When it comes to success within adult retail, distributors can be powerful allies, but not everyone understands the true value of working with a distribution partner. There’s a lot of misinformation and misunderstanding about the role distributors play in the process, so I’d like to explore four of the most common misconceptions about working together — and I’m going to bust them all. Let’s get to the truth about the role distributors actually play in the process!
Retail Myth No. 1: Distributors Don't Look Out for Their Customers
Distributors play an instrumental role in helping retailers stay on top of new releases, new brands, and recalls, as well as staying competitive and on-trend.
I’ve heard this one more than a few times. There’s a commonly held belief that distributors don’t have their stores’ backs and it always makes me sad to hear it — clearly these retailers have had painful experiences with their distribution partners.
The Truth: Distributors are 100 percent partnered with the stores they work with. Vendors and trends may come and go, but your distributor should always be there as a partner and be prepared to help you adjust and adapt your inventory. The distributor/retailer relationship is one in which success is mutually beneficial; it is in your distributor’s best interest to help you succeed by offering a wide variety of products, sales and merchandising tips, and hands-on support to make sure you’re catering to your customer base with the right selection.
Retail Myth No. 2: It's Better to Buy Direct
Retailers are often tempted to purchase direct from manufacturers with the incentive of scoring special deals or additional discounts. And while this can be true, these special deals aren’t always the best deals available.
The Truth: While buying direct may initially seem like a great idea due to initial larger discounts, retailers ultimately end up spending more per year in order to maintain the discount deal. This can lead to retailers buying more than they really need and tying up their cash in inventory that ends up sitting in storage and degrading over time. Stores don’t benefit from sitting on inventory and having too much of one item or one brand can absolutely be detrimental to sales. Stores profit by selling merchandise; backstock is money sitting in boxes.
Distribution allows stores to run leaner and meaner. This means keeping money in your pocket and allowing you to spend on things that are important to run your business, like marketing. Having a variety of strong-moving product keeps your shelves fresh and working with a distributor allows you to buy items in one- and two-count pieces instead of worrying about buying in bulk quantities and risking having to keep much of it in storage. And distributor terms help you sell through merchandise before you need to pay for it, something manufacturers can’t offer, and most distributors take back returns when items don’t sell — allowing you to make space for products your shoppers want.
Retail Myth No. 3: Distributors Are Hands-Off
Some folks believe that distributors have just one job and, aside from taking and shipping orders, they’re kinda just … there. Not true!
The Truth: Distribution is all about service — full service! This is what separates distributors from direct manufacturing and makes us so vital to your business. Distributors can do things for you that just aren’t possible for others to provide, because we have the staff and resources to do it. Our industry can be overwhelming, no matter what corner you work in, and distributors play an instrumental role in helping retailers stay on top of new releases, new brands, and recalls, as well as staying competitive and on trend. For instance, we hire knowledgeable industry professionals who can guide retailers through the variety of brands we offer and help them make the smartest choices. It’s key to make product decisions and merchandising displays that best suit the needs of each store’s unique community.
Beyond simply keeping stores stocked, distributors also put a lot of resources into in-store support. This can be anything from planning events, staffing events, supplying giveaways for events, and even helping to streamline existing inventory and remerchandise interiors.
Retail Myth No. 4: Distributors Can't Save You Money
I mean, ask any of our customers and they’d probably laugh at this one!
The Truth: Using multiple direct vendors can add to your overhead, including the cost of storage space, warehouse workers, more staff to receive goods, more staff for accounting, and more operational expenses. There are multiple ways that working with a full-line, full-service distributor can help you increase profits and manage your money better:
1. You only need to order from one place to get all your needs met.
2. You only need to have staff on-hand for a single weekly delivery.
3. You can get testers without having to make additional purchases.
4. You can return defective or overstock products, rather than having to eat the cost.
5. You only need to stock what sells.
The bottom line is that distribution can have a direct positive impact on your overhead, and it’d be a shame to miss out based on a myth like this!
When it comes to working with distributors, there’s a lot of misinformation circulating that could actually cost you money. Distributors can wear multiple hats to help your business improve in unconventional ways, and at the retail level, distributors strive to do what’s right for you. We look at what would most benefit your particular establishment, rather than pushing specific products, and distributors like us have the experience and know-how to help keep your store stocked, streamlined and prepared for success!
Lynda Mort is the vice president of East Coast News. With 25 years of experience in the adult market, ECN is a major, respected distributor of adult novelties in the U.S.
