) complete with your open-to-buy budget, your new product list, a list of vendors to talk to (new and existing), your aged inventory reports (by vendor) and a very clear idea of what you want to achieve. There’s a lot going on at shows including social events, tempting offers and show specials, so it can be hard to stay focused and to stick to your plan. As a rule of thumb, if it’s not in your plan or your budget, research it by all means, but sleep on it before you act on it. If you feel the same way by the end of the show or when you get back home, fine, trust your judgment. But if you’re making an emotional decision, think carefully. Remember, if you’re like most jewelers, you still own 80 percent of what you bought at previous shows after 12 months and 60 percent after 2 years. Those are not the sort of odds that will support a secure retirement. Shows have several major benefits and purposes including networking with your fellow retailers, meeting with existing vendors to enhance relationships and the opportunity to research new products, vendors and trends. Assuming you have existing terms in place, shows give you the opportunity to sit down with existing vendors and balance your investment, such as more of the product that has sold for you and less of the product that hasn’t. But first a word of advice: Your relationship with your good vendors is symbiotic in nature, that is, you need each other, it is not a conquest where you win and they lose or vice versa. To ask vendors to take back product that is already 12 months old, that you were slow to pay for the first time around and after you didn’t diligently reorder product that did sell quickly, is frankly unfair and unsustainable (for them). Good vendors don’t want you to be sitting on product that isn’t selling, because it’s costing both of you money — but they will only be eager to help if you’re one of the few retailers who reorder immediately and pay quickly. What vendor wouldn’t want to work with a retailer who pays quickly and takes responsibility for selling and managing their product, not just buying it? Advertisement Talking to other, successful retailers (ideally who already own the type of retail business you aspire to become) can help you identify vendors, brands and trends that are either on the way up or on the way out. Here are some tips for hiring a new vendor: Research. Network at shows and ask other retailers about their experiences. Research trade magazines and trade organizations. Ask for referrals or testimonials and actually check them out. Make sure they are a good fit for your current and future business model. Are they a good personal fit for you, that is, do you trust and like them? What is their experience, track record and history in this market segment? Clearly articulate the expectations of the relationship, what I call the “up-front contract.” What you expect from them. What they can expect from you. Ask for exclusivity in your area (subject to you achieving minimum performance expectations). At the very least, find out what other retailers carry the product, or are likely to carry the product, in your area. What ongoing support do they offer, for example, displays, training, packaging, brochures. Establish terms, i.e., payment terms, stock balance privileges. If you really want to negotiate better terms, pay quickly and reorder quickly. Establish delivery expectations. Lead times for the initial order, reorders (this is super important), and “special orders,” Think about your exit strategy. The law of averages says only 20 percent of it will sell quickly, so before you put anything on paper, ask yourself, What will I do if this product doesn’t sell within x days? And remember, an item that sold quickly the first time has an 80 percent chance of selling quickly again the next time, whereas, if you take that same money and speculate with it, it only has a 20 percent chance of selling. Are you a business entrepreneur or a gambler? Related Topics: David Brown click to Comment(Comment) Up Next By the Numbers: Peer Review Don't Miss 2015 Off to a Solid Start with 13% YoY Sales Jump in January David Brown David Brown is the President of The Edge Retail Academy (sister company of The Edge), who provide expert consulting services to help with all facets of your business including inventory management, staffing, sales techniques, financial growth and retirement planning...All custom-tailored to your store’s needs. By utilizing the power of The Edge, we analyze major Key Performance Indicators that point to your store’s current challenges and future opportunities. Edge Pulse is the ideal add-on to the Edge, to better understand critical sales and inventory data to improve business profitability. It benchmarks your store against 1100+ other Edge Users and ensures you stay on top of market trends. 877-569-8657, Ext. 001 or [email protected] or www.EdgeRetailAcademy.com Continue Reading Advertisement SPONSORED VIDEO Wilkerson Testimonials After 42 Years in Business, They Chose Wilkerson to Close Up Shop After 42 years, it was time for Gina McHugh to hang up her bench tools and plan on doing something completely different. She and her husband, Mick, had a beautiful Binghamton, NY store — The Goldsmith — but in late 2019, the time felt right for retirement. They called Wilkerson. “They’d always been a part of our bridal jewelry selection,” says Gina, “and I felt really good about their quality and service. So, when we were looking for someone to work with us, Wilkerson was a natural.” With the kind of service and support Wilkerson is known for, Gina says their sales consultants made their retirement sale, “successful and quite easy.” You may like Want To Know How Your Website Is Doing? Track These Metrics Cash Flow and Profits Not Lining Up? This May Be the Reason 3 Ways To Inject Cash Into Your Jewelry Business Promoted Headlines A Liquidation Sale during a Pandemic? Wilkerson Showed Them the Way Wilkerson Why Have 1,800+ Jewelers Switched to BriteCo? Briteco Jewelry Appraisals Made Easy Jewelers Mutual Advertisement Latest Trending Videos Jewelry Pro Gear33 mins ago A Diamond Color Grading Machine, New Phone Cleaner, And More Fresh Gear for Jewelry Pros Gem Quiz50 mins ago Here’s the Answer to September’s Gem Quiz Big Survey4 hours ago 56% of Jewelers Have Made a Sale on Facebook America's Coolest Stores5 hours ago Ohio Jewelry Store Owner Grows Up With Her Customers Best of The Best5 hours ago Retail Jeweler’s New Collection Draws On The Law Of Attraction Big Survey2 weeks ago Jewelers Plan to Vote for This Presidential Candidate on Nov. 3 Benchmarks4 weeks ago 13 Jewelry Store Shop Areas That Put Bench Jewelers Center Stage Products4 weeks ago The Overlooked Jewelry Trend Started By Princess Beatrice At Her Wedding Press Releases3 weeks ago 9-Carat Diamond Found at Crater of Diamonds State Park Headlines3 weeks ago CNN Delves Into Lab-Grown Diamond Debate Sponsored Content5 days ago A Liquidation Sale during a Pandemic? Wilkerson Showed Them the Way Sponsored Webinars2 weeks ago Podium Presents: 5 Crucial Customer Experience Improvements to Make as You Reopen Jimmy Degroot2 weeks ago Video: How to Smooth Out the Chaos in Your Jewelry Store and Create Harmony Instead Jim Ackerman3 weeks ago Video: Don’t Be Afraid to Run Multiple Jewelry Marketing Promotions at Once Jim Ackerman4 weeks ago Video: How to Spend Your Jewelry-Business Advertising Budget the Right Way Advertisement Advertisement SubscribeBULLETINS INSTORE helps you become a better jeweler with the biggest daily news headlines and useful tips. (Mailed 5x per week.) Facebook Latest Comments Most Popular Big Survey1 week ago These Are the Top Watch Brands of 2020, According to INSTORE’s Big Survey Big Survey5 days ago The Guy Who Bought 13 Rings, and Other Tales of Serial Engagements Big Survey1 week ago COVID-19 Has Some Silver Linings for Jewelers — Here Are the Upsides Big Survey1 week ago These Are the Top Jewelry Brands of 2020, According to the Big Survey Big Survey4 days ago 7 Out of 10 Jewelers Surveyed Said They Do Not Want to Add a Brand David Brown5 days ago Cash Flow and Profits Not Lining Up? This May Be the Reason Big Survey2 days ago What’s Wrong with Millennials? Here’s What Jewelers Say Sponsored Content6 days ago Why Have 1,800+ Jewelers Switched to BriteCo?