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Attention Home/Gift & General Merchandise Vendors: How would you like to reach over 8,000 apparel retailers interested in new categories who don’t attend non-apparel trade shows? offpriceshow in Business, General Discussion, Helpful Tools, Introductions, Issues In Search, Liquidation Merchandise, Must Visit..., Off Price, Sales and Marketing, The Presidents Lounge, Trade Shows, Uncategorized, Wholesale Industry, Wholezilla.com March 16th, 2009

Many of the intended readers of this blog may currently be participating in the ASD/AMD Show in Las Vegas this week (3/15-18).  I wish all of you the greatest success at an event that continues to be critical to general merchandisers in the US and beyond. For those of you interested in developing new business, as you may know already, there is a growing demand for home/gift, general merchandise and new categories by apparel retailers who are looking for that one niche product that will get new customers into the store and allow their apparel lines to sell themselves. Accordingly, our team at the Off Price Specialist Center is launching a new salon area at our August Off Price Show called “HOME.”  HOME @ the Off Price Show is designed to be a home/gift, gen merch and new product “incubator” for apparel retailers looking to add more excitement at their stores. It is a ground level opportunity for vendors in these categories to make a significant impact at the largest and perhaps ONLY Off Price Show in the apparel industry.  Our apparel “jobbers” or off price specialists (the newer, more politically correct term) have become known as heroes to struggling apparel retailers who have found excellent values at our semi-annual trade show – which is the offical Off Price Show of the multi-venue/concept Las Vegas Fashion Week. Home/Gift, Gen Merch / hard goods are not new to the Off Price Show.  My good friend Larry Manus (who is at ASD this week) has been bringing his hard lines to the Off Price Show since its inception in 1995.  “I meet entrepreneurs and savvy retailers who already got the message about the need for diversification.”  His New Jersey-based company, United Auction LLP, has been wildly successful at our show in hard goods, as has St. Louis off price specialist CWC Inventories.  And as long ago as 2003, when I was first involved with the Off Price Show as its outside marketing agent, I met candle and gift vendors in the second last row of the show who were doing cartwheels because they were writing orders like crazy from aggressive retailers looking for new products. Now that I have been more directly involved with the show for the past 5+ years, it doesn’t surprise me that there is a great fit for home/gift and gen merch vendors at Off Price.  Our concept is known to many of our seasoned buyers as “the treasure hunt” because you are sure to find 1-2 new products (not on your pre-show shopping list) that could make your whole season or year.  The show is not arranged by category because of the nature of the off price business.  Our vendors carry either all categories or they specialize in one or two, plus they may come across an opportunity in a new category or product line that they know (based on their years of experience) could be a winner for their retail customers or prospects.  For Home/Gift, Gen Merch and new category vendors, we are making a more centralized HOME salon area to accommodate our largest retailers (who serve on our retail advisory board) who have been begging us for this kind of centralized space so that they can go back to their offices and – mind you they are all CMOs, CEOs and other executive types) tell them about the great values they found in bed & bath, table top, home decor, gift and other non-apparel categories that could be real winners for their chain. I invite all who are interested to contact me at the Off Price Specialist Center at either 262.754.6910 or dbrowne@offpriceshow.com.  I feel that this is an exciting opportunity for these vendors to develop new business that happens right on our show floor.  If you need further assurance, talk to my good friend Jason Prescott, President of JP Communications, whose TopTenWholesale.com is an official sponsor and media partner for the Off Price Show and has been since 2001 (I think).  Jason is a real visionary who’s very big on building bridges online for wholesalers and retailers, and takes advantage of the onsite connections at the Off Price Show to transcend this message across apparel retail lines.  Thanks, Jason, for this wonderful blog and for all the great things you do to support our respective industries.

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New Executive Director Named at Dignity U Wear susette in Off Price, Wholesale Industry January 27th, 2009

            Jacksonville, FL (September 22, 2008)—Robert S. Bryan, Jr. has been appointed as the new Executive Director of Dignity U Wear, the locally-based, national nonprofit that provides brand new clothing to men, women and children in need. The announcement was made by T. Parker McCrary, Chair of the Dignity U Wear Board of Directors.

 

            Bryan comes to Jacksonville and Dignity U Wear from

Raleigh, NC where he served as President of the Eastern North Carolina Chapter of the National Multiple Sclerosis Society for the past five years. For the 12 years prior to that, he held various Administrative positions at

North Carolina State University, including Director of Student Development and Associate Vice Chancellor & Executive Director of the NC State Alumni Association.

 

            “Bob has a strong track record of leadership and has successfully grown the organizations he’s been involved with,” said McCrary. “He has great vision, knows how to develop people and build innovative, efficient organizations. He’s the ideal person to take Dignity U Wear to the next level. As we grow our business, increase sources of funding and generate additional revenue, we will have the ability to expand our reach and help even more people. We have high expectations of what Bob will be able to accomplish.”

 

            Bryan holds a  Bachelor of Arts/Philosophy degree from

North Carolina State and a Master of Arts/Sports Administration degree from

Ohio University.

