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. 


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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. 


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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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Part 3 of 3: Looking for new inexpensive ways to promote your shop and take your products direct to new customers?

Introduce opportunities for joint promotions with fellow traders, evening events, promotional discount weekends anything that would draw people into your town?  A late night shopping night once a month for the town centre maybe, especially if you are on the commuter route from the station.  Could you and a complimentary trader offer something together e.g. a fashion or beauty evening?  Don’t forget to research local events and business networking evenings as these often offer the opportunity to get up and promote your knowledge, products and  expertise  with other potential customers. 

 Lastly of course we have Websites and Ebay & Amazon, these will be instrumental in widening your customer account base and Ebay & Amazon offer you an opportunity of selling on line without the cost of your own site, how much easier can it get?
 
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Part 2 of 3: Looking for new inexpensive ways to promote your shop and take your products direct to new customers?


There are also opportunities for free publicity all you have to do is generate news worthy stories. Use your local press and radio; they look for human interest stories as your business is about
people, let them know about the arrival of new interesting product range, fitting events, specialist services and your involvement in community activities e.g. fundraising for local charity or breast care and always  announce any trade awards. The more the name of you, your services and business are in the press the better.


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