ColumnistsMay 16, 2024
The PR Adviser: What the Designer Should’ve DoneColumnistsMay 21, 2024
Successful Vendor Relationships: A Win-Win Approach
Sherry Smith shares tips for fostering successful vendor-retailer partnerships, from marketing investment to fast-seller replenishment.
Sherry Smith is director of business development at Edge Retail Academy, the leading jewelry business consulting and data aggregation firm. She can be reached at sherry@edgeretailacademy.com.
The jewelry industry thrives when both retailers and vendors succeed. In recent years, this balance has been disrupted, with retailers experiencing record growth while vendors faced uncertainty.
As a former retail store owner and current industry consultant, I’ve gained unique insights into fostering sustainable and successful vendor partnerships.
My belief is that a win-win scenario is achievable through collaboration and best practices.
Early in my career, as a member of a group of non-competing retailers, I learned the value of benchmarking and sharing proven strategies.
This collaborative environment provided a unique opportunity to identify areas for improvement within my own business, while also celebrating successes and learning from others.
Optimizing Inventory Management
Our initial approach to inventory management was flawed. I met with a limited number of our top vendors in-store, relying on sales reports to guide our reorders.
This resulted in a best-case scenario of two stock turns per year for a small portion of our inventory. This practice meant there were lots of missed opportunities.
The turning point came when I engaged in serious reset conversations with my top 12 vendors, making clear commitments to enhance our operational strategy.
— Regular Replenishment: Fast-selling items were replenished weekly, without fail.
— Training: Utilizing vendor-provided training, we enhanced our team’s product knowledge and brand differentiation.
— Marketing Investment: We committed specific marketing dollars to promote the vendors’ brands.
— Merchandising: Prime store real estate was designated for displaying these brands effectively.
— Financial Responsibility: We ensured timely payments to maintain good standing.
In return, I sought equitable terms from our vendors, such as a one-to-one stock exchange for underperforming items, which most agreed to.
This collaborative approach paid dividends. Our sales grew from just under $2 million to more than $4 million within 18 months on an inventory investment of $900,000.
This success was not only internal but also shared within our retailer group, fostering a community of learning and mutual success.
The Retailer’s Perspective
Retailers control several key factors that directly impact a vendor’s success. They are as follows.
— Sales Team: Are your sales associates well-trained and knowledgeable about the brand? Have you utilized vendor-provided training programs?
— Marketing: Do you consistently allocate marketing dollars to promote the brand? If it’s a new brand, did you have a product launch event?
— Merchandising: Is the brand prominently displayed in prime real estate within your store? Are you utilizing brand-specific merchandising elements?
— Sales Targets: Have you established clear sales goals for the brand, broken down by year and month?
— Open-to-Buy: Are you adhering to your budget and do you have an open-to-buy plan for the brand?
— Fast-Seller Replenishment: Do you consistently replenish fast-selling items on a weekly basis, even daily during peak seasons?
— Inventory Management: Are you avoiding overbuying, which can hinder cash flow and replenishment?
Related stories will be right here …
As a former retail store owner and current industry consultant, I’ve gained unique insights into fostering sustainable and successful vendor partnerships.
My belief is that a win-win scenario is achievable through collaboration and best practices.
Early in my career, as a member of a group of non-competing retailers, I learned the value of benchmarking and sharing proven strategies.
This collaborative environment provided a unique opportunity to identify areas for improvement within my own business, while also celebrating successes and learning from others.
Optimizing Inventory Management
Our initial approach to inventory management was flawed. I met with a limited number of our top vendors in-store, relying on sales reports to guide our reorders.
This resulted in a best-case scenario of two stock turns per year for a small portion of our inventory. This practice meant there were lots of missed opportunities.
The turning point came when I engaged in serious reset conversations with my top 12 vendors, making clear commitments to enhance our operational strategy.
— Regular Replenishment: Fast-selling items were replenished weekly, without fail.
— Training: Utilizing vendor-provided training, we enhanced our team’s product knowledge and brand differentiation.
— Marketing Investment: We committed specific marketing dollars to promote the vendors’ brands.
— Merchandising: Prime store real estate was designated for displaying these brands effectively.
— Financial Responsibility: We ensured timely payments to maintain good standing.
