The nicest gift a retailer in this space can get for the holidays is something they can use all year round: a really good distributor.
Finding a dependable, professional vendor partner under the tree—one that will help with slow-moving products, provide point-of-sale materials, offer discounts, help with promotions, ship reliably, provide strong customer service, and more—can maximize all-important holiday sales, and keep the momentum going throughout the year.
But choosing the best distributor partner isn’t easy, making it absolutely critical.
Different types of distributors offer different benefits, says Alex Mirzaian, Sales Manager for Magma Holding Inc.’s nine-year-old EightCig Distribution in North Las Vegas. For example, exclusive distributors generally offer better pricing and exclusive, first sneak-peeks into products.
Retailers working with specialty distributors can get special products that can’t be found anywhere else, Mirzaian adds. His firm offers one-on-one support for retailers “to help them get first exclusive sneak peeks into products, along with special pricing and promotions.”
EightCig operates a 75,000-sq.-ft. warehouse, as well as three regular delivery services and a trio of freight/LTL services “to make sure we’re offering the best prices for the fastest shipping,” according to Mirzaian.
For the holidays, Mirzaian advises that distributors should provide retail clients with more promotional materials.
A distributor’s shortcomings can become more obvious during the critical holiday crunch. What are the signs that a retailer is working with the wrong distributor? One, Mirzaian says, is “if the distributor is not willing to help the retailer with pricing or product defects. Disposables and devices are electronic, which means they can be faulty. eJuice can definitely go bad. If a retailer gets a bad product, they should be able to return it for store credit.”
Local/Regional Partners
Geography can play an important role.
“Overall,” explains Robert Poole, the CEO of Phresh Picks, a distributor based in Albuquerque, New Mexico, “it’s very important for retailers to partner up with strong local/regional distributors. In addition to faster transit times and overall rapport and service with your closest geographic distributor, you can get same-day or next-day service. Your local distributor probably also readily stocks items that are hot in that region.”
At the same time, though, Poole is also convinced that stores can often save more money buying from a large distributor as opposed to buying directly from, say, five brands. “It is not only in dollar-for-dollar cost but also just the time and energy of placing five manufacturer direct orders versus one larger order to just a single distributor.”
Distributors typically have a niche, Poole points out, and retailers should take advantage of that fact. “Find your vape guy, find your kratom guy, and find your accessories guy. Consolidate so you can focus on other areas of your business, and just overall have more free time to enjoy life more. Some retailers insist on being direct, but more and more, we are seeing budget-conscience customers switching to a distributor for a multitude of reasons.”
During the holiday season, it is “especially important to partner up with someone you trust will execute,” Poole emphasizes. “There are a few times per year that you really have to get after it, while the getting is good. You do not want to hear excuses during peak sales periods.”
‘Good Stuff’
Ginny Saville, the owner of Botany Bay in Lexington, Kentucky, as well as a local activist, says she uses all kinds of vendors, from only a few products from direct sources to an array of merchandise from full-service distributors.
When it comes to pricing and discounts, Saville says, “Most vendors are price-competitive. They should definitely give you discounts and free shipping to reward you for loyalty and/or large orders.” Marketing, she continues, is another vital area. “It’s always good when manufacturers or someone is promoting their products. It makes a big difference. If people have seen something on TikTok, they’ll buy it.”
Value-added services can include anything from tailored marketing for various territories to managing warranties, helping with slow-moving products, POS materials, providing field sales reps, and tracking retailer sales data.
“All of that is good stuff,” Saville insists. “The more vendor support, the better. My preference on warranty issues will depend on the product, but I like to help my customers and then have the vendor take care of it with me. They should take back, or credit somehow, the stuff that doesn’t move. It pisses me off when they’ve made money selling it to me, and I’m stuck. I always feel like a strong relationship (should mean) we share that cost instead. My favorite vendors visit us onsite so they can see what it is they can do for us. I like visiting their warehouses, too.”
Around the all-important holiday season, distributors can help retailers by seeing to it that they themselves are fully stocked “so that we can be fully stocked before the beginning of the season,” says Saville. “Planning is key to a successful holiday season.” They can also help, she adds, by providing extras for giveaways and helping share the cost of sales.
“Bottom line: most of them won’t do anything if you don’t ask, and you might be surprised at how many can and will help,” Saville concludes. “Keep your requests reasonable; we are all in business to make money. Once you have established this kind of relationship with a vendor, they’ll have their own ideas, and your success together can continue to grow. Vendors are partners.”
