Archives: June, 2008


June 30th, 2008

Shopping with the wife this weekend we found ourselves at Walmart pushing a cart aisle by aisle. While many people are opposed to Walmart’s market share I do find it fascinating that in the face of roughly forty years Walmart has become the worlds largest retailer. I highly recommend reading Sam Walton’s book, “Made in America” as the story of Walmart growth is enough to inspire any entrepreneur.

As we were walking through Walmart shopping for necessities I noticed the tremendous amount of “Private Label” products offered. From Dog food to soda pop the Walmart name is branded on several items in fact through further research I found out that approximately 40% of all items sold in Walmart are private labeled.

What is private labeling?

Private labeling is simply the act of contracting with a manufacturing company to produce your own line of products with your chosen name brand. There are literally hundreds of manufacturers who are willing to produce a single product or complete product line thereby enhancing your business image and strengthening your relationship with your customer base.

Why would you want to private label?

Simply put, There’s no better way to support your store brand than to sell products bearing your store’s name. Your brand can create recognition in your geographic market whether your plans are to market locally, regionally, or nationwide there is a private label solution available.

Some examples of the more popular products which are private labeled include lotions, skin care products, cosmetics, perfumes, jewelry, apparel, home décor, snack foods, candy and coffee.

Here are a few examples of private label manufacturers who deal in small quantities:

Grafton Cosmetics – offers dedicated sales advisors who will walk you through the very necessary steps to guarantee that the development of your brand meets your business goals and your marketing strategies. Grafton Cosmetics offers a total private label solution from graphic label design to product manufacturing. Based in Florida - toll free 800-662-5387

Mister Snacks - offers dozens of snack lines for small to large retail stores, regional distributors, large supermarket chains, cruise lines, colleges, promotional campaigns and everything you can imagine. Let their creative artists help you design the look you want or you can provide your own logo. Based in New York 716-691-1500

Style Source Inc - Private label apparel manufacturer offering dresses, skirts, tanks, wraps, sarongs, pet apparel, maternity apparel and dozens more. Able to provide specific size ratios, labeling, packaging and many other value added services. Based out of North Carolina 910-399-2288

Autocrat - In business since 1895 retailers can develop a partnership with Autocrat’s private label coffee program.. Autocrat offers selling support that is committed to championing your growing business with package design, brochure assistance and growth incentives. Based in Rhode Island 800-288-6272

Nutricap Labs Offers private label solutions for the supplement / vitamin industry which will offer the ability for your business to build brand loyalty among your customers. Superior products at the most competitive prices offering cutting edge label printing and packaging design services. Based in New York 800-494-6154

Companies listed above are a sampling of manufacturers who are ready to produce your products under your business name.

For more information the Wholesale private label industry offers an annual trade show which is coming up August 16-18th in Chicago. More information can be found at the PLMA website or by calling PLMA direct at PLMA 212-972-3131

Private Label Fun Fact - Walmart’s, “Ol Roy” dry dog food is the Nations second best selling behind Purina. “Ol Roy” is exclusively manufactured by Mars, Inc., owner of Pedigree, Sheba and Whiskas pet foods. Ok, maybe not necessarily fun…But interesting-

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June 22nd, 2008

If you have been following my posts here on the WholesaleU Blog and ToptTenWholesale you probably know by now that buying wholesale liquidation merchandise in the form of pallets and truckloads can be very profitable for your retail or auction business.  Buying liquidation merchandise is a great way to source top name brands from some of the largest Big Box retailers.

I want to address the issue of  “Brand Restriction Agreements” for end resellers that must be signed and adhered to prior to purchasing liquidation merchandise. If you are buying wholesale liquidation merchandise with the intent to profit from reselling then you are the “End Reseller”.

When purchasing wholesale liquidation merchandise direct from a department store or a contracted reclamation center you must make sure that you follow any reselling restrictions including brand protection instructions.

Why is this a big deal?

All written contract restrictions share one common theme that you must take very seriously….”End User Returns”.  Lets say you buy a pallet of DVD players and you are able to offer them to your customers at 50% off of original retail. Sounds like a great deal, huh? What happens when your customer buys a DVD player from you at a great price and then attempts to return it to the original store for full retail credit? The store will come back after you with fines and/or a lawsuit for breach of your reselling contract.

