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Preparations For Your First Gift Tradeshow
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By Nadia Korths, craft programs coordinator/ANCA, Saranac Lake, NY, since 1997.
Excerpts from Norm Bacon, Bacon Studios, Bearsville, and Sweetwater Gallery, Woodstock, NY since 1982, Charlene Dunham, staff, in late 90s, for Adirondack North Country Products Booth at New York Gift Show and from Exhibit Marketing Trade Magazine, 2000
Start With Smaller Shows: |
Tips From a Craftsperson: |
Tips From A Retailer: |
Printed Materials: |
A Review of Credit Terms: |
Other Terms: |
Sample Terms from Four Producers: |
Buyers May Ask: |
Producers May Ask: |
How to Manage the Booth: |
Goal of Booth Exhibit: |
How to Wholesale: Another Viewpoint:
Start With Smaller Shows:
Begin exhibiting in a regional or state trade show. Attending buyers are more likely to work with new producers who are inexperienced. Remember that they are always looking for new product lines. Commit to your show/s because it can take up to three years of attending the same show before the buyers “see” your booth. As an industry guideline, shows should generate 6 to 8 times your expenses by the third year.
Smaller shows cost less and are less time consuming than larger shows. Show fees ($160 to 600) are much less than national shows ($1,000 to $2,500), the show venues are typically not unionized, and because they are not in major cities, show expenses are not as high. For those with limited product lines, shared booth options are generally available.
At smaller shows written orders will most likely be within your production capacity. It is also acceptable policy at a show to refuse orders when they are beyond your production capacity. It is much better in the long run to place buyers on a waiting list than not fulfill their order on a timely basis.
Remember, you are one of many exhibitors. Keep it simple! The buyers have many decisions to make and information to absorb. National shows can be overwhelming because of the numbers (700 to 2000 exhibitors), and at smaller shows (60 to 300 exhibitors), because buyers are more likely to take the time to learn the story and view the entire product line.
Tips From a Craftsperson:
Tips From a Retailer:
Printed Materials:
For those of you using software to generate the printed materials for the show, make only enough copies for the show. During the show, modifications to your printed materials may become apparent. Hand written forms, when legible and well laid out, are acceptable. What cannot be changed, of course, are your order and term obligations!
Business card:
business name, name, address including zip code, telephone number(s) including area code, website address, email address and/or fax number.
Sample sell sheet:
Sell sheets/catalogs/brochure/postcard of your product:
Do not include prices, especially if being done by a printer. Listing prices reduces the shelf life of the piece which should be your product showcase.
This piece targets half (industry average) of the buyers at trade shows. They do not order at the show. After the show they review all the product options, their budget, trends, seasonal sales expectations, etc., and then order. Include all contact info as on business card. May want to include product code (more under Price list).
Sample price sheet:
Make a grid. List your product lines; bowl, plate, mug along the side, and across the top, list the variations; small, medium, large, color options, etc.
If you have many product lines, code your products and variations to minimize misunderstandings. To code use numbers for product listings and letters for variations.
Exact dimensions can be included here or on order form. Buyers need to know size in order to be see product fitting in intended display area. Include all contact info as on business card. Include terms here and/or on order form.
Sample order form:
Duplicates are necessary, one for you to fulfill order and one for buyer. Include all contact info as on business card.
On top include buyer's business name, buyer's name, address including zip code, shipping address, (and if different, billing address) and order and shipping dates.
Include grid sheet for order writing in center. Include a column for price per piece, quantity of piece ordered and total ordered. Include shipping rate or policy. Include terms (more below) at bottom.
Feeling overwhelmed! Or you've just realized the show is next week! Here is an option for beginners:
Buy blank duplicate order forms at your nearest office supply store. Before the show, number your order forms and staple your contact info and terms to them.
Create a price sheet with at least two photos or illustrations of your main product categories or best sellers on top. There, you have just combined the price sheet and brochure into one piece!
Make copies. How many copies? Find out how many buyers come to the show and assume, that at the most, one out of ten buyers will come into your booth.
A Review of Credit Terms:
List on your order form one term option for each one; new and repeat accounts. Samples from four producers.
