Retaillers being agents for my wedding products (Advice)

theshamu

Hi Lads,

Started up my own on-line business in March 2012, specializing in affordable wedding stationery + party invites etc.. (when I say affordable I don't mean cheap crap!) Business showing great signs and getting fantastic feedback from customers and getting lots of referrals from this.

I don't want to rely completely on on-line sales as I'm still working on ranking the site and It's constantly jumping rankings from page 1 - 3.

I have a local shop selling some of my products, only a small range of party invitations and doing ok (I think FB is killing the party invitation business!) So I was thinking of doing up samples and approaching wedding related retailers like:

• Wedding dress shops
• Suit hire shops
• Florists
• Hair salons
• etc...

Basically I would design a sign and place it in there window and any sales they generate they would get a kickback of 15-20%. Average order is about €120 and they would only have to take details and pass it on.

Here is the model:

• Sign and samples placed in store
• Retailer takes info for order and 50% deposit
• Retailer passes on info to me
• I proof directly to customer
• Once approved I print job and deliver to retailer
• Retailer pays me upon delivery

This is for off line sales only.

Simple question, do you think retailers would go for this or am I wasting my time. Personally I think its a win win for the retailer.

Any advice appreciated.

JMR

I think one possible problem with this model would be verifying the source of the sale.
You are basically asking the retailer to provide free advertising for your site, they only get paid if the customer somehow verifies to you that they were referred by the retailer.

Retailers may be more open to the idea of stacking business cards or leaflets at the point of sale and having no involvement with the sale at all, rather than a window display

theshamu

JMR wrote: »

I think one possible problem with this model would be verifying the source of the sale.
You are basically asking the retailer to provide free advertising for your site, they only get paid if the customer somehow verifies to you that they were referred by the retailer.

Retailers may be more open to the idea of stacking business cards or leaflets at the point of sale and having no involvement with the sale at all, rather than a window display

Hi JMR,

Sorry I didn't explain the model in full, this is how it would work.

1. Sign and samples placed in store
2. Retailer takes info for order and 50% deposit
3. Retailer passes on info to me
4. I proof directly to customer
5. Once approved I print job and deliver to retailer
6. Retailer pays me upon delivery

This is for off line sales only.
Hope this clears it up.
Thanks.

JMR

Sounds good, the only drawback I would see is that the retailer would probably look for more than 15% - 20%.

The outlay for them is mostly comprised of time, the staff need to be trained and knowledgable about the new product lines, they need to able to provide additional samples to customers, deal with complaints or other issues etc.
Is it worth their time for 15% - 20% ?

riveratom

theshamu wrote: »

Hi JMR,

Sorry I didn't explain the model in full, this is how it would work.

1. Sign and samples placed in store
2. Retailer takes info for order and 50% deposit
3. Retailer passes on info to me
4. I proof directly to customer
5. Once approved I print job and deliver to retailer
6. Retailer pays me upon delivery

This is for off line sales only.
Hope this clears it up.
Thanks.

Not sure I completely get it.

Why would the retailer pay you in step 6? It sounds like you will be dropping the order into the retailer, and then the customer would pick up the order from the retailer and pay them. Then, you'd get the funds, minus the retailer's cut? Isn't there a step missing, in between 5 and 6, where the customer has to come in and pay for the order first?

theshamu

riveratom wrote: »

Not sure I completely get it.

Why would the retailer pay you in step 6? It sounds like you will be dropping the order into the retailer, and then the customer would pick up the order from the retailer and pay them. Then, you'd get the funds, minus the retailer's cut? Isn't there a step missing, in between 5 and 6, where the customer has to come in and pay for the order first?

This is how I've been doing it the past 12 months with the shop I'm in.
If a customer is going to pay 50% up front they are going to collect the finished job, I've yet to experience a refund or non payer. (not to say this won't happen)

But that's why I'm on here looking for advice and to tighten this model up, I have no problem in getting paid off the retailer once the job has been collected. But I would need a deposit at the start to cover costs if the customer does not come back but again it's very unlikely.

riveratom

theshamu wrote: »

This is how I've been doing it the past 12 months with the shop I'm in.
If a customer is going to pay 50% up front they are going to collect the finished job, I've yet to experience a refund or non payer. (not to say this won't happen)

But that's why I'm on here looking for advice and to tighten this model up, I have no problem in getting paid off the retailer once the job has been collected. But I would need a deposit at the start to cover costs if the customer does not come back but again it's very unlikely.

It sounds like a good model as it is - I just wasn't sure of the process based on the steps you outlined. It sounds like you collect from the retailer after they have sold the product to the customer then.

I would say it is a case of going for it really, and expanding out to other potential partners. As the other poster said though, I think most will look for more than 15-20%. You're essentially getting free space in a prime location in their shop, and they are doing the actual work of getting the customer's details, answering any questions, making the sale!

If I were a retailer, I'd be looking for more like 30%. Which while not related as such, is exactly the commission amount Apple charge developers on sales in the App store!

theshamu

@ riveratom:

To be honest with you they don't really have to do an awful lot, they will have an order form supplied by me with all required information from the customer, they usually ask the same questions all the time, how much and how long does it take!

I think your right with the amount of commission tho, I think 25% is quite good and I know of other printers etc. only offering 15-20% on commission based sales.

Thanks for the input.

hardCopy

It might also be worth approaching Wedding/Event Managers at a few hotels.

theshamu

hardCopy wrote: »

It might also be worth approaching Wedding/Event Managers at a few hotels.

Yeah, that's on the list for early next year.

Cheers..

riveratom

theshamu wrote: »

@ riveratom:

To be honest with you they don't really have to do an awful lot, they will have an order form supplied by me with all required information from the customer, they usually ask the same questions all the time, how much and how long does it take!

I think your right with the amount of commission tho, I think 25% is quite good and I know of other printers etc. only offering 15-20% on commission based sales.

Thanks for the input.

True enough alright, I'd agree with you that 25% is probably nearer the mark.