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Retailers Have Responsibilities To Manufacturers
March 20, 2008

It is so easy for us as retailers to ask what a manufacturer can do for us.  Can they offer us better freight rates?  Will they offer replacement parts and post-purchase service?  Will they compensate us for service calls?  These are all fair questions but only when asked by a retailer who upholds their end of the deal.  

It is the responsibility of retailers to insure that manufacturers have what they need from us.  We need to be ready to provide re-sale certificates or tax ID numbers.  These should be presented to a new manufacturer along with credit references during the first order.  This pertinent information should not be withheld until the second or third order or until you get around to getting it to the manufacturer.  Failure to submit these documents is a step in the wrong direction to achieving a working, profitable relationship between yourself and the manufacturer.

It is also imperative that the retailer pay their invoices in a timely manner.  This act can
either help or hinder your relationship with a manufacturer enormously.  I've said it before... paying your bills on time frees up finances for the manufacturer to promote brand recognition through advertising, develop new products, and provide better post-purchase service.  It also builds trust from the manufacturer to you, the retailer.  And whose product do you think will ship first?  I hear all the time that such-and-such is not shipping but I know for a fact that they will ship to anyone whose account is up to date.  First come, first serve... first pay, first shipped.

When you, as a retailer, do your part, you will see the manufacturers develop a new sense of respect for your company.  This respect will prove beneficial to all parties involved.  As for early-pay incentives on invoices... bonus!  Those manufacturers don't owe the retailers anything for paying on time.  If they offer it, though, why wouldn't you take them up on it?  This doesn't mean that you should hold off on paying the other manufacturers who don't have incentives. Au contraire.  Do your part to rebuild the overall relationship between specialty retailers and manufacturers.  You'll be AMAZED at the results!!!

(Special thanks to my manufacturer friend who brought the re-sale ID issue to my attention!)

Posted by Kelly Nelson on March 20, 2008 | Comments (0)