Analyzing and selecting

resources
Vishal
Suraj
snigdha

Analyzing and selecting

resources
After determining what merchandise
to buy and how much to buy , the
buyer must find merchandise
resources.
Resources are also refered to as
Vendors
Suppliers
Manufacturers

Sources of information on Where to

buy?
Past experiences
Buyer keeps records , and these records
can supply material for judging the
success and failure of resources that
have been used in the past .
Past experiences recorded over a period
of time, can provide a solid basis on
which to judge the expansion or
contraction of business with resources
already working with the buyer

 Trade publications
Trade publications are a major part of the
communication system of fashion merchandising.
These publications are a source of professional
news about industry developments.
Buyers read several trade publications to keep up
with current events that relate to style
developments, new breakthroughs in technology,
trends in color and silhoutte and resources in
formation- whos hot, whos not, whos new,
whos left the business

 Resources themselves
Many resources spend time and money
keeping in touch with buyers and telling
them what they are planning.
Representative of various resources
contact buyers to put their best foot
forward .

 Comparison shopping
Walking through the the diifferent stores
to determine what is selling and what
resource it came from.

Trade shows and market centers

Visiting market center , a regional mart
or a treade show can be quick and easy
way of discovering and learning about
new reources

 Resident buying offices

Buyers receive printed bulletins from the RBO ,
which recomends new resources , new trends,
price levels, and merchandise availability

Reporting services
Services such as the retail news bureau report
on new resources as well as on advertised
merchandise that is selling well in various
other retail stores and the manufacturer
supplying this merchandise.

Selecting factors in choosing

resources
Suitability of merchandise
The merchandise must be compatible
with the needs and wants of your
customer
No matter how good the delivery , how
sharp the price is, if the merchandise
the vendor produces for your target
customer is not right , the vendor is not
considered

 Meeting store merchandising policies

Vendors should meet the criteria of the stores
policies
exclusives: resources may make your store the only
store in your trading area to carry their merchandise
National private brands: buying from a resource
whose merchandise has ultimate customer
recognition is helpful to a buyer.
Nationally advertised brands have become well
known and accepted by the customers because of
time and effort spent by the resource in targeting its
merchandise to a certain customer

Pricing
The pricing of a resources
merchandise is a decisive factor if it
will be selected by the consumers.

Ideal Policy
Pricewise, if your store carries goods
in only certain price points, then
resources with the prices above or
below your established pricing policy
should not be considered at any cost.

What else to look for?

Take a look into how the resource
prices its merchandise during the
clearance or during the peak selling
season.
Look for conditions to get specially
priced merchandise.

Choosing your resource and market

leadership
Timing is very crucial in achieving or
maintaining leadership in the market.
You must have the goods in place
when the customers want them.
To achieve this, your resources must
be producing and supplying in such a
manner that you are able to deliver
to your customers at time.

How to maintain Quality Standards?

The buyer plays the most important role
here.
The buyer, according to the stores
merchandising policy must set a particular
quality standard for the merchandise.
The buyer must check if the merchandise
from the resource is consistent in terms of
agreed upon quality standards.
The buyer must do regular inspections of
the received merchandise.

Production Capacities
Production capacity of a resource also plays a
vital role, if you can rely on that resource or not.
For example- A small resource might be perfect
for small batches of exclusive styles but may
not be perfect for large order quantities of
staple styles. Similarly a large resource may
have minimum order quantities and can not
provide you with small orders.
The ability of the resource to control and
maneuver its production capacity is of mutual
advantage to both buyer and resource.

Distribution Policies
Different resources have different distribution
policies.
For example- Some resources may have a line
exclusively reserved for you. Some maybe
selling to more than one retailer in a specific
trading area, but the buyers will be of different
price and fashion level. While some of the
resources might be selling to anyone who comes
to their office including your direct customer.
Therefore, it is really important to look into the
distribution policy of a resource before hiring it.

