Another point to
ponder. Retail merchants have computerized the bulk of their
operation; thus allowing them greater ease in tracking those
things needed to survive in a high-tech, sharply competitive
retail world. Computerization gives them the ability to
scrutinize with crystal clear detail in real time such
operational details as gross margins, turnover, sales per square
foot, sales per lineal foot, sales per square inch, advertising
costs related to cost to sell factors, and on and on. The
computer is a wonderful tool for corporate retailers. I can well
remember the RTC Factor (resistance to change) when the first
computerized inventory tracking system was installed in the
first store of the chain I was with. We had all watched
countless times as inventory services had came into the units to
inventory the stores, carrying their small computerized units
and inventorying a forty-foot gondola in twenty minutes when
that same gondola would have taken us two hours via the old
paper method, but little did we realize at the time just how
streamlined the computerized system could be, and what it would
save in labor costs alone, not to mention paper costs and
postage. But the one thing it took forever to understand was the
computer's keen ability to be totally objective, to immediately
spot trends and store them, thus making the buyer¹s job much
easier. If the computerized sales showed an item was moving, for
example, ten items per week, and paying only a 30% margin, it
was quickly identified and dropped from the inventory. There
were an are still exceptions to this, such as a riding mower
that is a large-ticket item, or a product that some vendor had
subsidized the advertising program through a cooperative
agreement, but it would almost invariably catch up with new
products struggling to make their niche in the marketplace.
One final thing that
really irked me during my buying days. If your product has stood
the tests of positioning, the demographical work and market
research is completed, and you are ready to launch into the
marketplace, don't make the mistake of mailing out samples to
prospective corporate buyers. As a buyer, I would routinely
visit with 300-400 representatives of various products in the
course of a normal week. Those who presented via postal service
were seldom read, if ever. Unfair, probably, but the prevailing
thought was and still is that if it is good enough to sell in
"my" chain, it is good enough to be presented in
person. Anything less than that is substandard, and it greatly
diminishes your opportunity to tap into that particular market.
Another thin g you should consider also is that most inventors
do not make really good negotiators, they are intrinsically tied
to their product very closely, and don't handle rejection very
well. Do not be afraid to retain the services of a competent
professional, but first, of course, ask for references of
companies he deals with on a routine basis, and what his or her
background qualifications are. Chances are good if they cannot
sell themselves to you; they can't sell your product line into
the marketplace. As a former buyer, I have found that former
retail buyers and intelligent women make the best
representatives you can use, as the former buyer can identify
with the prospective buyer from a unique position, and there are
increasingly more women being placed in corporate America's
buying offices.
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