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Leslie Carothers

Money in your pockets

I was sitting at my computer this morning contemplating the subject of this blog. Several topics came to mind, but I thought this one the most relevant given that market begins in less than a week and, perhaps, it will spark some useful conversations between my retailer and manufacturer readers and will help you put…money in your pockets.

 
What follows are my thoughts and ideas on how both sides can work together to create added value and increase those profits.

1. MANUFACTURERS:  Please realize a piece you wholesale for $1000.00 usually retails for double that-if not more. So, from your side you provide $1000.00 worth of craftsmanship, materials, etc. What do you think the consumer who pays $2500.00 for that same piece expects? I have the answer- a lot more. So, when there is a customer service issue on that piece, it's being generated by a consumer who had a MUCH higher quality/performance expectation than you, the mfg., might have intended for them to have had. As a result, you end up issuing a return authorization and losing money and the retailer's customer is upset and frustrated. What's the answer? Think about the retail price in your original planning processes and find out through conversations with your key retailers what their customers expect for that price point and THEN key your mfg. capabilities to THAT level of expectation. I can just hear a few people now…. "I don't want to let someone else determine how I run my business." That is an attitude that no one can afford in today's marketplace. There are too many smaller manufacturers eager to partner with retailers who will give them a chance on their floors and who will take advice from these retailers on just this issue. 

 
2. RETAILERS:  Give new vendors a chance with your buyers. Have a vendor week. Each vendor gets to come in and give a ONE HOUR uninterrupted presentation to your buyers. There is never enough time at market for your buyers to see all the new product out there. Hold your own market within your organization-especially if you're a multi-store retailer. Your buyers will find all the hottest new lines out there this way. If you're really progressive- have the mfg. use WEBEX and do a virtual presentation to all of your buyers and others who have an interest who may be in different locations. If you don't know what WEBEX is- check out www.webex.com. It will allow live conversations between retailers and manufacturers with slide shows of product able to be shown simultaneously between locations. In addition, you can write on the computer screen and all the other participants can, too and all of you can see and hear each other at all times. It is widely used in corporate America and is not out of reach financially.  I used it in my business to train virtually. The sales consultants LOVED it.

 
3. MANUFACTURERS AND RETAILERS: Each of you needs to get a strong taste of what it's like to be in the other person's shoes. If you're the CEO of a manufacturer, when is the last time you WORKED on a sales floor for a weekend alongside the salespeople of a key retailer? If you've never done this-why not? When is the last time you brought in the best salespeople for your line from around the country(ask your reps) for a round table discussion-not a factory tour, but an honest discussion of how you can improve your product, catalog, website, etc. These are the people selling your product-not the retail owners or buyers. Think about it.  And, for retailer CEO's, you may have been on a factory tour facilitated by an owner of a key manufacturer, but when is the last time you sat down with their customer service staff, representatives and key manufacturing staff and said, " Teach me what we can do to make your lives easier?" "What are we asking you to do that is hurting your business?" "What can we do to help you have a healthier business?" "How can we work together in a way that is more profitable for both of us?" Get the issues out on the table for the people that are actually having to do the nitty gritty work of making your stores tick smoothly. The line staff will be amazed that you would do this and ask their opinion. Can you imagine the goodwill these sorts of round table discussions would generate?  
 

I hope these ideas help you as you talk to each other at market. There's another one I want to blog about-the role of reps-but that will have to wait as I know this blog is a long one and I want to hear your comments…If you have a great story about how you've partnered with a retailer or manufacturer in a unique way to create value-please send them to me at tkp@sbcglobal.net or post them on the blog for all to see. I'll select the best ones and share them-with your permission-so we can all partner together more effectively in the future.