In return, I sought equitable terms from our vendors, such as a one-to-one stock exchange for underperforming items, which most agreed to.
This collaborative approach paid dividends. Our sales grew from just under $2 million to more than $4 million within 18 months on an inventory investment of $900,000.
This success was not only internal but also shared within our retailer group, fostering a community of learning and mutual success.
The Retailer’s Perspective
Retailers control several key factors that directly impact a vendor’s success. They are as follows.
— Sales Team: Are your sales associates well-trained and knowledgeable about the brand? Have you utilized vendor-provided training programs?
— Marketing: Do you consistently allocate marketing dollars to promote the brand? If it’s a new brand, did you have a product launch event?
— Merchandising: Is the brand prominently displayed in prime real estate within your store? Are you utilizing brand-specific merchandising elements?
— Sales Targets: Have you established clear sales goals for the brand, broken down by year and month?
— Open-to-Buy: Are you adhering to your budget and do you have an open-to-buy plan for the brand?
— Fast-Seller Replenishment: Do you consistently replenish fast-selling items on a weekly basis, even daily during peak seasons?
— Inventory Management: Are you avoiding overbuying, which can hinder cash flow and replenishment?
The Vendor’s Perspective
Vendors also have several key responsibilities in a successful partnership. They are as follows.
— Consultative Selling: Have you developed a strategic annual sales plan with the retailer?
— Overselling and/or Selling the Wrong Product Mix: Do you oversell inventory levels that could strain the retailer’s cash flow and ability to replenish fast-sellers?
— Fast-Sellers: Do you identify and quickly deliver top-selling items?
— Stock Balancing: Do you offer flexible stock balancing options based on the partnership agreement?
— Collections/Stories: Have you created curated collections or stories that resonate with consumers and make it easier for retailers to sell your products?
— Training: Do you provide comprehensive product knowledge training that highlights your brand’s unique selling points?
— Co-Op Advertising: Do you offer marketing support, such as camera-ready assets or co-op advertising funds?
Achieving a Win-Win Scenario
When retailers and vendors embrace best practices and focus on mutual success, the results can be remarkable.
In my own experience, implementing these strategies led to significant sales growth and strengthened vendor relationships.
This model not only propels sales but also builds a foundation of mutual respect and shared objectives.
Both parties must commit to open communication, collaboration, and a willingness to adapt.
Retailers should actively communicate their needs and expectations to vendors, while vendors should provide support and guidance to help retailers achieve their goals.
The Way Forward
As the director of business development for the Edge Retail Academy, I now lead a team dedicated to advising businesses on adopting these proven strategies.
Our daily interactions with retailers reiterate the value of mutual commitment and adaptability in achieving collective success.
Understanding and implementing these strategies from both the retailer’s and vendor’s perspectives ensures that both parties contribute to and benefit from the relationship, reinforcing the necessity for both to remain profitable and proactive in this dynamic industry.
Remember, a successful vendor relationship is a partnership built on trust, mutual respect, and a shared commitment to achieving mutual goals.
More on Columnists
The Latest
FinancialsNov 26, 2025
Movado CEO Talks Tariffs, Growing Interest in Accessible Luxury WatchesDuring its Q3 call, CEO Efraim Grinberg discussed the deal to lower tariffs on Swiss-made watches, watch market trends, and more.
TrendsNov 26, 2025
Piece of the Week: Rosior’s Pumpkin RingRosior’s high jewelry cocktail ring with orange sapphires and green diamonds is the perfect Thanksgiving accessory.
IndependentsNov 26, 2025
Greenwich St. Jewelers Launches Colorful Holiday CampaignThe “Embrace Your True Colors” campaign features jewels with a vibrant color palette and poetry by Grammy-nominated artist Aja Monet.
Brought to you by
Impacting Tomorrow TodayHow Jewelers of America’s 20 Under 40 are leading to ensure a brighter future for the jewelry industry.
MajorsNov 26, 2025
Serafino Consoli Names New VP of Sales, Brand Development for the AmericasLuxury veteran Alejandro Cuellar has stepped into the role at the Italian fine jewelry brand.
Weekly QuizNov 20, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Events & AwardsNov 26, 2025
Grandview Klein Presents 4 Scholarships in NamibiaThe company gave awards to four students at the Namibia University of Science & Technology, including one who is a Grandview Klein employee.
