Most stores place a high value upon just such relationships and upon buyers who are able to achieve them. Good vendor relations, to a far greater extent than good merchandise selection alone, contribute to profitable operation.
It pays to learn the ground rules for dealing with resources in a fair, friendly, and businesslike way.
Evaluating Resources
A resource is valued by a store in terms of both the amount of merchandise it supplies and the profit potential in that merchandise.
Buyers usually maintain vendor diaries-brief summaries of their dealings with each resource each season. If the Controller’s Office or your predecessor has made no such record, draw one up from the purchase files for each resource of any importance to your department.
Show:
- total purchases, year or season, at cost and original retail
- returns to vendor, if any
- initial mark-on percentage
- advertising allowances granted, if any
- markdowns taken, if you can trace them readily.
Also to be considered are such factors as:
- the prestige of the line among the store's customers
- reliability as to delivery, including service on reorders
- reliability as to quality; presence or absence of defects; promptness or sluggishness in adjusting complaints and making repairs
- service given on stock counts, pre-ticketing of merchandise, talks to salespeople, etc.
- any other details of the operation that can be identified with respect to the vendor's merchandise.
As a general rule, but not necessarily an infallible one, long-time resources, major or minor, usually show a fine record on all points of importance to the store. If not, the relationship could not have endured for so many years.
Similarly, major resources, those on whom a department depends for a considerable share of its merchandise, usually have fine records, too.
The store could not have bought heavily and profitably from them if their merchandise and policies were not attuned to its needs.
Relationships with such resources should not be disrupted arbitrarily. A common error of newly appointed buyers is to sweep out many of the previous incumbent's resources and to start fresh. The resources are the store's - not the previous buyer's nor yours.
Nevertheless, there can be reasons to change. A resource sometimes misses fire in its styling; its standards may slip; its prices may move too high or too low. Similarly, the store or department may move toward different target customers. Or a new and better resource may enter the field.
For these or similar reasons, you may want to give up a well established resource. As a new buyer, before deciding to drop a major or long-time resource, marshal your facts and opinions and check with your merchandise manager or the previous buyer, if she is available.
You may be completely right, or you may have overlooked some vital point. It pays to investigate before disrupting your store's relationship with desirable resources.
Keep Yourself Free
Even more important: You cannot afford to put yourself under obligation. Most store managements are very firm about this - that, no matter how much or how little business you place with a resource, you should not accept excessive gifts or hospitality.
Some managements require that entertainment by vendors be reciprocated, with the cost placed on the expense account. Others simply say: "Avoid accepting anything substantial".
Possible guide: Accept nothing beyond what you might give your dinner or weekend hostess.
Possible "out": If a resource's salesman is very insistent upon wanting to treat you to dinner or lunch or theater tickets, your best excuse is the simple statement that you do not have the time.
If a gift is pressed upon you, and it is difficult to return or refuse it, try a gracious thank-you, with "But please don't do it again. It isn't at all necessary, and my management would certainly not approve".
Program Merchandising
Program merchandising is long range planning jointly underwritten by a resource and a store in behalf of the resource's line, initiated usually by the store.
Plans are made in collaboration with the merchandise manager, the store's sales promotion executive, and a principal of the resource. Points covered include:
- record of what the store "did" with the resource the season previous
- an estimate of sales the store feels it can safely do with the cooperation of the manufacturer
- this plan includes stock to be carried by the store
- promotion and display planned by the store, even to advance sketches of ads, of windows, of interior displays
- merchandising, delivery, promotion, and other helps to be given by the resource.
From your standpoint as buyer, you generally find that the store and the resource with such a plan can each do more for the other because they have together planned and committed themselves to a program in advance.
If you think program merchandising would be desirable with any of your resources, speak first to your merchandise manager. He will work with you in initiating and negotiating the program with the resource and with the top management executives of your store.
Reaping the Benefits
Prominent among the intangibles that contribute to your success as a fashion buyer is your ability to establish good working relationships with your store's resources. Vendors go to great length to cooper ate with buyers who come to market well-prepared yet willing to listen, and who are courteous but firm in their dealings. Profit for your store, and prestige for yourself, are among the fruits of good vendor relations.
