Pitching Large Retailers – Is It Worth It?

Pitching any retailer, large or small, takes time, energy, strategy, preparation and, as you all know, money. So when it comes to larger retailers versus brick and mortar, independent retailers, would it be fair to say that there is more of each of these things involved? In a word – yes.

Many wholesalers dream of the day Target or Bloomingdale’s will want to carry their line. In fact, many only pitch and sell to the smaller retailers to use as a stepping ladder to get to the big dogs. Unfortunately, this strategy isn’t always effective. It takes more than a handful of independent retail stores carrying your product to get a meeting with a large retailer. Here’s the catch – you may have no retailers under your belt and they might see you OR you might have a hundred on your account list and they still won’t see you. Each product and each retailer need to  align themselves up right on track to make a good match, and often this takes years of effort with no full proof strategy as to how to get there.

Are you tired yet? If you are in it for the long haul, stay awake and keeping trying. But be ready for a lot of obstacles that most small retailers don’t throw your way. This includes:

[tweetmeme]1. Vendor agreements. Forget about the contract you give to your indie stores… Large retailers have their own rules, terms, deadlines and more that often exceed twenty pages in detail. If you can’t meet each of their outlined demands, the deal is usually off before it even gets started.

2. Extended payment terms. COD? No way. Payment when the order is made? Forget about it. Most large retailers will pay their vendors anywhere from 30 to 90 days out, on average. If you need this money to get your production started, that’s your problem – not theirs. So be prepared to front some money if that huge order you have dreamed of is finally place.

3. Charge backs. So your dream came true and a large retailer bought your product. Yeah! But what happens if your product doesn’t sell? Be prepared  for a request of money to “charge back” what isn’t selling. Retailers have different terms to identify this, but essentially they are asking for money to make up for what didn’t sell.

4. Advertising dollars. Want to make the cover of a Nordstrom catalog? Definitely! Then again… you might have to pay for that. Not all advertising in a retailer’s promotional ads, catalogs and TV spots come for free. They may even write it into your vendor contract that you have to pay them a certain amount for advertising with no guarantee of how your product will be featured.

5. Warehouse and shipping details. A whole new understanding of deadlines will open up to you here. Retailers will want very specific dates on shipping as well as very specific details on how things will be packaged and shipped. This may mean a whole new way of doing things for you.

6. People, people and more people.Do you love the relationships you have with your small retailers? That small town, friendly “hi, how are you” type relationship? Forget about it. While buyers of large retailers are certainly nice people, they are also very busy and have numbers to crunch all day long. After all, they work for corporate America. Be prepared for buyers to call you once or twice, then get prepared for associates, anaylsts, marketing execs and more to be hounding you.

7. Insurance. Have it? For most retailers, you’ll need to if you don’t. It’s all part of their vendor contract.

8. Travel. Unless you are lucky enough to live close to the large retailer you are trying to pitch, it’s possible you may have to travel to see them. A face to face meeting is exciting and essential to build a partnership, but it costs a lot of money. Are you prepared for this overhead? Make sure you plan for future travel to visit your key retailers, as well. This all adds up!

9. In store marketing. Have you thought about this at all? Hope so – because your retailers may ask you. Do you have point of purchase displays (POP)? Do you need them? How about hang tags? Depending on your product, your target retailer may have specific requests as to what you need for them to help market your product in the store.

10. Passion. Unless you are truly dedicated to your product, your dream and often working twenty hour days, then large retailers may not be for you. But once you get there and stay there, it can be a dream come true! Just know that not everyone gets there and survives. It can crush your business financially if you have only dedicated your time towards large retailers and then realized the small guys are valuable, too. Stay strong, stay dedicated and stay passionate to succeed.

Finally, be realistic with yourself and your pitch. Are you truly prepared? There is nothing worse than landing a phone call or meeting and then realizing you weren’t ready. Make sure you are comfortabe with the hurdles  they will give you before you dive in. But if you are ready for that swim, swim hard and swim long. The end result can be amazing – just don’t forget the indenpendent retailers along the way!

Promoting Independent Stores and Shopping Local

It’s hard enough to battle your racks against big box retailers such as Macy’s and Bloomingdale’s, but in the recent wave of our recession, discount retailers are also making a mark – and a large mark at that – with  savvy, boutique influenced shoppers. It’s not uncommon to hear a group of ladies bragging about their recent Michael by Michael Kors purchase from TJ Maxx or Tory Burch shirt from Loehman’s. Two years ago, however, they would have been bragging about their purchases from an actual boutique – maybe even your boutique.  Shoppers today, though, are grabbing outrageously insane deals at discount stores from brand names that they feel good about it. With no disrespect to The Limited or Jones New York, the anty has upped when it comes to what you can find at discount stores and shoppers are latching on.

