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Publisher's Column

Manufacturers and suppliers will find it easier to open up more retail outlets for their products if they are cognizant of and address the concerns that affect a retailers’ buying decisions.

Likewise, retailers who seek out detailed information before adding a company to their supplier list will protect themselves from getting stuck with “dud” products or investing in slow moving inventory.

The following list of questions that retailers should ask manufacturers/suppliers is by no means complete or in any specific order; however, it’s a start:

• What is the wholesale price and what is the MSRP (Manufacturer’s Recommended Retail Price)?
• What makes the product different from others like it in terms of quality, features, price etc.?
• Are there any minimum orders or how many units does one need to buy initially?
• What are the terms of payment? Are there any prepayment discounts?
• Are there any other discounts?
• Do you provide any marketing or merchandising support (e.g. Point of Purchase (POP) displays; co-op advertising funds based on sales per year; product information brochures for prospective buyers)?
• What is the return policy on damaged products?
• From which location is the product shipped? Location will effect delivery times/freight costs.
• Is the product sold through mass merchants and, if so, at what prices?
• Does the supplier/manufacturer sell the product direct to consumer online and, if so, at what price?
• Do they have manufacturers’ representatives and if so, who is the representative for your area?
• Can the manufacturer/supplier provide you with a list of three or four stores that carry their product so that you can talk to them about the selling history or pattern of their product? This will give you an idea about the marketability of the product.
• Does the product meet all the safety requirements?
• Does the manufacturer offer product registration or customer support for consumers?
• What is the supplier’s future business plan? Although not a sure thing, it will give you an indication of whether they are going to be around for at least some time.

Do NOT hesitate to add products from small or new suppliers or manufacturers. If they have a great product, they will not remain small for long and you should strive to connect with such products as early as you spot them. In addition, unique products from smaller suppliers help you set yourself apart from the mass merchants.

Naresh Dewan
Publisher