IndependentsNov 25, 2025
Pearl Stringer Margaret Hoisik DiesShe is remembered as an artist who loved her craft and was devoted to her faith, her friends, and her family.
Brought to you by
Roseco Releases New Full-Line CatalogRoseco’s 704-page catalog showcases new lab-grown diamonds, findings, tools & more—available in print or interactive digital editions.
SourcingNov 25, 2025
Finestar Opens Diamond Manufacturing Facility in JohannesburgIt joins the company’s other manufacturing facilities globally, including in India, Botswana, and Namibia.
TrendsNov 25, 2025
Amanda’s Style File: Polka DotsThe polka dot pattern transcends time and has re-emerged as a trend in jewelry through round-shaped gemstones.
CrimeNov 25, 2025
Former Arizona AG Official Charged With Trafficking Stolen JewelryVanessa Hickman, 49, allegedly sold a diamond bracelet that was mistakenly sent to her home.
Events & AwardsNov 25, 2025
GIA Awards Susan Jacques With Its Highest HonorGIA’s former president and CEO was presented with the Richard T. Liddicoat Award for Distinguished Achievement.
Recorded WebinarsNov 24, 2025
Watch: Top Tips for Social Media EtiquetteSocial media experts spoke about protecting brand reputation through behaving mindfully online.
WatchesNov 24, 2025
Breitling Reveals Plans for Gallet, Universal GenèveIn 2026, the three will come together as “House of Brands,” with Gallet sold in Breitling stores and Universal Genève sold separately.
CollectionsNov 24, 2025
Muse Debuts a Wicked 'Have a Heart x Cynthia Erivo' SequelThe second drop, which includes more Elphaba-inspired pieces from additional designers, will continue to benefit nonprofit Dreams of Hope.
IndependentsNov 24, 2025
J.R. Dunn Jewelers Names New PresidentSecond-generation jeweler Sean Dunn has taken on the role.
MajorsNov 21, 2025
Natural Diamond Council Names New CEOAmber Pepper’s main focus will be on digital innovation and engaging younger consumers.
SourcingNov 21, 2025
De Beers’ Branded, Traceable Diamonds Roll Out to 19 Retailers Called “Origin by De Beers Group,” the loose, polished diamonds are being sold in a total of 30 stores in the United States and Canada.
CollectionsNov 21, 2025
Piece of the Week: Melissa Kaye’s ‘Rocky Infinity’ NecklaceThe lariat necklace features a 4.88-carat oval-cut Zambian emerald in 18-karat yellow gold.
AuctionsNov 20, 2025
Vanderbilt Jewels Shine at Phillips Sale, Pink Diamond WithdrawnA 43-carat sapphire brooch from the Vanderbilt collection was the top lot of the Geneva sale.
CollectionsNov 20, 2025
Rebecca Rau Jewels Debuts With ‘Then & Now’ CollectionRau is a fourth-generation art and antique dealer from M.S. Rau gallery whose first jewelry collection merges artifacts with modern design.
Policies & IssuesNov 20, 2025
RJC Names New Executive DirectorFormer De Beers sustainability leader Purvi Shah will take over the role in February 2026.
WatchesNov 20, 2025
LVMH Takes Minority Stake in Citizen Group-Owned Movement Maker La Joux-Perret is based in La Chaux-de-Fonds, Switzerland, and makes solar quartz as well as mechanical watch movements.
GradingNov 20, 2025
Julia Griffith Joins SSEF as Head of EducationShe previously taught at Gem-A and is the founder of The Gem Academy.
CollectionsNov 19, 2025
Larkspur & Hawk Celebrates 25 Years With Helena Bonham Carter CampaignThe British actress and her daughter modeled pieces from the brand’s new “Palette” capsule for its “Once Upon a Time” holiday campaign.
TechnologyNov 19, 2025
Google Has a New Form for Reporting ‘Review Bombing’ Attacks Plus, the tech giant shares the steps retailers should take if they believe they’re a victim of a review extortion scam.
IndependentsNov 19, 2025
Houston Jeweler Keith Shaftel Retires, Next Generation Steps In Danny and Gaby Shaftel are now Shaftel Diamonds’ CEO and chief operating officer, respectively.
