Our small business agony uncle offers his advice on how to tap into the parts of the market you're missing.
Dear James:
We are a successful toy distributor. We have been very successful with big retailers but have difficulties getting independent retailers to buy from our range. We have no minimum order and a carriage paid order is only £200. We have used agents to represent us, on 10% commission. At what stage do you believe it is worth getting your own reps rather than using agents? - Thierry Bourret
James says:
Thierry, from the information you have provided, I believe you are giving independent retailers a good deal, so let’s address why you may be finding this sector a struggle.
There are many possible factors. The first question is, are your products relevant to the retailer’s customer base? You may need to do some research here. There is never a “one size fits all” strategy and you will need to bespoke your offer.
I would review the performance of your agents and, if you feel you are not getting value, recruit someone into your firm. Agents, when they perform, can be of great benefit as they have connections in specific industries, but are they as passionate as somebody within the business? I have found that the best sales people are often those who believe in the product and the vision of the firm.
There are many good sales people out there who could be right for your firm. When you find one, work closely with them to ensure they grasp the brand properly, and provide them with incentives. Be realistic: calculate your turnover and the targets you think they can achieve.
