A new supplier that I have contacted is saying that they require us to take stock in order to become an authorised retailer. How to get around this?
This type of response is an example of a supplier trying to weed out the dabblers - E.g. Maybe you just want a wholesale discount to purchase for yourself.
The response to this objection is covered in the 'Supplier FAQ Responses' downloadable sheet available underneath module 4.3. An example response is also listed below.
Remember, these are often just 'gate keeper' responses to find out how serious you are. As you are armed with the knowledge from the course and you are not a dabbler, with the correct responses you should be able to get around this type of objection!
Our response to the objection of requiring stock:
"We can hold stock as we have access to a shared warehouse (our freight forwarder). However, when working with a new brand, we always start on a "direct to customer" dispatch arrangement.
This way, once we start to notice that we are selling 5-10 products from one particular brand per month, at that point we can decide which units we may take stock of."
This can be so powerful - this way you are not promising that you will take stock, simply overcoming the objection. This shows you're serious and it proves you have the ability to take stock and will consider it once their products prove themselves.
Remember - once you're sending them £20k of orders per month - they'll soon stop worrying about you taking any stock.
Also, if you have identified this supplier as a supplier of one of your direct competitors, then they must be already working with retailers using the same business model as you. You can name drop these other retailers and mention that you would like the same business arrangement as them.
"When starting, we always begin with a non-stocking dealer account.
This way we can invest our budget in raising awareness of your brand with customers through paid marketing channels.
This allows us to focus more on bringing you sales and offering exceptional customer service."