So what can you do as an independent boutique to fight this trend? To start, you need to acknowledge it and accept it. So many boutique owners try and fight the reality of their customer’s habits, believing “they” will be the exception. However in our economy today, there are very few exceptions anymore. Even affluent shoppers with millions in the bank are changing their shopping strategies. The next step for you to do is react so that your customers remember why shopping with you is also to their advantage.

Support The Community & Small Businesses

There are some great local organizations within towns and cities across the country that support shopping local. If your community doesn’t have one, consider being the first to encourage this trend and talk with other small business owners to help you do this. The advantages of shopping local that need to be communicated with your customers include:

1. Protect Local Character & Prosperity – Every neighborhood tells a story. What’s yours? Remind your community of this story – history and present – and in doing so, remind your customers that among the only ways for your community to thrive is to support local businesses.

2. Linking Everyone Together - Local businesses do more than just sell products or services. They link people together, even customers themselves. Consider how your business can support your community by hosting community sponsored events, bringing neighbors together for a purpose, and more. If your business becomes a destination place for others, it will also become a destination to shop.

3. Increase Economic Situation – Did you know that dollars spent locally versus at national chains increase your communities wealth three times more than if spent elsewhere? By spending locally, you are investing in community jobs, local taxes, neighborhood improvement and community development.

4. Supporting Local Entrepreneurs – You don’t have to own a store to support a store. Remind customers that businesses built from entrepreneurs fuel the American economic crisis in a great way. They can do their part by shopping at them! As a business owner, you can support this, as well, by buying American made product and when possibly, locally made product. If you do this, make sure your customers know this, as well! Even if your whole store can’t support this trend, dedicate at least a section to it. Then promote it and sell it!

5. Product Diversity – Independent stores tend to have more unique products that chain stores or discount stores. Remind your customers of this. So what if they can get Tory Burch for 50% off regular price at Loehman’s? That’s NOT the point they should be caring about. Make them remember that shopping local gives them access to some unique, different, more limited edition product assortments while also supporting their community.

Talk To Your Shoppers & Lost Customers

It takes more than just understanding that your customers are shopping elsewhere to improve it. You need to communicate with your customers about why you care enough to tell them you need their support. A few ideas as to how to do this includes:

1. Arrange a Neighborhood Local Shopping Event - Get other stores together and promote a local shopping event. During your promotions, remind customers of all the reasons why shopping local is so important. Let them know that you know it can be tempting not to buy local but that you need their support for the entire community’s sake. Get your local radio stations, television stations, and papers to help create a buzz for this.

2. Promote Through Display – Speak to your customers by listing the advantages of shopping local in your store front window.  Get other local business owners to list the same advantages. Create your own pros and cons and “quietly” remind your customers of this by visibly placing them in a high traffic area both in your store and outside of your store.

3. Create a Buzz – Get your local press outlets to share in your support by creating news worthy stories to talk about shopping local and supporting local businesses! Newspapers, local magazines, community papers, local television stations and more are always on the look out for great stories to tell. This is certainly one of them! Talk to them to make this happen!

The reality is that independent stores are closing their doors across the country. We hear about big corporate buy outs and saving American corporate businesses all the time on the news, but what about us little guys and gals? Speak up rather than sit back to at least try and communicate this important message in your neighborhood. We are all in this together, but unfortunately many of us are closing our doors still.

What’s your story? We’d love to hear from you in the comment section below!

Supporting Independent Boutiques and Brands

As much as I want to see Bloomingdale’s, Macy’s, Target and other large retailers thrive, I much prefer to hear about the local stores in my neighborhood doing well. This is also true regarding brands that are independently owned and operated. Unfortunately, the reality is that independent retailers and wholesalers aren’t doing well for the most part. So what can we each do to help?

After visiting one of my favorite Chicago neighborhoods today, Old Town, I saw that many store windows were filled with “For Rent” signs versus product displays. Some of the best boutiques in Chicago are now gone! As much as I know this is our reality, I still couldn’t believe it. I just didn’t want to. It crossed my mind that rather than buying three sweaters recently at Macy’s on sale I could have bought one fabulous sweater at a now closed boutique AND more importantly supported an independent store. Shame on me! I remembered the local craft show I recently attended and felt a little better, as well as the neighborhood market I buy my groceries at even though I know I could get them for less at a chain store. Okay – so I am not that terrible. But I need to step it up a notch and I will. Promise.

