Check Out New Distributors, While They Check You

Before signing up a new distributor, check their credentials against a list of eight factors recommended in the CAMEX 2020 educational session, What to Expect from Distributors (and What They Expect from You). And, as the session title promises, there are also a few things an experienced distributor wants to see in a prospective client store.

Session presenter Dave Harris, president of Pens, Etc., has been in the distribution business a long time and witnessed a lot of consolidation in the collegiate retail industry. There are fewer independent college stores as well. “We’re survivors,” he told the CAMEX audience.

It’s important for campus stores to find distributors who can be a partner, not just a provider of certain products. Harris put together a list of attributes, grouped into eight categories that store managers and buyers should review when considering a new distributor or supplier (or use the list to evaluate how well existing vendors stack up).

Reliability, experience, and knowledge

“If you’re looking at picking a general merchandise category, how long have they been in business?” Harris said. Consider whether the company takes a “shotgun approach” to certain products (offering them only for a set period of time) or a “rifle approach” (products are available year-round).

“How many times have you spent time fixing invoices, when freight was added when it shouldn’t have?” Harris asked. Look at the distributor’s track record with billing, shipping, packing mixed cartons, packing slips, and credits for returned or damaged items. The ability to accept online orders reduces the chance of human error.

Do they offer same-day shipping? “That’s not very hard to do. You’re trying to keep your inventory turning at a proper rate,” Harris said. “If you can’t ship same day, it’s probably time to look for a different distributor.”

Using environmentally responsible packing materials is another plus. “Students care about that,” he noted.

Vendors who proactively participate in organizations in the college store industry and are aware of trends and events are in a better position to understand the needs of campus stores, in Harris’ view.

“I think you should be able to talk to a real person” when the store needs information or has a problem, Harris said. Representatives should have the authority to make decisions or put the store in touch with management. The company should also be willing to hear feedback from the store.

On the flip side, a good distributor will keep stores informed. “If we hear somebody’s got something that’s selling like crazy, we’ll let the reps know and they can share it with stores,” Harris said.

A fully functioning web operation is where some suppliers may not come up to snuff. Vendors are still struggling with getting all the online tools in place, but it’s something that stores should take into consideration.

“Can you get order history, how many open orders you have, credits?” he asked. Stores should be able to view all of the company’s policies (such as freight and payment terms) on the website, along with full product catalogs, current promotions, and especially real-time pricing. If the vendor offers displays, a detailed description with a breakdown of the items and price points should be included.

Ask how much turnover there’s been with the customer service staff and how much experience they represent on average. “Does the customer service person make you feel like the most important person in the world?” Harris said.

Again, turnover rates and experience can tell a lot about whether the reps will be able to service your store effectively. Other things to look for, according to Harris: extensive product knowledge, honesty and integrity, prompt return of calls or emails, and respect for all employees at the store. They can also “point out what’s hot and what’s not” to assist stores in product selection, Harris added. And if they recommend a product, will they take it back if it simply doesn’t sell on your campus?

An effective distributor will be aware of industry best practices, seek out new products to differentiate their selection, and offer opportunities for all retailers to make some money with specials and pricing integrity.

On the other hand, what characteristics does a distributor look for in an independent campus store partner? Number one on Harris’ list is that store managers are actively engaged with the school administrators and demonstrate the value of institutional operation.

Financial literacy and responsibility come next. “Are we going to be paid and on time?” he said. The store should comprehend the true cost of ownership (such as factoring in personnel and freight), know how to manage inventory turns, and understand how to take advantage of incentive and promotional programs.

Being open to new products (with realistic expectations), willingness to hear advice and recommendations, and not being afraid to try new technical tools are also important to suppliers, Harris said. Those qualities enable the distributor to provide more help and support to the campus store.