This guide provides an overview of the process of selling your designs and products to a retailer. It looks at the best way to approach a retailer including: Preparing for an appointment Seasonality Approaching a buyer for an appointment What the retailer expects from the designer / seller
During the appointment / negotiation The importance of maintaining the relationship You may also wish to look at An Introduction to Retail which offers information on the benefits of selling your work to retailers.
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Preparing for an appointment Before approaching a buyer, it is important to carry out research into the company’s customer base and profile to decide if this will be relevant for your product. It is helpful to visit their shop / outlets and to look at who is shopping and purchasing there. •
Check that their customer is who you want to be selling to / associated with.
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Check that the presentation of the stock is in keeping with how
you want your own product to be displayed.
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Are the brands that they sell ones with which you would like yours to be associated?
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Does the store environment suit your product image?
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Do the price points fit with your own price structure?
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Is the location of the outlet right for your customer?
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Is the retailer discounting brand names and diluting the image of the brands they stock? 3/19
If the image and presentation of the shop doesn’t suit your brand criteria, it may be better to turn down the opportunity of short-term sales and protect your brand’s image by selling through a more appropriate retailer.
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Seasonality It is important to understand retail seasonality. This can be different for each retailer depending on where / what they retail. Generally, the peak retail selling period is in the months leading up to Christmas from September to December. Some retailers can expect to take up to 75% of their sales within this period. However, if the shop is situated within a visitor centre / museum then summer may be their peak season, when tourist / visitor numbers are at their highest. Don’t be afraid to approach a sales assistant on the shop floor for advice. It is helpful to know when the retailer may be quieter as this is often the best time to approach them for a sales appointment.
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Approaching a buyer for an appointment •
Find out the buyer’s name and position. The staff on the shop floor can be a good source of information.
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It is best to make initial contact by either telephone, email or letter. Do not be surprised if you do not hear back from them immediately. Buyers tend to be busy people and often do not respond to emails and letters. It can often pay to be persistent by telephoning again and / or resending emails.
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Present yourself as a business, not as an individual. It is important that you present a professional image representing your brand when requesting a meeting.
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What the retailer expects from the designer / seller Once you have made an appointment with a buyer, it is important to be well prepared for the meeting. Take time to prepare and be ready to include the following in your presentation:
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Background information on your product •
Some information about you and your product / brand – How you got started or where you take your inspiration from and perhaps even what your aspirations are for your brand.
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Design insight – What was the inspiration for the product? This is a chance for you to sell your product idea and excite the buyer about your design. Highlight what makes your product unique. Remember that the customer is usually looking for something different.
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Product name / reference number – Some form of reference to make identification easier when communicating after the meeting or for order placement.
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Information on pricing •
Unit cost i.e. the trade (wholesale) price. This is the price at which you sell to the trade. This will be the cost of making, plus your profit margin, but will not include a retail mark up.
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The retail price is the price that you sell direct to the public i.e. the price on display in shops and galleries. The retailer will add a mark-up to cover the costs incurred when selling the work; which can be between 100% and 250%, or even more. Try to keep your retail price as constant as possible, so as to maintain a steady market value for your work.
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If you are already retailing the product, be clear about what the retail price is.
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Information on ordering •
Minimum order quantities – How much do they need to order to meet your minimum order requirements? In order to build the relationship with the buyer, you may have to trade without minimums giving them a chance to test your product in their store.
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Discounts for larger quantities. It may be beneficial for you to offer a discount for larger orders. For example: free delivery on orders over £200.
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Information on ordering continued •
Stock position – Is there stock available for a quick delivery of the item?
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Lead time for ordering – If there is no stock currently available, what is the delivery lead time? In other words, how long will it take you to deliver after they confirm their order?
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Is the product sold anywhere else? If so – where? Be honest about where else the product is currently retailing.
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Further information on your product •
Production / manufacturing – Some general information about how and where the product is made including production methods, materials used, sustainability, etc.
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Are there other options of the product available? For example, in different prints, finishes, designs or colour ways? These should be shown to the buyer, preferably clearly presented in a folder highlighting the options available
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Samples – A perfect example of what the product will look like when delivered preferably made by the same manufacturer that
will be delivering the production
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Further information on your product continued •
Colour samples – samples illustrating colour way options
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Point of Sale information & packaging – Information showing what the point of sale material (if there is any) and packaging /
labelling will look like. This can include samples, illustrations or photos which provide a visual reference. Remember however that if the buyer places an order that they may prefer to have your product presented in their packaging and with their labels •
What are your terms including price, lead times, payment details, and quantities? 13/19
During the sales appointment / negotiation •
Know your bottom line in pricing – don’t go beneath it, and try not to be bullied or pressured into agreeing terms of which you are unsure. If you are not sure about something, ask for
time to get back to the buyer. •
Exclusivity – increasingly buyers are looking for exclusivity of designs / products. The seller should expect a larger quantity in
return to offset any loss in additional sales they could gain by selling elsewhere. It is important to consider this carefully. One option could be to produce a new range specifically for the
client or to modify the existing design slightly and offer exclusivity. It may also be possible to offer the same design but in an exclusive colour way, finish or print design.
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If the buyer is placing an order, it is important to agree all terms including •
price
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lead times
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payment details
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delivery charges including in transit insurance
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returns policies
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quantities
in writing and preferably sign a contract
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The importance of maintaining a good relationship When selling to a company, try to deal with the same person and develop a good working relationship with the buyer, understanding their needs.
Follow up the meeting with a letter to the buyer confirming what was agreed, and ask him / her to acknowledge receipt of that letter in writing. If the buyer does not place an order after the meeting, do not be afraid to ask for feedback. It will provide you with valuable insight into how you can perhaps modify your product / prices to suit them going forward. It is also an opportunity to keep the dialogue with the buyer open.
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Keep in contact with the buyer – if a lead-time is 3 months, give the buyer regular progress updates. If you are having problems meeting the deadline, tell the buyer immediately; do not stick your head in the sand. Try to give the buyer solutions rather than problems. Deliver the correct quantity on time – there are often penalties for late delivery. It is standard practice to enclose a detailed delivery note to be signed on delivery.
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Ensure quality control of orders going out, especially if working with subcontractors and delegating production processes.
Contact the buyer after delivery to check that everything is fine.
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Next steps For further information on this subject, please refer to the following resources: Costing & Pricing Work An Introduction to Retail Preparing to Attend Trade Events Planning to Sell at Trade Events How do I protect my ideas / business / product? Can you give any help with contracts?
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Disclaimer: Cultural Enterprise Office is not responsible for any advice or information provided by any external organisation referenced in this document.