Working with Distributors
IndieChat recap of ideas
If you missed our last IndieChat – Working with Distributors, you missed a great session! We had a solid group of very engaged retailers of all sizes asking questions and sharing experiences with our panel of distributor representatives. We don’t record IndieChats (so everyone can feel free to share openly) but we often recap the highlights for you. From our September 11 IndieChat:
IndiePet was pleased to have representatives from three distributor members serve as our panelists for this discussion. A big thank you goes to Jessica Morris (Phillips Pet Food & Supplies), Judee High (AFCO Distribution), and Arianna Untereker (Pet Palette Distribution) who all came prepared with great ideas and answered tough questions in an effort to support and improve product distribution in the independent pet retail segment. Each provided valuable insights and leadership for our IndieChat conversation.
To kick off, our panelists introduced a few key areas where they feel opportunities exist to optimize the product flow from manufacturer to consumer. The topics and what retailers can do is paraphrased and based on the discussion.
Assortment - Distributors continually review innovative brands, rationalize current SKUs in existing lines, and educate vendors on the value of small case packs.
What can retailers do?
Ask for top-selling SKUs when refreshing your assortment. Include unique items to keep customers coming back and excited to see what’s new.
Seek assistance in creating multi-brand planograms (POGs) to optimize and fill your available space. Always feel free to add target price points and/or themes to better tailor to your needs.
Check on seasonal assortments and rotations and keep seasonal prebooks on your radar to secure top-selling items.
Utilize rotational and seasonal endcaps to tell a seasonal story.
Stay tuned to emerging and unique subcategories as they continue to grow in popularity and are increasingly problem/solution-focused or tailored to specific needs. E.g., enrichment toys or chews, treats or foods based on specific qualities.
Inventory investment – Distributors put a lot of time and research into staying on trend with the market. Teams analyze market trends for “hottest color/style of dog beds to trending toy designs and for the treats that suit a ‘pet parent’s’ diverse wants and needs for their pet’s unique diet”. They also strive to be excellent forecasters as they need to be able to predict which of these products will be great sellers and stock those products in quantities that will allow them to fulfill their customers’ orders. They need to keep enough in stock but not too much.
What can retailers do?
Know your distributors’ minimums (don’t be afraid to ask!) and know their stocking/shipping schedule to reduce the possibility of being short products you need or want. Try to plan orders so you can meet free shipping minimums.
Verify which items are in case-packs and which are sold as individuals to maximize your orders.
Be aware of promotions your distributors may be offering and take advantage of them if you can to increase your margin. Distributors should communicate this information but again, don’t be afraid to ask!
Keep up with trending themes from social influencers or national events/days and consider creating events or promotions around these themes to give customers a reason to visit your store. E.g., the Barbie movie in 2023 set off trends that continue today. Consider bringing in “themed” apparel, toys, or party items to promote the theme.
Know your customers and understand the price-points or trends that best appeal to them and search out (or request) from your distributor, products that fit. E.g., Made in the USA, $9.99 MSRP & under toys, interactive toys, etc.
Marketing Support – Distributors often provide special event promotions and sales.
What can retailers do?
Communicate with your distributors. Learn what specials they have for trade shows and other events. Know in advance whether you must be present to take advantage of the special and how long the special lasts.
If you hold in-store events, ask whether your distributor can support your event and/or what resources they can provide.
Visit distributors’ booths at trade shows or peruse their websites to find new items.
Build a good relationship with your rep so you can be in-the-know when there are hot new items available.
Do you want to be part of the conversation? Join IndiePet for access to IndieChats and other great benefits!
Sales Support – many, but not all distributors have sales reps that visit their retail customers to help keep retailers up-to-date on national and local trends, introduce new products, and help retailers select the best products for their market.
What can retailers do?
If you are not in an area covered by a distributor rep, of if your rep is only able to visit infrequently, try to stay up to date with your distributor’s emailed communications so you are aware of new products and new trends when they are available.
Develop a relationship with the inside rep who can be a great source of product information for you.
Operations - on time deliveries, accuracy, fill-rates are issues nearly all distributors face at some point.
What can retailers do?
Know turn-around time for your distributor and if applicable, know their delivery schedule and by what method they deliver so you can plan accordingly.
Know your distributor’s policies or where to find them, for damaged or missing items, etc.
Technology- Distributors are invested in making sure you can do business with them easily and efficiently.
What can retailers do?
Learn how to best use your distributor’s website to make re-stocking or browsing for new items easier.
Our IndieChat included lively discussion around all these topics and more including competing with Chewy and other retail channels, MAP enforcement, communication around discontinued products, return policies, and service challenges to rural stores. Discussion also included retailers sharing their practices and insights on inventory technology and management, pricing policy, and marketing partnerships with their distributors.
We can best sum it up by saying open communication with your distributors around what’s working well and what is not working so well is key to building strong distributor relationships. They want to hear from you. They want to help you be successful in your business.
IndiePet’s IndieChat sessions provide the opportunity for retail members to get together virtually and discuss topics that are of interest or concern to all. Within this “safe space” IndiePet facilitates the openness and sharing that is one of the foundations of IndiePet – helping independent retailers work together, share their knowledge and learn from each other with the goal of contributing to the success of all. We hope you will join us in a future IndieChat. Once scheduled they can be found on our Event list.