It’s important for us to remember each other during these tough times. Don’t just sell your product / service, but shop it, too. We are all in this together and need to be there for each other in order to survive the challenges we will inevitably face as small business owners. Whether you are a retailer or wholesaler, you are also a consumer. We all are. If you are already supporting independent retailers and wholesalers, THANK YOU! But if you have fallen into the enticing traps of big box retailers with their sales and endless coupons, consider your shopping alternatives next time you need or want to make  a purchase. Then think about your community, your local store owner friends, the wholesalers you know doing it all on their own and your own business. Will your decision be the same? Having made a recent purchasing mistake, I can assure you mine won’t. Next time, it’s local and independently owned only.

Do you have ways you are keeping your business above retail’s shallow waters? Are you shopping local despite sales elsewhere? What are you doing to save money yet still spending money? We’d love to hear from you! Let us know!

Introducing Our Featured Boutique Section & SHE Boutique

Retail Minded is dedicated to linking independent  retailers and wholesale professionals together as well as providing educational support to both sides of the retail industry. One of the ways we are doing this is through a new section in our IN THE SPOTLIGHT section where we feature online stores. The feature includes a brief review by Retail Minded as well as has questions and answers provided by the store. It is our hope that other stores as well as wholesalers can learn from this feature in addition to being introduced to each other for potential business.

Keep an eye out for a more detailed section of wholesalers and designers IN THE SPOTLIGHT!

I am excited to introduce to you our first featured online store, SHE Boutique at www.shopsheboutique.com.

Offering fashion savvy women styles from around the world, SHE Boutique is a must stop shop for those who consider themselves in the know with fashion. Fashions are up to date and even ahead of what is in style, providing customers a great assortment of casual and dress wear. Their online boutique offers customers the opportunity to shop by designer or by category, making it easy to navigate and find what you need or what you simply must have. With apparel, accessories, handbags, swimwear and more available, those in the know of fashion need to know about this site!

SHE boutique has a storefront location in Highland Park, IL, as well as has an online store at www.shopsheboutique.com.

All answers provided have been answered directly by SHE boutique.

When did you first begin your business?

The first SHE Boutique was opened in Lincoln Park in June of 2007.

What inspired you to begin your business?

Proprietor Nicolette Prpa and original Buyer Lindsey Madigan are the faces behind this fashion mecca. Having met in Arizona in 2006, the pair combined their savvy business skills and their passion for fashion to bring their West coast flair and cosmopolitan taste to the city of Chicago in May of 2007.  The goal was to create a high-end “dream closet” for her customers, dressing them for a night on the town, or a casual movie night.  In fact, SHE is actually an acronym for She Has Everything. SHE strives to bring the ultimate shopping experience to each customer, so don’t be surprised if we remember your name!

How do you currently market your store? Please include all marketing initiatives you take to promote your business.

The grand opening of the original SHE location also marked the launch of a Marc Baptiste photo collection, and our Highland Park opening just nine months later was hosted by radio station 101.9 THE MIX.  SHE has orchestrated numerous fashion shows at various Chicago locales such as The Underground and Madame Tartine, and has also articipated in Fashion Tea at the Peninsula Hotel a number of times. The past two years, SHE has teamed up with GenArt and hosted two fashion shows highlighting new trends and merchandise. In June 2008, the Daily Candy hosted an event in honor of our one year anniversary, and July 2008 marked the official launch of the online webstore www.shopSHEboutique.com.  In January 2009, SHE Boutique’s Lincoln Park location hosted an event called The Influencer List, celebrating Chicago style and 4 of Chicago’s fashion influentials. We have been featured in several magazine publications. We currently have a page dedicated to some of SHE’s Spring arrivals in the February edition of People StyleWatch.

Who is your target market of consumers?

We strive to be the ultimate destination for savoir-fare fashion fans, catering mostly to the fashion forward consumer looking for a combination of sophistication and glamour through this-season trends mixed with classic pieces.  Our market consists of a wide age range, from young club-goers to established professionals to everyday fashion conscious women.

What kind of products do you primarily sell? This is not brands but just categories of products.

Dresses, Pants (ranging from denim to trousers), Tops, Handbags, Outerwear, Jewelry, Eyeware, Lingerie and Intimates, Swimwear, and Shoes (ranging from ballet flats and heels to knee high boots).

What are your top 5 brands that you sell? What are your top 5 products sold?

