How to Sell to Department Stores
Time-starved men and women seeking a one-stop-shopping experience quickly adapted to the notion of emporiums like Macy's, Marshall-Fields, Dillard's and Bon Ton, mega-stores that supplanted all but the most tenacious mom and pop stores on the retail scene. Today's department store remains the ideal place to market your products because a single meeting can result in placement in stores around the nation.
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Things You'll Need
- USP
- Department store buyer list
- Samples
- Pricing structure
- Purchase order
- Attorney
- Manufacturer(s)
- Licensing agreement (optional)
Instructions
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1
Determine your unique selling proposition (USP)---the look, price, manufacture, quality and style that separates your product from the crowd---as you may have only a few minutes to communicate the benefits shoppers will receive over similar stock when you meet with department store buyers.
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2
Know exactly how much your idea costs to manufacture and package to ascertain the wholesale price of your product (add importation costs for overseas manufacturing). Consult retail experts to evaluate your industry's markup structure or use a rule of thumb that calls for multiplying the manufacturing cost by five to arrive at a retail price, then halve the figure to determine the wholesale price you'll offer stores.
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Use your buyer list to set appointments at corporate headquarters of department stores. Deliver the most comprehensive sales message you can muster, answering questions about delivery, pricing, bar coding, tagging, bagging and shipping before these topics are broached by the buyer. Bring samples to show off the workmanship of your product and demonstrate its features.
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Take your presentation to the next department store buyer on your list if your first stop bears no fruit, but once you strike gold, cancel appointments with competitors so you can focus on your first new customer.
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Keep cash reserves in the bank as department stores regularly pay for shipments of goods anywhere from 60 to 90 days after arrival. Expect to be asked for additional discounts (range is three to 15 percent) if the buyer orders a huge amount of stock in anticipation of your product's projected popularity.
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Become the ambassador of your product line the moment it arrives on the floor. Hang around the display or rack to get an early fix on how shoppers respond to your product. Talk with sales personnel and even if you must turn yourself into a stock clerk for the day, make sure your product is displayed nicely on the shelf or rack, as even high-profile designers are known to hover around their products when they debut.
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Tips & Warnings
If you have no desire to manufacture and are amenable to licensing your product, you'll enjoy royalty checks, but you could lose control over your designs so walk into such an arrangement with eyes wide open.
Investigate back-up manufacturers even if you're satisfied with your present fabricator as labor strikes, natural disasters and other events could close your factory without notice, damaging your reputation or ending your fledgling enterprise.
