Wholesale prices for Deparment Stores

[Woodhouse]

Hi there

I wonder if anyone can help with this question?

At the moment I sell my product range to retailers at 50% of the RRP.

I would like to approach Department Stores with my range but I am not sure if they would work to the same 50% or if they generally expect larger profit margins.

I have sought guidance from Business Link but they seem to be quite clueless

I don't want to waste the opportunity to secure business by approaching companies if a 50% margin isn't the industry standard, and naturally I don't want to appear clueless and risk looking unprofessional.

Thanks in advance.
Sue

[leehack]

RRP aren't worth anything in my opinion. I know of many occurrences where the manufacturer asks the retailer what they would like the RRP to be, one of those pointless figures quoted to make us believe we are saving a vast amount of money.

My experience is that retail work to 33% profit as a rule and i'm sure there is something tax related (accountant blurb) if nowhere near this figure. If they are making at least 33% they will be happy.

Don't be scared to go see them, they are only people and often care far less than you do. When speaking to them, imagine they are sitting on the toilet having a number 2 in front of you, it brings it back to earth and you realise they are just people. Beware it can make you smirk though - not very good for interviews.

If you want to know whether that fit bloke down the local fancies you or not Sue, you have to approach him and find out. Its much better knowing that he doesn't (if thats the case) than sit there wondering. You go Girl!

[Woodhouse]

Hi Lee

Thanks for the reply.

"imagine they are sitting on the toilet having a number 2 in front of you"

I think I may just take the plunge, send some samples through and open up a discussion. There is just no help available with regards to how to approach buyers, and negotiate prices.

Believe it or not I spent some time working for Topshop in the buying department many moons ago when I was a student but I think I was too busy just ooohing and ahhhing at all the clothes and shoes........should've paid a bit more attention!.

Thanks for the reply.

[leehack]

"imagine they are sitting on the toilet having a number 2 in front of you"

It works trust me.

I think I may just take the plunge, send some samples through and open up a discussion. There is just no help available with regards to how to approach buyers, and negotiate prices.

"I THINK" and "I MAY" are shite words Sue and undoubtedly mean that you will put it off for as long as you possibly can.

DO NOT send them in, go and see them in person - a coward sends them in and they will pick up on that. If you are going to sell something, you have to believe in it yourself 100% and go in confident. You are doing them a favour introducing your products, they need your products.

Write up some price lists, take in some samples and you tell them what they retail for and what they can buy them for. If they want to barter then let them and discuss it, forget worrying about how to cost things, that can be done on a piece of paper before you arrive, concentrate on selling them the best products they will have seen for sometime.

A week before you are visiting, each day for 20-30 minutes, get yourself in a quiet dark room, CLOSE YOUR EYES and imagine the visit, what you say, what you do, how you hold yourself and how you present the items. Do this for a week religiously (you will feel a right pratt) but trust me it works and by the time you actually go, you have trained your brain on how it goes and you will feel far less nervous. You must imagine it fully and do the mock meeting properly but it's a fantastic technique.

It alleviates nerves somewhat as you have already been through the meeting at least 7 times before, anyone having done something 7 times previously, will never be as nervous as their first time.

If you haven't done it by Feb 28th, i will come slap you with a wet kipper and it might be frozen if im really annoyed.

[Woodhouse]

Lee you have made me chuckle.

I actually love doing presentations, I don't suffer from nerves or anything I meet with as many of my retailers as I can so no worries on that front. Nothing beats face to face contact, but I haven't really been getting my foot in the door with major retailers. It's really hard to get appointments but I made it one of my business objectives this year.

I really appreciate your words of encouragement.

Not sure I fancy being slapped with a kipper so I had better get on

[leehack]

Lee you have made me chuckle.

Me too, i seem to get all motivational after 27 hours with no kip.

Nothing beats face to face contact, but I haven't really been getting my foot in the door with major retailers.

There's a big department store about 2 mile from where i live, if i want to get my foot in the door, i walk down there and put my size 9's through the hole in wall that appears when you push that glass thing called a door.

Get a presentation pack together, get your a$$ down there and leave it with the purchasing manager or any manager of any use. Have all your contact details on there and follow up with a phonecall a week later (take their name of course). Try something different, if you want to get in there and you are finding it hard, then don't approach things conventionally. Stand out from the rest and do something that most would not.

It's really hard to get appointments but I made it one of my business objectives this year.

Its far too important an issue to be a yearly objective, at the most it should be a quarterly one. A yearly objective means that you will do it in November, meaning that you could have lost 8 months of sales. Something you want real bad and you have nothing stopping you from doing, should never be a yearly objective - that's a serious safety net and get out clause if i've ever heard one.

Answer me this - what the hell is going to take 12 months that couldn't be done in 3 months? (you are not allowed to answer learn version 8 btw)

[chris ashdown]

Sue

Look very closely at what the items actually cost you, not just the buying price but your time also costs in buying, packing etc.

When you have the real price of what it costs, you can add the costs of supplying this new customer and if the new volume of sales brings down your overall costs etc

If they are a really big company, then you can be honest with your costs to them and agree a happy reward for your efforts, they need you as much as you need them

Just be honest with them and you should be able to have a happy outcome on both sides, if you start exagerating they will find out in the end

Dont forget if they are buying more from you than you sell yourself, you may not be able to look after them as they expect, without it effecting your own side of the business

Wish you well

[Woodhouse]

Thanks for this Chris.

I appreciate your reply.