Page 183 - DMGT550_RETAIL_MANAGEMENT

Retail Management

Notes 4. Ask About Incentives: The whole idea behind negotiating with manufacturers and
suppliers is to receive the best price, payment terms, advertising allowances and even
exclusivity. Start by asking what incentives you qualify for and let the negotiations begin
from there. Don’t be afraid to ask for what you want.

5. Mention the Competition: It is okay to mention the vendor’s competition in the negotiation
process but don’t disclose any pricing or other confidential details. There is nothing wrong
with letting a supplier know their competitor is in a good position, whether it is real or
perceived.
6. Find a Fair Compromise: Just like the retailer, the vendor must make a profit to stay in
business. Vendor relations should be treated as collaboration rather than conquest. As
you negotiate a good deal for your retail business, consider the outcome for the supplier.
7. Think Long Term: Establishing a solid, trustworthy relationship with a supplier can only
help your retail business. Vendors, who feel the customer will be loyal, may concede to
even more incentives in order to maintain a long-term partnership.

8. Take Your Time: Never feel pressured to buy from a salesman. If you’re not satisfied with
the negotiating process, ask for time to think about the offer.
9. Get it in Writing: As the negotiation process comes to a close, make sure the offer is put to
paper. Don’t sign any sales contract unless it matches the verbal agreement.
10. Practice Makes Perfect: Not everyone is a natural negotiator. It takes time to learn when
to speak, when to be silent and how to read body language. The more you negotiate and
sharpen your skills, the better you’ll get.
Self Assessment

State whether the following statements are true or false:
9. Private labelling is the interesting story of a how a segment of products, originally
introduced as low-price alternatives to high-priced brands.
10. Analysing is an age-old practice that is still common in the marketplace in many countries
today.
11. Producing for the private label market has been a valued strategy by small business in the
middling-size category.
12. A still emerging trend in private labels is the rapid adoption of these brands by firms
involved in Internet commerce.
13. Store brands have evolved from merely the generic low-priced product to a wide selection
of items that have a brand identity of their own.
14. Plant expansions can be rationalized by adding a substantial government-label production
run.
15. Establishing a solid, trustworthy relationship with a supplier can only help your wholesale
business.

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