šø Fret Not Friday: Brands - How To Choose Winners šš„
- Lee Alexander
- May 13, 2024
- 4 min read
I hope youāve had a great week. Here in the UK the sun has been shining and itās made all the difference! šāļø
This weekāsĀ Fret Not FridayĀ is all about making sure you are investing in the right brands and products for your business.
Whether you were wowed at NAMM or the YouTube algorithm has ensnared you youāll regularly discover new brands/products that are riding the hype train and seemingly selling like crazy. Weāre a passionate and easily excitable bunch in the MI world and FOMO can sometimes lead to well-intentioned but albeit under researched decisions that could potentially cause headaches further down the line.
With that in mind itās important to take a calm step back before placing the big opening order and consider the following.
1. Demand and Desire š
First things first is there a genuine customer demand for the brand or product youāre considering? š¤ When thinking about stocking new products, whether itās a new electric guitar range or a smart harmonica with built in Spotify, ensure thereās a hungry market. Use tools like Google Trends to gauge interest or run quick polls on your social media to see what your audience thinks. Analysing sales data from similar products that you already sell can also provide a clear picture of potential success.
Remember, aligning your stock with consumer trends is important but donāt forget the most important advisors you have, your customers! Have they been asking for the new brand or product? Be careful not to choose brands on the basis you think theyāre cool while your customers think the opposite. š
2. Pricing Stability and Profit Margins š°
Whilst very few of us in MI are in it for the money š³ we do need to make money, right? Examine the pricing history of a brand. Are their prices stable, or do they fluctuate wildly with promotions and discounts? Your goal is to find brands with consistent pricing that allows you to plan for a sustainable margin.
Remember, a good deal isnāt just about the purchase price; itās about how much value it adds to your store. Ensure that the manufacturers price and the MSRP gives you enough room to be competitive yet profitable, without constant price wars eroding your bottom line.
3. Whatās the Deal? š
Is the dealership or distribution agreement exclusive to you? If not, do you have a favourable territory to target, or are there already competing businesses nearby? If you are a retail store an exclusive dealership could also provide an opportunity to act as a sub-distributor, expanding your reach even further. However, evaluate if this aligns with your business model. Consider if you are equipped to handle larger distribution responsibilities, also do you want competition from the retailers you supply?
4. Inventory Supply: Feast or Famine?šā ļø
Consistent supply is music to any business ownersā ears. A brand that struggles with stock consistency can lead to a feast or famine situation, affecting your companyās reliability in the eyes of your customers. Reliable supply chains are crucial for maintaining customer satisfaction and steady cash flow. Are products generally in stock(and where?) and quickly available or are they built to order? If so whatās the lead time?
5. Will You Be Supported? š ļø
Brand support isĀ instrumentalĀ š for your success. Efficient country-specific support helps in managing warranty claims and technical issues, enhancing customer trust. Robust warranty terms and clear policies on handling returns are fundamental considerations. Brands that provide training sessions, detailed product information, high quality images and effective merchandising materials empower your staff to offer passionate, informed customer service and product insights, which in turn enhances customer satisfaction and loyalty.
6. Take My Money š³
Payment terms are another critical factor to take into account. Brands that offer favourable credit terms can ease cash flow pressures, whereas those requiring pre-payment might strain your financial resources. This decision will affect how you manage inventory and finance growth.
7. Inventory Synergy š¶
Consider how the new brand fits with your current offering. Does it fill a gap, or could it potentially cannibalise sales of products you already stock? Look for brands that fill gaps in your line-up or cater to unmet customer needs. Think about your customer baseā are they asking for more entry-level choices, or do you need a better high-end offering? Stock brands that cater to these specific segments to ensure each product has its audience.
8. Unique Selling Propositions āØ
What makes this brand stand out? Brands that innovate tend to create buzz and attract attention, driving traffic and potentially more sales to your store. Unique products can be a major selling point in your marketing campaigns, helping to differentiate you from competitors. Just remember innovation doesnāt always pay off thoughā¦ Gibson Robot tuners anyoneā¦ š
9. Long-Term Partnership Potential š¤
Consider the brand's reputation and stability. Partnering with established brands that are invested in long-term growth will likely benefit your store. Additionally, assess their marketing initiatives. A brand with a strong social media following that actively promotes their products and supports their retailers with co-marketing efforts can amplify your sales. This can include joint social media campaigns, co-sponsored events, or exclusive launches at your store, which can increase foot traffic and elevate your store's profile.
10. Retailer Reconnaissance šµļøāļø
Lastly do some detective work by chatting with other companies who have had experience with the brand or products youāre eyeing. How do they feel about them? Are they happy with the sales rates, customer support and product quality? Insights from other retailers will nearly always give you the true story and are invaluable.
Thatās All Folks š·
So there you have it, a few things to consider before rushing in and placing your huge opening order for the hot new Swedish Nyckelharpa brand thatās just gone viral on Tik-Tok with the singing dog duet video. š¶š»
Of course the above donāt guarantee a brand or product will be a success for you by any means but doing a little research before investing your hard earned cash in a brand or product thatās new to you is always worth the effort in my opinion.
Have a great weekend and see you next week forĀ Fret Not Friday! š¤šøš
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