For New Accounts:
Mastercard/Visa Charge
(From Norm Bacon, Sweetwater Gallery, Woodstock, NY):
Collect credit card information from buyer at show.
The order form could state the the term as follows:
First time customer: Mastercard/Visa charge:
Credit card charged 30 days after order delivered
Advantages for both:
better cash flow
buyer automatically gets net 30 without references
buyer collect points towards travel and other show expenses
C.O.D
C.O.D - cash on delivery.
The buyer pays for the shipment upon delivery.
Usually UPS will accept a check unless specified “c.o.d. , cash only.” UPS adds a small charge for this service.
Will not work with PO Boxes.
Partial payment/Pre paid:
Usually requested by large item producers such as chandelier or furniture makers.
Producer will often pay shipping if an order is prepaid.
For Established Accounts:
Congratulations – the reorder means you have established an account. The buyer has sold the product she originally ordered from you and is placing their second order.
This is the beginning of a long term business relationship. Many turn to wholesale because they no longer wish to attend retail craft fairs every weekend. You have just converted, for the same amount in sales, interactions with 10 to 40 customers (and that only includes those that you sold to!) into one customer, the store buyer. The buyer is also motivated to provide you with front line feedback because they wish to make money on your product.
Net 30:
The buyer provides 3 credit references.
the payment is due in full within 30 days after product delivered.
interest can be charged on late payment.
The industry practice has been net 30 but payment by credit card is becoming more and more prevalent.
Some buyers, such as museums or larger shops, may have a net 60 to 120 day payment policy. Inform yourself.
Or one of your established accounts, with an excellent credit rating, may wish to order your new product line. Because their cash flow is already allocated elsewhere, you negotiate, ie, a net 60 payment date.
Pro Forma:
The producer bills the buyer for the order amount plus shipping charges.
The buyer sends a check or pays by credit card,
then the producer ships the order.
Held 30 (Norm Bacon):
buyer provides undated check for order which is held for 30 days.
Shipment goes out similar to C.O.D but without a C.O.D. Charge.
Buyer receives net 30.
Producer is paid for order within 30 days of shipping.
You may ask or state that you expect the buyer to agree to notify you if there is a delay in payment.
Other Terms:
Minimum order:
$100 to $250 is average range for minimum order. Many long time Buyer Days exhibitors do not require minimums. They have observed that buyers typically feel less restricted by no minimum order and will often order more.
Minimum orders are of value. Shop customers are more likely to buy from a wide selection of product displayed representing one producer than one or two items only. Some producers will request that the minimum order be their standard shipping container such as a box, crate, etc., a certain number of pieces or a certain mix of product.
Terms for shipping, packing and handling charges, and claims are listed in the samples below.
Sample Terms from Four Producers:
They include terms for shipping, packing and handling charges, and claims:
Producer #1 terms:
Minimum order: $200
7% charge for packing and handling, and buyer pays UPS Ground shipping
First order COD or prepaid. Subsequent orders net 30 with approved credit.
Reorders for non-current customers shipped COD.
Minimum shipping time is 4-6 weeks from receipt of order, unless otherwise specified by (producer).
Producer #2 terms:
Minimum order: $150.00
Minimum reorder: $50.00
Shipping: All orders F.O.B., (community, state) via UPS or USPS. Customer pays actual cost of shipping. Allow 2-3 weeks for delivery.
Terms: Pro Forma
Net 30/Open Account*
Prices: 50% retail
Subject to change without notice.
Visa/Mastercard accepted
Past due Accounts: 2% per month service charge
Claims: Damages and other claims must be made within 5 days.
*Please forward name/dba, address, banking institution, and four trade references. Allow 30 days for processing.
Producer #3 terms:
Minimum order 150.00. First order COD or prepaid, net 30 with reference. NY wholesale customers include tax (resale) number and form ST-120.
Shipping: $3.50 First item, $1.50 each additional. Add 8.50 for each larger item.
Producer #4 terms:
First orders must be prepaid (consult table for shipping charges).
All orders FOB (exhibitor Post Office community, state)
Additional $5.00 handling charge for orders less than $50.
Prices subject to change without notice. Damages must be reported within 10 days.