You must take all precautions to avoid this from happening. Delabaling and defacing merchandise will protect you as a reseller of liquidation merchandise. If you follow all of the original stores guidelines for reselling there should be very little if any problems with store level returns.

Make sure prior to buying that you carefully read all written requirements making sure that you can fully comply with reselling terms. You will be asked to sign a contract with your merchandise source before a pallet or truckload will be sold to you. This is one area which you should not take lightly.

Some retail stores will not allow you to resell liquidation merchandise within a a certain mile radius of an actual store. For example Kmart liquidation merchandise cannot be sold within a 50 mile radius of an actual store (Kmart). If you live within a large city this could pose a problem as most larger US cities do in fact have a Kmart or Super Kmart.

To give you better idea of what an agreement might look like I am going to list a few of the requirements for reselling liquidation merchandise purchased from the Target Corporation. Target is a large chain department store, which operates stores throughout the United States selling general merchandise, electronics, home decor, apparel, jewelry and in some states grocery items.

Delabeling and Defacing Agreement for Target Salvage Merchandise:

  • All warranty cards to be discarded and destroyed
  • If warranty is included with product information, the warranty section must be removed with exception of sewn in labels
  • All tags of clothing, both Target and licensed brands to be removed with exception of sewn in labels
  • Black out all sewn in labels
  • Discard all hang tags and tags
  • Remove all Target brand products from boxes and packaging from the Target box unless packaging is necessary for the product
  • Black out all UPC codes
  • Black out all reference to the Target name

You can see from just a few of the above requirements that there is work involved in reselling liquidation merchandise. Whether you buy direct from a liquidator or buy from the actual store you must follow all reselling requirements. Again, make sure you fully read and understand all reselling restrictions before buying a pallet or truckload of liquidation merchandise.

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June 17th, 2008

Never underestimate the fashion buzz and eye-grabbing power of a celebrity’s fashion, accessories and footwear designs.

Famous faces of films, TV and music don’t always have what it takes to design women’s strappy sandals, sundresses, casual dresses good enough for work or weekend knock-around capri pants and T-shirts. But they sure do attract attention, copycat clothes and media. These days, celebrity designer lines also come at ALL price points … not just up-market and high-priced lines.

Sarah Jessica Parker’s Bitten. Sex sells; Sex In the City sells even better to fans of the TV show (now a major film) in which Sarah Jessica Parker plays New York City fashionista and lonely hearts advisor Carrie Bradshaw. Most unexpected was the price-point and retail chain through which SJP decided to market her very own Sex In the City women’s wear style — the Bitten brand. All those puffy skirt and fitted bodice sundresses, sophisticated cut-off pants, midriff T-shirts and the shoes. Oh, those shoes! (Parker held onto her high-priced Manolos from the TV show wardrobe mistress for SIX years.) Sarah Jessica Parker negotiated in-store boutiques for her Bitten design line with Steve and Barry’s – the young and casual retail chain known for cut-rate logo T-shirts and discount priced tween, teen and 20-something clothing. All part of Parker’s ethic: On A Budget But With Style.

Rental Designer Handbags are another buzz point where art (Sex In the City film) imitates life. If you see the film, listen for Carrie Bradshaw’s on-a-budget assistant who points to her designer handbag and says, “It’s mine till Tuesday, baby.” One such rented chic site is BegBorrowOrSteal-dot-com.

Amanda Bynes Goes “dear.” Another star-powered fashion line called “dear” distributes through youth apparel, shopping mall-sited Steve and Barry’s, noted above. Amanda Bynes developed her “dear” line with lots of horizontally-striped, plunge-necked, push-up sleeve sweaters, in school bus yellows and robin’s egg blues. Bynes stays en-“dear”-ed by black, stretch leggings (the Spandex look but looser) and high, black stiletto heeled shoes.