Concentration Of Resources
The primary goal of any buyer is to do
business with the most suitable company
resources.
A long term relationship between any buyer
and company is extremely beneficial.
Repeatedly used recourses by buyers KEY
or PREFFERED resources.
Key resources are important to buyer in
terms of sales volume, exclusivity, service
and store image.

Comparison
Advantages
Preferential deliveries are
made for large opening
orders and deliveries.
Cooperative advertising
money may be forthcoming.
Advertising and display aids
and materials are provided.
Markdown money is given for
slow selling styles.
Returns are allowed for poorselling styles.
Sales training and premium
inducements for sales help
are offered.
Cancellations are allowed.

Disadvantages
Using only key resources can
limit stock assortment.
Little opportunity is given to
new resources.
There is limited freedom of
choice.
Risks exists of key resources
merchandise not meeting
customers want every
resources.
Risk exists of key resources not
having the desired fashion
image after season.

Resource Services
Resource services are those services provided by
the company to the buyer that makes the resource a
valuable partner in the business of satisfying the
needs of the retailers customer.
The variety of services that may be available vary
with the classification of the merchandise, the type
of store, and the importance of the resource to the
buyer- and of the buyer to the resource, as
determined by the volume of good ordered.
Mostly its buyer who decides whether the service
available is in the best interests of the store and its
customers.

Service vendors Provides to Retailer

Sales person Selling
Sales training for stores salesperson
Training program for salesperson for selling the
vendors product.
Vendor-employed demonstrators assigned to the
store.
Securing the merchandise and provide warranty.
Advertising
Layouts for print ads to which the retailer can add
its own logo and store information and then submit
to print media.

 Radio and TV Scripts

Copies of manufactured-prepared ads for use in direct mail and
package interests.
Cooperative advertising allowances.
Visual Merchandising
Sample merchandise and package for display.
Display fixture and signs.
Videotapes and sound/slide programs for instore customer
viewing
Inventory
Vendor prepared price tickets.
Warehousing of purchased goods.
Assistance with inventory control
Financing
Extending Credit
Consignment Selling
Return Privileges

Vendor Analysis
Based on
Previous selling experience (used to
eliminate unsuccessful resource
and concentrate with better ones.)
Rating of suppliers (based on how
accurately their merchandise
meets customers need.)
Financial and dealing records with
vendors (helps to see if a resource
has added to the past seasons
profit or to its loss)

Profitable Resource
Relations
Good resource relations are
characterized by cooperation rather
than by conflict.
Resource relations are largely
determined by the buyers sense of
loyalty.
Developing too close relationship
sometimes affects objectivity and
make it hard to be impartial in
seeking the best merchandise at

Types of buyers based on

loyalty
Buyers who feel no obligation to the
resource ,only to themselves and the store.
Buyers who have more loyalty to key
resources which treat them like VIPs and
which can be relied upon in a search for a
new buying position elsewhere.
Professional buyers who recognize their
obligations both to the store and to the
resource.

Key points to ensure profitable

resource relation
Constantly review your resource mix, classification by
classification.
Allow each resource the opportunity to reach its potential.
Do not overdo the concept of key resource ,Always be open
for new exciting items from new or off beat sources.
Confirm in writing as quickly as possible all agreements
with resources ,thus misunderstanding can be avoided.
Set and keep schedules for seeing resources
salespeople .Even if you cant buy ,there is always new to
see and learn.
Avoid making appointments you cant keep.

 Avoid snap judgements in eliminating or

changing resource, its the performance
of resource over long period that counts.
Always remember resource rate you and
analyse the profitability of doing business
with your store.
They rate your store on how well it does
with their merchandise and also on the
fairness with which you treat them .

Production to Specification
For any buyer, who is doing specification buying, it
is really important that the resource manufactures
the merchandise according to the directed
specifications.
The resource must have qualified specification
specialist who can understand and interpret the
provided specifications.
Many giant retailers also assist their resources to
produce according to specifications.
In simple words, the resource must be able to
interpret what actually the buyer wants and act
accordingly.