Attendees of the January 2023 Coastal Connections Conference, had the opportunity to learn buying strategies from the industry’s top trade shows and consultants.
During a session titled, “Effective Buying Strategies,” Cindy Henry, vice president buyer services, International Market Centers; Lisa Berry (Glosson), vice president gift and souvenir division, Clarion Events; and Dane Cohen, business development manager, Management One, shared their best advice for buying.
Henry provided tips and tricks for attending markets. “Plan ahead,” she said. “Figure out your travel and logistics. Make appointments with vendors in advance and be on time. Tell them about your store, your leading price points and categories so they’ll be better able to help you. Ask them about their on-time percentage, shipping rate and fill rate. Do they have special retail terms or show terms?”
Some shows will let you in early, Henry said, and this information can be found on each markets’ app. “Markets are a great opportunity for networking. Get together with any retailer group you’re in and trade war stories. Ask your buddies what they’ve heard about, what they’re excited about.” And don’t skip the educational seminars, she added.
Have a budget in mind, stressed Henry. “As a vendor I can’t tell you how many times I’ve had retailers cancel orders because they didn’t have a budget when they came to the show.” She said there are apps that will let you track your budget right on your phone.
Product catalogs will be online, Henry said. “If you’re interested in certain lines take pictures of them and write down what you’ve just taken a picture of.”
Henry concluded by saying, “make sure you take breaks, eat and wear comfortable shoes. And leave time for discovery! Look for inspiration. We’re in this business to bring joy. These shows are supposed to be fun.”
Berry, also had tips on attending Clarion tradeshows, saying, “Get to know your vendors. The more they know about you the more they can help you. Research the exhibitors and have questions prepared. Make note of their booth numbers.”
Berry also mentioned that many vendors offer show specials, including cash-off deals, percentage discounts, free displays and free shipping.
When Cohen took the stage, he took a different approach to buying strategies. Instead of telling retailers what they should be doing, he decided to share, “Five Critical Mistakes to Avoid When Managing Your Inventory.”
“Tip Number One: stop front-loading your merchandise,” he admonished. “Stores that went out of business over the pandemic were mostly owned by people who loaded all of their inventory into the first few months of the year. By March, they had way too much and got caught with their pants down.”
Instead, “spread that cash investment out over time,” said Cohen. “Bring out new merchandise every month to get that good cash flow going on.”
Tip Number Two from Cohen was, “stop valuing margin over cash. Cash and margin are not the same thing. Get cash back in your pocket by taking a markdown on goods that have not sold. Remember that 50% of sales come from inventory arriving and being sold within the same month. Look at the things that aren’t moving; that’s literally cash sitting on your floor uncollected. Get it back and invest it in more productive inventory,” he said.
People are expecting to pay higher prices now, said Cohen. “If you have the same pricing strategy you had three years ago, any price increase goes right to your bottom line. Add 99 cents to a price, that’s 99 cents pure profit over what you would have priced it at.”
Other tips he shared were, stop thinking you can’t increase your initial mark-up, stop winging it with purchasing, and stop looking at the wrong metrics.
The Coastal Connections Conference was held Jan. 22-24 at the Margaritaville Resort in Orlando, Florida. Dates for the next edition will be announced soon. Visit www.coastalconnectionsconference.com to learn more.
