Columnists

Successful Vendor Relationships: A Win-Win Approach

ColumnistsMay 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.

National Jeweler columnist Sherry Smith
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?


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.

Sherry Smithis director of business development at Edge Retail Academy, the leading jewelry business consulting and data aggregation firm.

The Latest

Victorian Burmese sapphire and diamond brooch
AuctionsApr 04, 2025
25-Carat Burmese Sapphire Brooch Sells for $101K

A pink topaz Belle Époque pendant-brooch and a Victorian Egyptian Revival choker were also highlights at a recent Anderson & Garland sale.

Mason Kay International Jade Summit 2025 Graphic
SourcingApr 04, 2025
Mason-Kay Jade to Hold Inaugural International Jade Summit

The event, which will co-locate with the Monterey Bay Jade Festival, will bring education sessions focused on jade to the United States.

Heather B. Moore Lily of the Valley Oval Charm
CollectionsApr 04, 2025
Piece of the Week: Heather B. Moore’s ‘Lily of the Valley’ Charm

The charm is a celebration of springtime as April showers bring May flowers with the piece’s cluster of diamond raindrops.

bench jeweler 1872x1052.png
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They Deserve

Bench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.

Stock image of people shopping in a mall
SurveysApr 03, 2025
2025 Retail Sales to Grow More Slowly Amid ‘Uncertainty,’ Says NRF

The National Retail Federation expects retail sales growth to return to pre-pandemic levels as consumers continue to face inflation.

Weekly QuizApr 03, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Tallulah Willis’ Engagement Ring
TrendsApr 03, 2025
Tallulah Willis Imbues Antique Engagement Ring With Magic

The 4-carat, old mine brilliant-cut diamond engagement ring was co-designed by Willis and New York City-based brand Karina Noel.

158.2-carat yellow diamond from Diavik
SourcingApr 03, 2025
Canadian Mine Produces 158-Carat Yellow Diamond

Rio Tinto unearthed the diamond at its Diavik mine in Canada’s Northwest Territories.

Facets-of-Fire-Difference-You-Can-See.jpg
Brought to you by
Natural Diamonds Should Mean More

Natural diamonds mean more than lab-grown, but when every cut is ideal, they all look the same. Customers want more—Facets of Fire delivers.

Buccellati Naturalia exhibition
CollectionsApr 03, 2025
Buccellati to Open Immersive Exhibition in Milan

The multisensory experience, open April 8-13, will feature the brand’s silver creations among dream-like scenes of natural landscapes.

Jewelers of America logo
Policies & IssuesApr 03, 2025
Jewelers of America to Hold Webinar on Tariffs

The virtual event will take place April 7 at 3 p.m.

Bea Bongiasca Animali Tarallo Collection Royal Blue Tang Fish “Dory”
CollectionsApr 02, 2025
Bea Bongiasca’s ‘Tarallo’ Collection Expansion Is a Zoo

The pieces in “Animali Tarallo” portray animals from stingrays to elephants through portraits and interpretations of their patterns.

Neiman Marcus Downtown Dallas store
MajorsApr 02, 2025
Neiman Marcus’ Dallas Flagship Will Remain Open, For Now

Parent company Saks Global said the iconic location will be open through the holiday season as it decides what to do with the space.

Natural color diamonds on display at Smithsonian National Museum of History
SourcingApr 02, 2025
Winston’s Collection of Natural Color Diamonds Now on Display in D.C.

Ronald Winston, son of Harry Winston, donated the diamonds to the Smithsonian National Museum of Natural History in Washington, D.C.

Punchmark
Events & AwardsApr 02, 2025
Punchmark to Host Client Workshop

The educational event will take place in Charlotte, North Carolina, this May.

Bergman Jewelers family
IndependentsApr 01, 2025
Bergman Jewelers in Omaha Closing After 137 Years

The independent jeweler first opened its doors in 1888.

QVC Group Inc. logo
MajorsApr 01, 2025
QVC Group to Cut 900 Jobs in the U.S.

The layoffs come amid the TV shopping channel’s efforts to restructure and focus on live shopping through social media.

Coconut Grove Jewelry & Watch Show
Events & AwardsApr 01, 2025
U.S. Antique Shows Adds Fall Show in Florida

The debut event will take place in Miami’s Coconut Grove neighborhood this fall.

The Jewelry Symposium (TJS)
Events & AwardsApr 01, 2025
TJS to Host Discussion on Jewelry Industry’s Labor Shortage

The roundtable will take place May 17 ahead of the trade show’s welcome dinner.

Peanuts x Monica Rich Kosann Collection Bracelets
CollectionsApr 01, 2025
Monica Rich Kosann Says ‘Good Grief’ in Peanuts Jewelry Collection

The “Peanuts x Monica Rich Kosann” collection features the comic strip’s classic vocabulary across 10 bracelet designs.

Graphic for What Do We Mean When We Say “Recycled” Gold webinar
Recorded WebinarsMar 31, 2025
Watch: What Do We Mean When We Say ‘Recycled’ Gold?

Three industry experts dive into the complexities of the material often marketed as an “ethical” alternative for metal in jewelry.

Mindi Mond Clarity Earrings
TrendsMar 31, 2025
Amanda’s Style File: Dripping in Diamonds

Diamonds are not only one of the most prominent gemstones, but the birthstone for those born in April.

Lashbrook ring
MajorsMar 31, 2025
Lashbrook Expands Into Luxury Golf Gifts With Acquisition

The Utah-based company known for making wedding bands has acquired Doubloon Golf.

Bulgari and LVMH Watches CEO Jean-Christophe Babin
WatchesMar 31, 2025
Bulgari CEO Jean-Christophe Babin Will Also Head LVMH Watches

The longtime luxury executive led one of LVMH’s watch brands, TAG Heuer, for 12 years before taking over Bulgari in 2013.

Surveillance footage of robbery
CrimeMar 28, 2025
2 Suspects Arrested in $1.7M Smash-and-Grab Robbery of NY Jewelry Store

Authorities said the robbers fled with jewelry and 70 Rolex watches, later taking pictures of themselves posing with big stacks of cash.

Nephrite and Jadeite by Heinrich Fischer, Richard W. Hughes
SourcingMar 28, 2025
19th-Century Jade Book Now Available in English

Lotus Gemology founder Richard W. Hughes has translated Heinrich Fischer’s 1880 book “Nephrit und Jadeit” from its original German.

LÖF The Valentine Ring
CollectionsMar 28, 2025
Piece of the Week: Löf’s ‘The Valentine’ Ring

The ring's design features contrasting lines influenced by work from architecture-inspired photographer Nikola Olic.

Eggs on a shelf
SurveysMar 27, 2025
Consumer Confidence Falls in March Amid ‘Gloomy’ Outlook

The Conference Board’s index fell as consumers continued to worry about the impact of tariffs, the labor market, and the price of eggs.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy