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Retail SMART |
How
to Shop a Trade Show |
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By:
Dennis A. Conforto
Chairman & CEO of A-Z Media Group, Inc. |
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Shopping a trade show is one of the most important events in a scrapbooking retailer’s year. Months of time and effort should go into the planning of this event. The results of that planning will, to a large degree, make or break your bottom line as an independent scrapbooking retailer.
The function of buying at any retail store is divided into three operational categories they
are:
1. Items dropped based on poor performance,
2. Items reordered because of solid performance, and
3. Items added to new selection to replace poor-performing merchandise.
Identify Poor Performing Items
To do this, first identify those items within the inventory lineup that no longer perform. Performance is based on a combination of data, rate of sales, margins and turn rate. A minimum standard of performance must be set for each product category. Of course, items are not only dropped by retailers, but manufacturers as well. Poor-performing and manufacturer-dropped items must be cleared out of the inventory quickly. It’s important to remember that nothing is more important for you as a retailer than getting rid of dead inventory as soon as possible.
Reorder Buying
Reorder buying is more of a mathematical equation. This function helps you to keep winners in stock at all times to insure that sales remain as high as possible on those products. Reorder buying is one of the functions directly related to profitability.
Selection Buying
Selection buying for new merchandise is all about the discipline of merchandising slotting. By this, I mean that there are only so many slots to fill with in categories like stickers, paper or embellishments. As a retailer, you have to choose which stickers you will carry, as you cannot and should not carry them all. Merchandise slotting prevents duplication within a manufacturer and among manufacturers.
Learning when and how to drop items that don’t perform, how and when to reorder merchandise that does perform and slotting your selection has more to do with real retail profits than any other thing a retailer can do.
So when you go to shop a trade show, remember: know what you're going to drop, know what you’re going to reorder and prevent yourself from over buying by duplicating your buys...
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