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What To Look For When Adding A New Vendor To Your Store

Centurion


May 05, 2023


Key Largo, FL--For jewelry retailers, adding a new vendor to your store can be a great way to bring in fresh and exciting products that your customers will love. However, it's important to do your due diligence and ensure that you're making a smart business decision. Here are some things to consider when adding a new vendor to your store.


  1. Ask about exclusivity. Do you have the exclusive in your market, or is the vendor also selling to other retailers in the area? If other retailers are carrying the same products, you'll want to think about how you can differentiate yourself. Consider things like price, customer service, warranty offerings, and unique marketing strategies that will make your store stand out.

  2. Do your homework. Look at the brand's history and reputation, as well as its target market and how it fits with your existing inventory. Will it attract new customers or appeal to your current ones?

Take a look at how the vendor's products are priced compared to other vendors selling the same or similar items. You'll also want to do some research on which vendors your competitors are using so you can get an idea of the price point you need to be at with your new supplier.


Consider the gross margin allowed. Look at the pricing structure and any price protection policies they may have. This can impact your ability to make a profit and compete with other retailers. For example, if a brand requires a minimum MSRP, it can prevent a price war and allow for a healthy margin. However, if the margin is too low or the brand is widely available at a discount elsewhere, it may not be worth carrying. By carefully assessing the value and potential profitability of a brand, you can make informed decisions and successfully grow your business.


        3. Ask about support services. Consider the level of support the brand will offer you as a vendor. Will they provide training, marketing materials, or co-op advertising dollars? These factors can all contribute to the success of the brand in your store.

Make sure to also inquire about any marketing assets the vendor has available, and how you can access these. This could include things like product photos and descriptions for your website or physical promotional materials. Lastly, consider if the vendor offers easy access to pricing, ordering the product, or even modifications.


       4. Ask what they consider a successful partnership. Should you be doing reorders on top sellers weekly to keep the turn high on the products? What happens if the product isn't selling well in your store? You'll want to ensure that both you and the vendor are on the same page in terms of what you expect from each other.


      5. Find out if they offer customization. More than 60% of engagement ring sales involve some sort of modification. It's important to know what the vendor offers in terms of modifications and customization. Equally as important is the ability to get pricing information immediately. Millennials especially want things right away, and you don't want to lose a potential customer because you have to wait for pricing information from the vendor.


      6. Learn about their return or exchange policy. If a product isn't selling well in your store, you'll want to know what options you have for returning or exchanging it. Ask if they offer a memo when you purchase a certain amount of product. This can be a great way to increase visibility for the vendor's products in your store, without requiring a large investment from you.

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