There are a number of designers which we always carry, but we cycle through many designers and each season has a quite variation – it’s difficult to say what our top brands have been overall.

The top 5 brands we’ve carried/sold most are: What Comes Around Goes Around, Obakki, Smythe, Black Halo, and Ya-Ya.

Our top 5 products sold are/have been: SWORD leather jackets, Ksubi jeans, Bloch London ballet flats, KAIN by Amanda Kain tops, and Rory Beca silk tunics.

Who do you consider your direct competition to be?

In terms of web competition, the web stores with similar level designers catering to a similar market are those such as shopbop.com and bluefly.com.  For storefront competition, we considered retailers such as Intermix and CUSP to be our competitors, yet with the closure of our city location, we face less competition in our suburban location.

How do you find new products to bring into your store?

Owner Nicolette Prpa visits tradeshows, designer showrooms, and fashion weeks in places such as Paris, New York, LA, Las Vegas, and Canada.  We keep an eye out for less-known, new and rising designers and brands. We also will feature local designers, often for a limited time only.

What trade shows do you attend, if any?

We visit ENK Coiterie, Designers and Agents, Rendesvous (in Paris), Intermezzo, Tranoi,

What is your biggest challenge as a retail store owner / manager right now?

Currently our biggest challenge is getting customers in the door to shop, with the economic crisis we’re going through, people are tightening their budgets and leaving their wallets at home all too

#1 Thing To Do To Compete Against Big Box Retailers

Clients often ask me what they can do to keep up with big box retailers, particularly in an economy when shoppers are more aware than ever as to why and where they spend their money. With stores such as Macy’s, Target, Dillard’s, Walmart, and so many others offering sales of up to 70% off, independent retailers are struggling to keep up. Every action they take when communicating with customers is crucial in whether or not they make a sale, however there is one step that I believe makes the ultimate difference, and that is customer service.

Giving More to Get More

While big box retailers may be taking more off their prices at retail, they are also taking more away from the customer service they once offered. Stores are cutting dollars in payroll, therefore customer service is few and far between on retail floors these days. In a recent visit to Macy’s on State Street in Chicago, it took me nearly five minutes to find a sales associate available to answer a question about a product for me. And forget getting an answer with a smile – I was delivered a quick response that left no opportunity for further inquiry. I ended up leaving Macy’s with no shopping bags despite some pretty amazing sales.

Had I visited a boutique that sold the same or similiar product, I am confident I would have received as much time and as much support as I needed while making my shopping decisions. I’m certainly not the type of shopper who likes my hand held the whole time by a store associate, however I do appreciate feedback and support when I request it. I even appreciate it without having to ask as long as it’s not overbearing. This said, I truly believe that customer service is the #1 thing boutiques and all other independent, small based retailers can offer customers right now – and always.

There will always be the type of customer who shops to save every penny no matter how little customer service she receives, however there will also always be the type of customer who wants support no matter where, why, or when she spends her money. As a retailer, you should strive to satisfy both customers by constantly evaluating how you offer customer service and why you should be flexible when delivering your customer service. Remember that what one customer wants is not always want another wants from you as a sales associate. For example,  when shopping at an apparel retailer, I do not like to be told that something will look good on me when in fact I know it won’t because I know my body and my style. That said, another woman may want this type of service and without it may not buy anything. As a retailer, you need to learn how to listen and react to your customers so that you can offer them individually the best service they each will need. Often, listening will come without words, though. Learn body language and shopping habits through experience and over time, you will be able to support your customers with the unique customer service that each potential customer walking through your door needs. But remember – some people really do walk in just to browse, so never be the “pushy” type that doesn’t let this happen, either. It’s all part of the pleasant customer service game.

A Step Further

Beyond providing unique customer service based on each individual shopper, you should also consider your store’s general customer service policies. Consider the following:

1. Return and Exchange Options

2. “On Hold” Options

3. Special Treatments

a. Beverages

b. Accessories to try on, such as footwear and hosiery

c. Digital camera for quick photo snaps of customers in a potential outfits so they can see for themselves – you can even email this to them if they want to show friends

d. Other one of a kind services catered to your store / product

By offering more than what your general big box retailer does, you are providing an experience to your customer that is often worth paying a bit more for. Consider all of these points and evaluate how you stand out among your local big box competition and then ask not only yourself, but your customers, what more can help you in your customer service strategy. Remember – every store is different and every customer is as well. Let each detail that shapes your store, your competition, and your customer also shape your customer service approach.