SMALL BUSINESS : LEARNING CURVE: Business Lessons From Southern California Entrepreneurs : Lots of Pros to Handling Vendors Like a Pro
Grayce Baldwin started working in the fashion industry as a buyer, merchandiser and designer in the 1970s. She taught fashion merchandising, then became a gourmet chef and opened a catering service that was wiped out in the Northridge earthquake. She transformed that business into a fine arts studio and custom gift store and now specializes in finding one-of-a-kind gifts for her corporate clients. She says she approaches vendor relations with the professionalism she used when she represented large department stores. Baldwin was interviewed by freelance writer Karen E. Klein.
*
I have a 500-square-foot store, open by appointment, but I was trained as a fashion buyer and worked for some of the finest department stores in the world. Part of my mind-set is still there, so, when I walk in to a vendor, I really take control of the situation. Above all, whether I’m at a convention, a gift show, a mart or a tiny antique store, I always act professionally.
A lot of small-business people unfortunately don’t know what they’re doing when it comes to purchasing. What I try and do is make the vendor’s job simple. I save them time and money, so they want to sell to me. For one thing, I return all my phone calls. Even if I don’t want a vendor’s merchandise, I call them back and treat them with respect. They remember that, and I will always get the same respect from them if we do business in the future.
Before the vendor pulls out a credit application for me to fill out, I hand them a graphically pleasing form I’ve developed that shows my excellent credit history, which I’ve built up laboriously over the years, and all my references. I save them work, and I have time to really shop instead of filling out their forms. I also have stickers that I’ve made up with my name, address, resale number--everything they would ever need to fill my order--to make life easier for them. It puts me in a good position when it comes to negotiations.
When a vendor has merchandise that I’m interested in, but their minimum order is too high for me, the first thing I do is take out photos of my store, which is laid out so creatively and so unusually that the vendors want to see their merchandise on my shelves. I tell them that I’m going to give them an order for exactly what my store needs, then I give them a delivery date, including a start date and a completion date, leaving them plenty of time to check my credit references, and I tell them that if my order fits their requirements to please ship it. If they don’t want to sell to me I tell them not to ship. So far, I’ve only had one vendor who refused to ship my order.
My philosophy is to take charge of the buying process, not to let the vendor dictate to me. I hear about stores that have been around five or six years that are still paying for their merchandise C.O.D. I never, ever accept a C.O.D. because then I’d be spending my money before the merchandise performs at all. The merchandise needs to pay for itself by being on the floor at least 30 days before the invoice comes due.
I’m very loyal to my regular vendors. Sometimes I give them pictures of how I’ve displayed their merchandise in my store and they show them to their customers or use them to inspire their salespeople.
I also like working with new vendors and craftspeople who are not jaded and not taking the easy way out. If a new company is smart, they’ve done their homework and looked for the voids in the marketplace, so they’re interesting to me because they are putting out something that’s unique. New vendors sometimes can’t get to first base with the larger stores, but I will take some things on consignment if I think they would make a great addition to my product line.
If your business can provide a lesson to other entrepreneurs, contact Karen E. Klein at the Los Angeles Times, 1333 S. Mayflower Ave., Suite 100, Monrovia, CA 91016 or at kklein6349@aol.com. Include your name, address and telephone number.
(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)
At A Glance
Company: Just Leave Everything To Us
Owner: Grayce Baldwin
Nature of business: Gift studio/gallery
Location: 6863 Camrose Drive, Los Angeles 90068
E-mail address: jletu@webtv.net
Founded: 1989
Employees: 3 part-time
Annual revenue: $150,000