Lohan Likes Black Leggings, Too. The Lohan line, called 6126, for reasons we cannot divine, hit stores in June 2008. Her stretchy black long leggings feature slit or zipped cuffs to fit over very high strappy heels.

The Cruz Sisters do it Shapely. Star Penelope Cruz with sister Monica built their MNG line of women’s wear for the huge Spanish chain store Mango. Think Vintage Clothing based on the vintage styles pulled from Las Hermanas Cruz wardrobe – satiny dress fabrics; stretchy jersey-like fabrics for sleeveless unitards, and a simple skimmer dress with beadwork at the scooped neckline. Oh … and black. Lotsa black.

Bubble Skirts Times Two.J-Lo, Jennifer Lopez, and Teen Vogue designer turned fashion designer in her own Lauren Conrad Collection, both feature Bubble Dresses. Whether strapless or slung over one shoulder, these celebrity bubble dresses are short hemmed, poofy and either shirred or drawn in over the hips. Jennifer Lopez features hers in “Just Sweet,” which targets a higher-priced line of women’s clothing. (The bubble silhouette doesn’t mix with weight-loss wannabes; skinnies only.)

Natalie Portman Does it With Attitude. Actress Portman is well known for her vegan and animal-lover lifestyle, from home furnishings (no rainforest mahogany or leather couches) to fashion. No surprise that Portman designed the Te Casan line, featuring very high, spindly-heeled, open-toed, cross over the toes sandals. Bright colors. Leather free. Te Casan is billed as “cruelty-free footwear.”

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June 7th, 2008

 

Everyone can relate to the seeing a movie and walking away either ready to cry or put on a cape and save the world. Those of you that are old enough to remember the movie “Rocky” with Sylvester Stallone will understand what I am talking about.

Spending money can be a real emotional experience for many people.  When shoppers buy based upon an emotional feeling they will spend more money.

Ok, for fear I am loosing some of you lets look at some examples of emotional spending:

Buying a new car - Taking that test drive…ah that new car smell, the acceleration and the fact that you look very cool in a new ride! Pure emotion. The dealership shark salesperson understands that if you are involved emotionally…a sale will take place. You will hear him say things like, “How did it FEEL driving down the freeway” or “Wait until your friends see you in this ride!”

Buying an engagement ring - This very act has emotion written all over it. The buyer will typically experience FEAR that if a large enough diamond is not purchased the receiver will not feel LOVED. When love is involved, money is never an issue….right?

The above examples are large purchases and may be a bit extreme, but emotional spending occurs with smaller purchases as well. If you have a retail store of any size you should use the power of emotion to increase sales and cash flow.

“Ok, makes sense…how do I implement this emotional marketing in my store?”

I am so glad you asked…

Retail advertising phrases like, “Inventory Reduction” or “Final Markdown” create a sense of urgency and emotion in retail shoppers. Combine this emotional advertising  with products at a great price and watch your sales go through the roof!

 

Large Big-Box retailers will heavily advertise extreme discounts to bring shoppers through the front door. I have been in large department stores and watched the sales staff open new cartons and cases of merchandise that is already marked “clearance”.

Did you catch that? Here it is again…new retail merchandise already marked down before it hits the shelf!  Why? Consumers want  to feel as though they are saving money. Happy shoppers spend more!

I would suggest that you maintain a particular area in your store for Liquidation merchandise…ongoing. People love to save or feel like they are saving money!

I like the phrase: emotional retail marketing…as a retailer you should as well. Appeal to the emotional side of your customer base offering products at unheard of pricing and your average sales ticket per customer will increase.

When ordering inventory plan on ordering merchandise to liquidate as apart of a liquidation promotion. Ask your wholesaler if they are “closing out” any merchandise or better yet find a wholesale liquidation company to start buying from. Bring merchandise into your store with the intent to liquidate it. Wholesale liquidators specializes in selling name brand closeout merchandise at a fraction of the original retail and/or wholesale price!

Sourcing merchandise from a liquidator allows you, the retailer, to stock your clearance shelves with fast selling, low priced merchandise. Make it a habit to buy merchandise on a regular basis and hold “Final Markdown” sales events.

Get emotional!

Your customers will love shopping at your store!

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