Are manufacturers' minimums generally too high? At what point do you say 'no' even though you like the product?

Most vendors are realistic about what an opening minimum should be, but once in a while we find one who insists we go deep-deep into a line, or re-quires large quantities per style. In the end, the math is simple. I won't agree to an enormous opening order that would mean dropping several other lines to accommodate (financially or for shelf space), nor will I order large quantities per style. A smart vendor will get a lot more “face time” with six designs three deep than only three designs six deep. An even smarter vendor won't force me into enormous quantities of product I don't need; marking things down 50 percent to move them doesn't inspire reorders.

Generally they are not too high. I did run into a situation where as much as I loved the product, I had to say no because it was several thousand dollars to open. That's ridiculous. Usually I see $50 to $250. The latter is the most I'm comfortable with, unless we're taking on a whole new category and need every fragrance or china pattern. Normally $250 gives a good ex-ample of a line without getting in too deep in case it doesn't sell. Reorder minimums become an issue when they're as high as the initial order. If you have to buy an assortment but only three colors sell, and they won't let you reorder just the ones you need, you have to decide if it's worth it to end up with dead product twice. For people just starting out, initial minimums might be an issue. Then you have to ask how important is the line, can you find another with comparable products and quality.

Some are very high. I've gotten used to it and gotten a better feel for what is a reasonable minimum that I can move. My issue is not as much with opening minimums as with reorder minimums. I can't just bulk up on a huge reorder. I end up letting the stock get really depleted, and then I don't have a nice showing. You want me to reord-er when I'm out of one thing, with-out waiting for four other things to run out. The ones that don't have a reorder minimum are king with me. Opening minimums are good as long as there's a nice range of products to choose from. I'll pass if I have to go too deep on a limited selection, if I know I can sell only a small quantity, or if the product looks like it'll easily get knocked off before I sell it all. I will go much deeper if a vendor honors an exclusivity agreement. I'll take a much bigger risk on them if they'll back me.

I haven't had any problems. I've been quite pleased. Most of them are really very reasonable. What I dislike more than high minimums is when you have to purchase one item in high quantity. I like the product, I like the price, but I don't want to buy 50. It'll kill my turns. Typically, I've seen that higher minimums correlate not only with higher prices but with territory protection. Just about every line I've bought with a higher minimum, there's a higher return. I'm looking at a new line that costs about $2,500 to get into, but it's worth it. A lot comes with that. I'm getting signage, territory protection, and training from a rep. At that price, it better be something we'll want to keep in our store for a while, something that will make customers say “wow.”