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
Events & AwardsOct 17, 2025
An Edit of Italian Jewels Is Coming to NYCThe new showcase dedicated to Italian jewelry design is set for Oct. 29-30.
TrendsOct 17, 2025
Piece of the Week: Judi Powers Jewelry’s ‘Stella’ EarringsTake a gaze at the sky with this pair of platinum diamond-set star earrings with blue lace agate drops.
IndependentsOct 17, 2025
From the Jazz Age to the Information Age: London Jewelers Turns 100In 2026, the jewelry retailer will celebrate a milestone only a small percentage of family-owned businesses survive to see.
Brought to you by
Protect Your Customers and Your BusinessYou deserve to know what you are selling–to protect your customers as well as your business and your reputation.
IndependentsOct 16, 2025
Retailer Hall of Fame 2025: Jeffrey Zimmer Jeffrey Zimmer's decades of leadership at Reeds Jewelers are defined by integrity, a love of sourcing gemstones, and a heart for community.
Weekly QuizOct 16, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
AuctionsOct 16, 2025
Sotheby’s Introduces Custom Jewelry ServiceThe new high jewelry design and production process takes 30 days or less from concept to completion, the auction house said.
MajorsOct 16, 2025
Oscar Heyman’s Holiday Catalog Is Out, and It’s SpectacularThe holiday catalog for 2025 features never-before-seen images of more than 100 one-of-a-kind masterpieces.
Brought to you by
JA New York Fall Is Right Around the CornerThe upcoming show provides savvy retailers with the opportunity to stock their cases with best sellers in advance of the holiday season.
CollectionsOct 16, 2025
Foundrae Adds To ‘United in Love’ CollectionThe brand has released a second installment of its collection of traditional and non-traditional commitment heirlooms.
IndependentsOct 15, 2025
Retailer Hall of Fame 2025: Kathy CoreyCorey rescued New England chain Day’s Jewelers, preserving its legacy with strong people skills, pragmatism, and a “get-it-done” attitude.
CrimeOct 15, 2025
Men Receive Lengthy Prison Sentences for 2023 Murder of Colorado JewelerCharles Robinson Shay was sentenced to life in prison plus 120 years while his accomplice, Michael James McCormack, got 75 years.
Events & AwardsOct 15, 2025
‘Douriean Fletcher: Jewelry of the Afrofuture’ Opens at MADThe Museum of Arts and Design's new exhibition features 75 pieces by the designer, best known for her work in the “Black Panther” films.
Events & AwardsOct 15, 2025
JCK, Luxury to Debut New Watch Section in Vegas Next YearTimepieces at Luxury will take place at The Venetian and, like Luxury, will be invitation-only for the first two days.
AuctionsOct 15, 2025
Christie's Announces New Jewelry Department LeadershipThe auction house named a new global head of jewelry, as well as a new head of the jewelry department for the Americas.
IndependentsOct 14, 2025
Retailer Hall of Fame 2025: Tom DixonAs chairman of Schwanke-Kasten Jewelers, Tom Dixon has been tasked with honoring the past and shaping the future of the family-run store.
Events & AwardsOct 14, 2025
Here Are the Winners of the BIJC, JA ‘Emerging Jewelers’ Grant Katty Villapando Lyte and Mica Rencher received a $10,000 grant for their business, Shimmer Culture LLC.
IndependentsOct 14, 2025
Day’s Jewelers Crafts Custom Jewelry for No.1 NBA Draft Pick Cooper FlaggThe parents of the Dallas Mavericks rookie bought their engagement ring at a Day’s store in Bangor, Maine, in 1997.
SourcingOct 14, 2025
Pragnell Debuts Kitulo Garnet Jewelry The UK-based brand sourced the gemstones, which are fully traceable, from an artisanal mining community in Tanzania.
CollectionsOct 10, 2025
Count Down to the Holidays With Astrid & Miyu’s Advent CalendarsThe trio of Advent calendars include a version with 18-karat gold and lab-grown diamond jewelry in a red lacquer jewelry box.
CollectionsOct 10, 2025
Piece of the Week: Marla Aaron’s ‘Nymphenburg Lock’Created in collaboration with Nymphenburg Porcelain, the lock is part of a four-piece collection that took two years to bring to fruition.
MajorsOct 10, 2025
Frederick Goldman Names New VP of SalesJewelry industry veteran Alisa Bunger has taken on the role.
SourcingOct 09, 2025
Feriel Zerouki Is Leaving De Beers The company and industry leader’s two-decade tenure with De Beers will come to a close at the end of the month.
AuctionsOct 09, 2025
This Fabergé Egg Could Crack $27M At Auction“The Winter Egg” set the world auction record for a Fabergé piece twice at previous Christie’s sales.
MajorsOct 09, 2025
Sy Kessler Buying Watch Batteries as Silver Hits Record High The company will pay 1.5x silver’s current spot price for each pound of silver oxide batteries submitted.
CollectionsOct 09, 2025
Katkim Launches First Men’s CollectionThe line includes a “Shadow” series crafted exclusively for the new men’s offering and reimagined styles from the brand’s core collections.
SourcingOct 09, 2025
Gemfields’ Mini Mixed-Quality Ruby Auction Garners $11MThe rough on offer was recovered from a newer area at the Montepuez mine.
SourcingOct 08, 2025
In ‘Storied Diamond,’ Jared Jewelers Is Emphasizing the Journey The retailer’s new collection of engagement rings and fashion jewelry is set with natural diamonds that are traceable via blockchain.