A service charge of @% per month, corresponding to a 24% annum, will be charged on balances 30 days past due.
Another shipping option is to deliver your product as part of a regularly scheduled route timed to be most useful for regional buyers. In the Adirondack North Country region, where most shops are seasonal, the crucial delivery time is from late May to late June with a possible run in early to mid August. Producer typically requests payment upon delivery.
How to Manage the Booth:
Smile!
When the buyers are walking the show aisles, watch your body language – ie., do not look like a guard with your arms crossed, do not spend time talking with other exhibitors, do not make calls or eat in front of buyers, and do not hurry to pack up and leave (it's amazing how many sales happen in that final half hour), do not read a book, do not sit.
Design the booth layout to make it easy for the customer to enter the booth. Once out of the aisle and into your booth, they are much more likely to look at your product.
Do not say “May I help you?” Try something like “I see you looking at “whatever product buyer first glanced at”, “That is one of my bestsellers.”
Take business cards from everyone to add to your database. After the show (more about follow-up below), compare your contact info with the list of buyers who attended and/or preregistered for the show typically provided to exhibitors by the show promoter.
Buyers May Ask:
Buyers come to trade shows to meet the artisan (to absorb some of the story) and to see/experience/sample the product. Buyers who are well informed about their the producers they represent can seal a sale by telling some of the story.
- Which lines are your bestsellers,
- how long have you been making the product line,
- how long have you had selling wholesale,
- how many wholesale accounts have you had and for how long,
- where do you sell your product; locally, regionally, in the northeast, across the nation.
Can you:
- Supply individual cards or tags for each piece,
- supply your story in the format most suitable for their display areas,
- supply private labeling (if so, cost should be on your price list and/or order form),
- do one-of-kind commission work,
- exhibit in a show in the buyer's gallery.
What type of exclusivity are you willing to offer:
- You am willing to give an exclusive in your zip code, town, hamlet. For Buyer Days exhibitors, selling your product in only one shop per community is the suggested practice.
- you are not willing to give an exclusive,
- you are willing to give an exclusive with an annual minimum purchase of $
- you am willing to give an exclusive on a certain item or items in your line.
Within the industry, the following is expected:
If you do a retail show in their area, you will charge a similar amount for the products they are selling on your behalf.
Producers May Ask:
The answers help to identify whether the shop is suitable to sell your product:
- Where is your shop located?
- What type of shop do you have (Adirondack, contemporary, country, Victorian, wholistic, handmade in America only, etc.)?
- Are you open seasonal or year round?
- What are your hours?
- How long has the shop been open?
- What percentage of your product is American made?
- What percentage of your product is Adirondack North Country made?
- What is your price point range?
- What are your best selling price points?
- How are your displays grouped? By theme, by room theme, by artisan, by media, mixed, etc.
- Is the bulk of your display in multiples, limited or one of each?
- How do you attract customers?:
- Where do you advertise:
- how do you regularly contact your customers
- direct mail, how many times a year
- email, how many times a year
- printed catalog, how many times a year
- online catalog
Goal of Booth Exhibit:
The goal is to give the buyer a clear understanding of the breadth of your product lines by displaying, when possible, one of each variation, without underwhelming or overwhelming them. Buyers avoid booths which are almost empty or much too full, especially when they are unorganized.
Make it as easy as possible for the buyer to visually grasp the depth and range of your product lines. Signage, lighting, a solid color background, prices and best seller tags on pieces, a grouping of like product and variations together, and posters easily readable from a distance listing publicity and awards are components of a booth welcoming to buyers.
Even at a cash and carry trade show where buyers will pay for and take product, inventory should be stored under the table displays, along a free wall, or in your trailer. Cash and carry shows provide buyers with substantial savings due to the savings on shipping costs. Vendors without inventory do not have to participate in the cash and carry component of the show.
How to Wholesale: Another Viewpoint
How to Half Wholesale #1
How to Half Wholesale #2
Luann Udell writes about preparing for wholesale shows in May 2008. The first article includes links to all of her articles on wholesale and related topics and the second talks about the how-to prepare for the show and minimize expenses.
http://www.americancraftguide.com/magazine_wholesaleforyou.html Is Wholesale for You
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