Week 1 Flashcards
Who is a wholesaler?
the middleman between the manufacturer and the retailer
Define Vertical Operations?
strategy that allows a company to streamline its operations by taking direct ownership of various stages of its production process rather than relying on external contractors or suppliers. Design. Make. Ship. Sell.
Example: Zara / H&M / Banana Republic
What is the production process?
manufacture/ distributor + Wholesaler = Retailer
what are the Two Types of wholesalers? Explain them
In-House Rep: A person who works for one company or manufacturer, maybe on salary and commission
Agent: A person who represents a manufacturer or importer
Explain characteristics of this type of wholesaler: In-House Rep.
- Can only sell their own brands
- Entry point
- 9-5 work hrs
- Consumer-based approach
- Work with more established brands
- Stable and structured position
- Employee under an established company
- Agency / Showroom
Explain characteristics of this type of wholesaler: Agent.
- Sells multiple brands
- Works with several - distributors and manufacturers
- Grows and takes on any brand that fits your brand portfolio
- Consumer-based approach
- Often works with new brands ( risk )
- More qualified and risks
- Independent/freelance / Employee
- Agency/showroom
Explain a territory in wholesaling.
A geographical region that is assigned to the agent to represent the line. Western Canada - BC, Alberta, Sask, Manitoba and Yukon.
What are the 3 territories in Canada?
Western - Vancouver
Eastern - Toronto
Quebec - Montreal
Define a fashion line
Collection of styles offered for sale by one company
Fall/winter/ spring /summer
- Seasonal product
- Fall / Spring top of the fashion calendar / seasonal change
- Meeting minimum 4 times per year with buyers
Explain a sample
An example of each garment being offered for sale
Where are 4 wholesaling locations in Vancouver?
- Fashion Exchange/ Gift Exchange ( FX + GX ) 1951 Glen Drive
- Appointment only
- Non-branded items / pre-packs
- Cash and Carry - Yaletown
- Showrooms
- Decrease because of an increase in rent - East Van
- Parker Building - Gastown
- Beautiful buildings
Explain Cash and Carry. Please include an example.
a self-service wholesale outlet where customers pay for their goods (Cash) and take those goods with them (Carry).
example: Truck wholesalers or jobbers sell and deliver directly from their vehicles, often for cash.
Explain a Showroom
A place to display samples, maybe an office or hotel room
Explain Road-trips in Wholesaling?
The agent takes samples to different cities/towns to attend a tradeshow, market or the store itself.
- Critical to an agency’s success
List 4 reasons why road trips are critical to a wholesaler’s success.
- Get to visit retail stores we dont often see
- Merchandise display
- Demographics
- Popularity
- Competition - Buyers/Owners Appreciate the visit
- Builds on relationship
- Story representation - Orders are larger
- Better representations of product
- The more product in store the more sold - Travel lets us explore other areas
- Find new stores
- Boutique business
Explain cold calling
Process of calling new potential customers to introduce your line and make an appointment. This is the easiest most efficient way to build your customer base. Keep a cold call log.
Cold call strategies = grow your customer base
List 4 tips for cold calling
- Overcome your reluctance
- Do your research:
- reasons? Why? Pricepoint? Values? Merchandise? Product Fit? Call other reps? - Make gatekeepers your allies
- Keep connections with full-time employees. Valuable in-store info. - Stay Focus
- Brief Introduction of the product without giving a full pitch. Set up an appointment and follow up
Explain Exclusivity
Exclusivity is important to keep in mind, keep 1 customer per area, as a wholesaler choose wisely who should sell your product. You can pull out of your stores and sell to others if needed. Stores also desire exclusivity too and often choose what product they want from your selection.
Define Customer Lists
List of customers you do business with, usually divided into provinces.
- Current + potential Customers
- Divided by provinces
Explain Order Form
forms used to write orders in, triplicate, one copy to the manufacturer or supplier, one to the customer and one for you to keep. Order books are usually provided by the manufacturer/supplier. Contact that binds the retailer to orders.
What are some things on an order form?
SKU, Style, Description Sizes, Colors, Qty, Pricing ( wholesale+Retail)
Brand - Date
Signature/contract
Triplicate ( wholesaler + Retailer + Manufacturer Copies )
Delivery date
Billing and shipping location
