INDUSTRY FORUM
Support Specialty Sales Reps! by Alan Blumberg, Principal at RBG Sales and North East Toy Show The specialty toy business is sometimes referred to as a threelegged stool with vendors, retailers, and sales reps each representing a leg: remove one, and the stool tips over. Faire is a new disruptor that is trying to remove one of the legs, and we are wondering if our industry is interested in keeping the chair standing. Disintermediation is a big word created for companies that find a way to remove a person in the middle of a transaction, which is why Specialty Sales Representatives wonder if they have a future with Faire in the equation. Amazon is to Specialty retailers what Faire is to Sales Reps. When Amazon came on the scene, they offered free freight, discounted prices, no sales tax and consumer convenience - which made it difficult for specialty retailers to compete. Faire is similar in that it offers free freight with small orders, guaranteed sales and dating, with other promotions that vendors do not offer through their sales reps. This makes it rather challenging for reps to compete with the very vendors they represent. At first blush, Faire seems like it can be a great vehicle for vendors; they are signing up new accounts, driving sales and not having to pay freight. But is it a short term growth opportunity resulting in a long term growth killer? Amazon now represents the largest account to most vendors - but at a significant cost to retailers; Toys R Us, Kay Bee Toys, and 1000’s of Specialty toy stores across the country vanished. Several vendors seem happy with how many new retailers they are signing up, but many questions remain about this type of transactional selling. Are vendors opening accounts near other stores who have a long history of loyalty to your brand? Are you creating a branded section in stores that will draw consumers into a sale or just getting a small, short-term order? Are some of the stores that are buying on Faire also reselling to consumers via a third party like Ebay or Facebook Marketplace? Where is the product going? Because Faire is relatively new to the toy industry, there are no universal standards and practices being used by vendors. In fact, many vendors do not understand how to work within Faire while including their sales rep. Many retailers that we have spoken to want to order on Faire while also ensuring their rep is included in the process. This is not possible without the support of the vendor.
16 tfe June 2024
We acknowledge that there are vendors and retailers that have never used outside sales reps, but there are many compelling reasons why a rep is a valuable asset to vendors and retailers for their long term growth. If you ask retailers and vendors that rely on their reps, they will tell you how important their rep is to their business. The most valuable commodity to all of us is time, and being efficient can help you save money. Using your local sales rep as if they are an additional employee, will help you save time by having them deal with all of the multiple issues, from multiple vendors at the same time. Most rep groups have invested in ordering portals to help retailers place orders when it is most convenient for them. If you think about it, a rep also knows the best sellers for a specific region. This, along with understanding the best quality products and what other competitors are offering, can create a better brand section within a store. The best reps also help those retailers sell through the products once they are placed. Offering to train staff, attend in-store play days, garner free product demos and more, help ensure better consumer experience within those stores. It might cost a little more up front, but there is a value that is being offered which creates additional sales to those retailers. For retailers to compete against big box stores and online sellers, there are now more Astra Certified Play Experts. This means that consumers can come to their local retailer and have a conversation about what is best for their individual child. This cannot be offered at a big box store or through an online purchase. But, more than anything, local reps care about the store’s success – both personally and professionally. These relationships help both the vendors and the retailers grow their business in ways that they are not always easily measured. Buying from Faire is simply a transaction. If you are a vendor and you value your local sales rep, please talk to the sales principals to create a long-term strategy, which will result in loyal reps and the future growth of your brand. The principals have identified ways that you can work with Faire and include your Sales Representative in the equation. There is a solution for all of us to work together to maintain the balance of the three-legged stool for everyone to succeed. Let’s keep the stool standing! As Astra states, we are stronger together!