Why some retailers get special treatment by suppliers and you don't

Why do only some retailer secure special benefits?

Last week I wrote how retail is about ‘breaking bulk’. It is worth remembering that the supplier of that ‘bulk’ has a vested interest in the retailer’s success at turning that bulk over.

The big boys in retail are very successful at tapping into their supply chain for support, information and most importantly, MONEY. The following are examples of tactics followed by smart retailers, but there is no reason why anyone could not tap into the same resources.

  • Slotting: Being paid to make shelf space available for new products.
  • Allowances: Receive marketing funds to be spent on things like signage, advertisements.
  • Co-operative advertising: Jointly advertise (e.g. top-and-tail style ads) where both parties feature and both parties pay. (Think how Harvey Norman advertises leading brands.)
  • Performance Incentives: As you receive already with News Partners. You can negotiate similar with other suppliers.
  • Fitout Contributions: Landlords/developers may incentivise retailers to achieve a certain level of fitout during major developments.
  • Non-price discounts: Here is a list of 20 things you can negotiate to improve your ‘price’ without it being simply a lower price.

Not to mention the simple fact that almost every trade rep has ‘something’ in their boot that they can hand out to clients to support their trade marketing. From samples to collateral to additional stock to the ability to connect you with someone else who may be able to assist.

Smaller/independent retailers may think that they can’t get those benefits.

But that is not the real reason why you don’t get it. The attribute of the businesses who happens to negotiate these benefits has nothing to do with how good they are as a retailer. How do you do it?

It boils down to a good relationship with your representative!

That’s it: simple human relations.

Because people LIKE dealing with people they LIKE.

It does mean you have to invest time in the relationship of course. This means leaving the counter – maybe even leaving the store and investing in one-on-one time with the rep.

Dennis

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