 

            Dignity U Wear was founded in 2000 and distributes brand new clothing it receives from manufacturers and retailers through a network of 300 recipient nonprofit agencies in 30 states. Nationally, the organization has provided more than 4.4 million pieces, valued at $71 million, to more than 354,000 people. Locally, the organization has donated clothing valued at more than $20 million through 70 Northeast Florida-area nonprofits.

 

            The nonprofit does not receive any city, state or federal government grants or funding; they operate exclusively on private donations from individuals, corporations and private foundations. Volunteers help process 100% of the incoming inventory, providing 95% of the time and labor necessary to accomplish the task.

 

            For more information about Dignity U Wear, visit www.dignityuwear.org or call (904) 636-9455.

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Rack Jobbing As a Wholesaling Alternative Robert Cyr in Sales and Marketing, Wholesale Industry August 20th, 2008

Whenever you go into a supermarket or drug store and begin looking over that tub full of DVD’s on sale, you can see that these are generally movie titles that had already done the circuit of theaters, followed by becoming the video rental titles from stores and online. What you may not know is that you’re more than likely looking over merchandise that’s been put there by a rack jobber.

What’s a rack jobber? It’s a wholesaler with a particular niche product who stocks retail outlets with those products but maintains ownership until a sale is made. In essence, those goods are there on consignment. The jobber checks inventory and restocks the shelves on a regular basis. At that time, the retailer pays the wholesaler the wholesale price on the merchandise that has gone out the door, keeping the agreed-upon amount of profit.

What the retailer gets out of this, most importantly, is that he does not pay the wholesale price up front but only after the merchandise is sold. What the wholesaler gets is the ability to maintain what is, in effect, a small retail outlet of his own within a very favorable sales environment , and he does it without having to pay for the real estate taken up by his “store.” He does not have to carry the cost of clerks at his “stores” to process sales; the host retailer provides that.

There is no reason for a store owner or manager to turn you down when you offer to place merchandise free of charge. There is no risk involved for him, therefore it is not hard to get you initial accounts setup. I will caution you in one area and that is shrinkage or theft. Make sure to advise the store owner that he will be invoiced and responsible for those items that are stolen. Theft is an inevitable occurrence when retailing and it will affect your rack jobbing business. 

Multiply your racks over a number of retail outlets, and sales figures will soon mount up – assuming you have a good product suited to rack jobbing and you contract with good host retailers. Once you have a good number of stores setup you will want to service them on a weekly or bi-weekly basis making sure empty displays are filled and slower moving items are replaced with other merchandise. 

Chances are, you’re not going to come up with a new idea for rack jobbing that drug stores or supermarkets haven’t seen; they already handle DVD’s, books, clothing, novelties, and more. But genius ideas for rack jobbing can come from putting two separate ideas together, like dogs and books, for example: Stock books about pets and pet-centered magazines in veterinary offices.

Here are a few more ideas to get you started:

• Jewelry & watches at hair and nail salons
• Sell games at liquor stores…Who does not like to play games while drinking?
  
• Impulse novelties at convenience stores and gas stations
• Handbags or purses at apparel stores

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Being Sensitive to Brands Robert Cyr in Sales and Marketing, Wholesale Industry August 1st, 2008

As a retailer, you work with a lot of manufacturers, and a lot of brands. Each manufacturer has their own brand image and their own ideas on how they’d like to see that brand represented. While their brand might be a useful sales tool, sometimes brands can be more like an ego which needs close attention.

Using the brand/ego analogy sometimes confusing manufacturer behavior becomes far easier to empathize with. Many manufacturers will employ a MAP policy (Minimum Advertised Price) and will often enforce this policy to the extent of terminating your ability purchase and resell their products all together. They [manufacturers] feel their product is worth a certain amount and it frustrates them to see it sold for a lot less by everyone, so they make it a rule. Manufacturers may also have an IMAP policy (Internet Minimum Advertised Price) as web retail stores interact with one another in a much different fashion than geographically separated physical stores.

In addition to MAP and IMAP policies, there are some manufacturers who limit what sales channels they’ll allow a retailer to use. For example, some prefer that you not list their products on Amazon.com. Why? Unlike an ordinary comparison shopping engine (CSE, e.g. Bizrate, Froogle), where the user is redirected to your unique shopping site, Amazon handles the entire transaction. CSE’s could be compared to a mall, where Amazon is more like a garage sale.

A manufacturer may not like seeing their brand and product tossed in with the rest of the junk in the garage, with no respect or individual consideration. Also, while a CSE allows you to sort by price, it usually can sort by store rating as well, helping assure the customer the best purchasing experience possible.

As a web retailer you should understand the above concerns and note some manufacturers will be more sensitive than others. It is important to keep track of the rules you’ve agreed to follow for each of your manufacturers. If you don’t cater to the needs of their brand, then you could easily find yourself cut off! You’ll be searching for replacement products to fill that gap in your offering, and may have hurt your reputation with other manufacturers in the process!

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Private labeling not just for the big box retailers Robert Cyr in Sales and Marketing, Wholesale Industry 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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Liquidation Merchandise – Reselling Restrictions? Robert Cyr in Liquidation Merchandise, Wholesale Industry 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.