I hope youâve had a great week. Here in the UK the sun has been shining and itâs made all the difference! đâď¸
This weekâs Fret Not Friday 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 youâll regularly discover new brands/products that are riding the hype train and seemingly selling like crazy. Weâre 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 itâs important to take a calm step back before placing the big opening order and consider the following.
1. Demand and Desire đ
First things first is there a genuine customer demand for the brand or product youâre considering? đ¤ When thinking about stocking new products, whether itâs a new electric guitar range or a smart harmonica with built in Spotify, ensure thereâs 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 donât 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 theyâre cool while your customers think the opposite. đ
2. Pricing Stability and Profit Margins đ°
Whilst very few of us in MI are in it for the money đł 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 isnât just about the purchase price; itâs 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. Whatâs the Deal? đ
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?đâ ď¸
Consistent supply is music to any business ownersâ ears. A brand that struggles with stock consistency can lead to a feast or famine situation, affecting your companyâs 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 whatâs the lead time?
5. Will You Be Supported? đ ď¸
Brand support is instrumental đ 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 đł
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 đś
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 baseâ 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 â¨
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 doesnât always pay off though⌠Gibson Robot tuners anyone⌠đ
9. Long-Term Partnership Potential đ¤
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 đľď¸âď¸
Lastly do some detective work by chatting with other companies who have had experience with the brand or products youâre 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.
Thatâs All Folks đˇ
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 thatâs just gone viral on Tik-Tok with the singing dog duet video. đśđť
Of course the above donât 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 thatâs new to you is always worth the effort in my opinion.
Have a great weekend and see you next week for Fret Not Friday! đ¤đ¸đ
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