How handmakers should approach retailers

We get approaches from handmakers all the time over at pressies4princesses. Usually by email - it's the quickest, lowest commitment and most face saving method. Just bang off an email and hope for a response, right? If you get nothing back, well hey, at least you didn't have the embarrasment of actually having to speak to someone!

Of course, with a constant trickle of these emails rolling in day after day, few get much attention. We try to check them all out and respond - unless it's obvious we were just one name on a mass emailing.

Most of the approaches are not tailored. Many start in the same sorry way - something along the lines of: "I started making jewellery as a hobby and my family and friends said I should start a business. I was wondering whether you would be interested in stocking it." Hardly persuasive is it. Why would a retailer want to stock this range? So your family and friends have somewhere to buy it?

You've just got to try harder. Stop talking about what's in it for you - a lovely little jewellery business. Instead, tell the retailer what's in it for them. You can't expect them to be motivated by the notion of you getting what you want.

So what does a retailer want? What buttons should you be pushing in your approach? Unsurprisingly, money - or more specifically profit - is pretty much top of the list. So get your trade and retail prices in there straight off, alongside the (decent quality - keeping trying 'til you get it right) photographs of your samples. That way the buyer can say, "Yes, like the style. Yes, retail price is realistic. Yes, trade price allows sufficient margin". And, can therefore say yes to your call to action (read on).

OK, so if we're talking pricing, we need to cover a couple of issues:

1. Don't price too low - this stuff is supposed to be special
2. Allow at least 100% mark-up or 50% gross profit margin
3. Don't forget to allow for VAT.

The retailer is interested in their selling price less 17.5%, because that first 17.5% goes straight to Inland Revenue. This is the net price and that amount should be approximately double your trade price. That's the norm on luxury goods. For more, on prices read these posts: Handmade Jewellery at a Price and Nice Gems Shame About The Prices.

One last thing about pricing. If you do have your own website, for goodness sake make sure your retail prices match those you are proposing. Time and again we go to handmakers personal sites and see that they are selling the item for half what they are suggesting we do. Well, firstly, no retailer wants to be undercut by a supplier - it makes us look like rip off merchants. And, secondly, selling at lower prices basically says that you don't believe that the retail prices you are proposing are realistic.

Asides from profit, retailers like exclusivity. They want to have something different. Something all their competitors don't have. They are, after all, trying to differentiate themselves in a crowded marketplace too. They'll be more interested to hear that you are approaching just a few select retailers, than that you are hitting everyone and anyone and it's going to be everywhere by next Spring.

Don't forget to tell the retailer how you intend to do business. Minimum order quantities/ value, delivery lead times, payment terms, etc. Just in a short summary paragraph. Something like: "Minimum order £250. Delivery within 14 days. First order pro forma, then 30 days credit..." This will show them that have really thought this thing through, which is always encouraging.

Last of all, give them a call to action. Don't bother asking for an order. This is unlikely to happen. Any self-respecting buyer will want to see the merchandise in the flesh first. Offer to send samples by express mail instead.

The day after you send your email, telephone the company. Try to get hold of the buyer and draw their attention to your mail, in case they missed it. If that was the case, offer to send it again. Have a 1 minute sales pitch covering all the above on the tip of your tongue. Be prepared to deliver it at an opportune moment to ensure you email is read.

Once you've sent the email and made the call, you should pretty much leave it at that for the time being. Don't pester the buyer. The ball is in their court to respond. Give them a week or two before following up with another email. Do not plague them with phone calls.

Leap on positive responses immediately. Get those samples out next day using a next business day service like Royal Mail Special Delivery. The sooner you get your products to the buyer, the sooner you can close the deal...but that's another subject!