Getting information out of suppliers

[chrischambersuk]

I have just found this forum and registered straight away, it looks like an awesome resource. Hello!

I am currently researching a business plan for a internet start up selling outdoor and extreme sports fashion and equipment.

I have got as far as registering the website (lokio.com and lokio.co.uk), and am designing the web pages for an associate to turn into a really slick site. At the same time, I am writing my business plan. I am a recent business management graduate, and have made several theoretical business plans in the past, however, when it came to writing a section on suppliers (and the information that will spill into many categories, most importantly costs and profits), I have hit a brick wall.

I have no experience of how the supply market works. I emailed some of the brands I wanted to stock (eg Quiksilver, Animal surfwear), explaining my situation, and have recieved no reply at all. I had thought they would be rather keen to have a new channel... and am puzzled why not.

My first thought was that they were not taking me seriously; I can see a case for not allowing (eg) cost-price information to be available to just anyone who asks for it. But without facts and figures I cannot continue my planning.

I wonder if anyone could explain the supply system to me, and perhaps suggest a way of getting these brands to play ball - is it just a case of letterheaded paper?

Thank you for taking the time to read this, it's hard to get going anyway, but as I am also very young (22), I feel (I hope needlessly) a little out of my depth.

[Ian J]

You might get a better reaction if you telephoned the company.

[peterjhale]

Hi and welcome

Don't be put off by your age - many people under 30 are making serious money.

The large brands are unlikely to let you guys, as a new start-up, stock their stuff so you can make loads of money - they're doing it already.

You need to get some wholesalers....and this is the hard part

I suggest you try http://www.thetraderonline.com/ as he has a lot of info on wholesaling.

Also , have you thought about fulfilment ?

ie: You buy the goods, you stock them somewhere, order comes in , you post them - customer says not received......

The best way to develop your business plan is to put yourself in the customer's shoes and live their experience from thinking "hmm, I need an item of clothing" to " knock, knock - it's the postman.."

[chrischambersuk]

Thank you Ian and Peter, that was a speedy response.

I still don't understand though; you say that they are unlikely to want to deal with a small start-up as they are making money themselves, but few of these brands actually sell their own product direct to consumers, and certainly not on-line. They are available in every single high street skate/surf shop you would care to go into - do these stores (often singular operations) buy from wholesalers do you think?

Also re: Fulfilment, is your query about how I can keep control once the goods have left my stockroom? Short of a trustworthy courier service, i'm not sure how I could overcome this.

I agree that writing a business plan largely from the customers point of view, and systematically through the stages of the transaction is an excellent structure for a plan. I'm finding the process of writing the plan very useful, as you have said in other forums, it really focuses on what your skill shortcomings, and what needs to be done about it - i only wish i had a little experience in the specific field. although i read today that the government hs launched a programme to encourage undergrads to start businesses as soon as they leave uni...

[peterjhale]

the thing is Chris you have no track record at all - why would they deal with you at all?

You will see that quicksilver gear is certainly being sold on the net already

Have a look at some of these sites and see what they do

http://www.google.co.uk/search?hl=en...UK%7CcountryGB

[chrischambersuk]

Peter

I know that other people are selling these brands, these are my competition.

My point is, the BRANDS do not sell their own products retail, as the search you suggested illustrates - I have pages and pages of research on my competition - but no way of knowing where they get their stock from, I have assumed they get it direct from Quiksilver, Animal etc, but they must have started in the same place I am at some point?

You will notice on your search string results that quiksilver.co.uk is not immediately listed, and when it is, you cannot buy from them, they distribute through retailers, like the ones listed, and like I want to be. Check out www.shore.co.uk, a very similar outfit to my idea, they stock all kinds of products, seem to be a relatively small operation - do they buy direct? or through wholesalers? many of my competitors (not all big, well established ones) claim to have official affiliation or endorsement from the brand manufacturers, this would seem to suggest they deal direct.

[davidhorn]

Have you tried calling your competition and just asking them? I know it sounds counter-intuitive, and they might not part with the information, but you never know ... call enough of them and someone is bound to be friendly / helpful. Or pop into one of their shops and ask a sales assistant - you just never know. If you really are tearing your hair out on it, you may as well just ask.

Alternatively, there are many business case studies online - on a lot of different marketing tutorial type sites - see if you can find one and ascertain from that what they do.

However, I'm not at all surprised that they ignored your email - write a letter to their distribution manager, make a phone call, apply for a job in the department (try to get an interview and suss it out that way). There should be more productive avenues open to you than email.

And best of luck - I'm sure you'll get there,

David

[Inzvestor]

You'll still need to buy through wholesalers, as Shore does.

The main brands all have hq's which arrange the branding, marketing, production etc, but not the distribution.
It is easier for them to sell all of their products to a few wholesalers, who then onsell to retailers, taking their cut.

How many people would you have to employ to chase for payment and arrange deliveries to/from individual shops ? If companies like Quiksilver etc had to do this then prices would be double what they are already.

Talk to the wholesalers, don't even bother with contacting the companies.

[chrischambersuk]

thanks for that.

you said in another thread you used to sell this kind of stuff - is this the way you went? Do you know for sure that Shore do business this way?

Also, I mentioned earlier in this thread about becoming an official supplier, as some of the other stores are - is this purely a marketing thing in your opinion between the manfrs and retailers - with supply dealt with seperately? Or perhaps they will supply direct to the bigger companies....

Thanks for your help again, and have a Merry Christmas.

[Inzvestor]

Once you grow to become a certain size (after proving yourself with sales over a period of time) you may be given the opportunity to deal direct with the manufacturer.

Re Official Supplier status
Depending on the label, this may just mean that you have reached a certain sales target set by the supplier, or are guaranteed to only sell genuine clothing (no fakes from E. Europe or Asia)

Ask some of the stores that display this what it means. However, it is likely the staff themselves will not know. Perhaps their marketing departments will be of better assistance.