By the Books
The questions you don't ask may be the ones that sink you
By Cinda Baxter -- Gifts and Dec, 5/1/2009 12:00:00 AM
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Cinda Baxter |
Last May, while perusing a booth at the National Stationery Show, I overheard a conversation between two storefront retailers and a letterpress artist whose invitations album was under consideration. Niceties were exchanged, complements made, and cursory questions asked.
Soon, a discussion of price ensued. The number was high, leading to a whispered negotiation between the two buyers. Decision reached, order placed, the women left, confident the album was a good gamble.
And a gamble it would be. As the printer responded to my questions next, it became apparent that there were potential problems behind the pretties: brides could not opt out of the block of promotional text on the back of invitations, home studios could carry the line at a discount, and she had no immediate plans for adding designs to the rather thin offering, because, quite frankly, she was "very busy." I'm not sure what made me nearly speechless — her lack of decorum or her attitude.
Beautiful designs only are half the story when a buyer contemplates new additions; just because a line looks great on a booth wall doesn't mean the vendor will be a good business partner — and that's exactly the relationship you will embark on with the people behind the pages. As important as it is to interview potential employees, it's just as important to interview potential providers.
How do you avoid bringing in a book that won't pay it's way (or worse, make you pay dearly)?
To simplify the process, I created a Custom Albums Worksheet. It has evolved over the past 15 years to include technological changes and the influx of smaller, boutique print operations — both of which make the custom paper terrain tricky to navigate. Following are some questions that populate that document.
Nice to Meet You
It amazes me how few buyers ask vendors about their own business model and experience: How long have they been operating under the current name? Do they have partners? Is this is a company with sufficient history, stability, and staff to weather the twists and turns of today's economy, or are they a start-up, funded by a home equity loan?
I know, asking someone how financially sound they are seems tacky, but this is business. Vendors do a credit check when you request terms; asking them for financial background is not inappropriate.
This next question might surprise you: Are they a home-based business? Retailers often think to ask about whether or not a vendor will sell to home studios, but rarely consider whether the vendor might be operating from their own basement.
If they are, don't immediately assume they're a poor option, but do consider that their financial status and direct-to-consumer sales are of greater significance. Many designers operating from home are under-funded, rely on third party production, and actively sell online.
Door Number One, Two or Three?
In today's world, vendors have the ability to wear a lot of hats — some more openly than others. As in any business relationship, it's critical that you know the motivations of potential partners to evaluate whether or not they align with yours.
This leads to the big question: Do they sell direct to consumers? If yes, they're vendor and competitor. This is as important as knowing which local stores carry the same line.
Also, if yes, ask if they sell under their brand name on their site, or if they use a pseudonym on a different website. Many companies fly under the retail radar by using a different name. Legal? Yes. Ethical? ... Let's say it's number one on the list of Hot Button topics in the food court.
And what about Etsy? Does the vendor sell to consumers there? You might be surprised by the number of small and medium-sized print lines using this virtual storefront, typically under alternative names.
Then there's the discount issue: Do they have a policy barring discounts? Is it in print? Must retailers sign it? And most important, do they enforce it?
The fastest way to turn a stunning couture album into an overpriced doorstop is to ignore the impact of price slashing. The moment gets out virally that a line is available at below market prices, the brand value is diluted, and customers expect to negotiate the numbers, pitting your store against discounters.
If a vendor doesn't put a discount policy in print, suggest it; change occurs when someone asks for it.
You Scratch My Back...
You may not have a marketing campaign in place, but it's important to know what tools the vendor will provide to help move their line. Do they offer high resolution photos suitable for banners? Digital art for e-blasts and websites? Marketing materials? Countertop signage? All are important to jump start sales.
And that brings us to the most important question: Do they list retailers on their website? Many potential customers locate local stationers via a vendor's site, having seen its products featured in magazines or online.
Follow up by asking if the vendor links retailer listings back to store websites. That brings consumers straight to you, simultaneously delivering inbound links that are golden with search engines.
If a vendor is only willing to list you on their site for an additional fee or mandatory print ads, step back to ask yourself: What kind of company sells you the books, but won't promote you in return? Is this a business partner you can depend on?
Bottom Line
There are a myriad of companies to choose from, including a plethora of first timers. Given all the changes coming with "the new economy," it's more important than ever to look beyond the books and into the business of vendors. After all, a good partner is a great investment ... and a bad one is a nightmare.
We would love your feedback!
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