It is so
important to have strong working relationships with your suppliers no matter
how often they visit; they are in effect your business partners and integral to
its success or failure for that season. Effectively you are investing your
money and trust into their product, skills and business acumen and relying on
them to deliver a quality, good fitting product on time. How can you ensure
this, you need to build strong communication, understanding and trust in them
and their business…you are in their hands.
Part 3 of 3: New to the industry? Are you unclear on exactly what the difference is between the different types of suppliers: distributors, agents and reps?
A distributor is a company who buys and imports products in from another country, they buy the product at a discount and in turn warehouse and re sell them onto the retailer or direct to the consumer. Most distributors provide strong manpower and cash support to the manufacturer and their promotional efforts. They are able to set the prices themselves ( often within guidelines from the manufacturer) and provide a range of services such as; product information, sales estimates and forecasts, technical support, after-sales services and credit to their customers.
Part 2 of 3: New to the industry? Are you unclear on exactly what the difference is between the different types of suppliers: distributors, agents and reps?
Company
representatives are fully salaried and employed
persons who have company cars and expense accounts. They often receive a basic
salary as well as a small % commission and target driven bonuses. They are in
effect paid to service, sell to and visit every customer on their territory and
represent “The Company” they work for and to sell its
merchandise.
Part 1 of 3: New to the industry? Are you unclear on exactly what the difference is between the different types of suppliers: distributors, agents and reps?
Some people that have been in the industry for a quite a while still do not have a clear understanding of these roles and it is important that you, as a business owner, understand how they fit into the supply chain and processes.
An agent is someone who is self-employed and has a contract with a manufacturer or distributor to negotiate the sale of goods or services on their behalf, in return for a commission or fee percentage of all sales generated. They do not receive any compensation from the company towards any expenses, hence why you may find that agents do not call as regularly as paid company representatives. They only receive their commission once the products have been delivered to you and you, the retailer have paid the invoice. An agent can, as a result, wait many months between taking an order and receiving their commission.
Part 2 of 2: Do you need to reduce running costs?
If
you have any members of staff, involve them in the cost-cutting process, let them
know that times are tough but that you are all in the same boat together. It
will also prove to them that you value their input. Plus, she they may have
some great ideas!
Renegotiate
your lease to a lower rent, or a temporary lower rent while business is slow.
Shop vacancies are high; your landlord will probably prefer reduced rent to no
rent. Pay your bills only when they are
due or if you have to only when you are chased, it’s not ideal but it may help
for a while or better still try and renegotiate terms with suppliers ,
can they offer you longer credit, higher discounts if you pay earlier? Finally, review every single invoice and
payment out of your business for the past year, did you need it, do you need it
this year or can you cut the usage? Review and be hard you can always add it
back in later on when cash flow eases.
Part 1 of 2: Do you need to reduce running costs?
After years of working in retailing myself and
analysing costs I know how it feels to constantly look at saving money, the
trick is to achieve this without harming your business. Sometimes the best cost-cutting tips are the most obvious; Switching off lights, Utility charges are often the most expensive necessities in your
business, do all of those lights and electrical items need to be powered up all
day long?
Re negotiate your phone tariffs and agreement,
there are so many deals to be done, same goes for your insurances.
Stationary costs can be high, make simple little
changes like using both sides of plain paper and introduce as many paperless
systems as possible. Plus it’s good for the environment. Watch how much you use your printer – if you
print a lot then don’t! Ink is very expensive, get used to viewing items on
your computer.
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