MONEY SHOP
Manufacture and supplier instock helps the retailer as this minimises the risk.
Footwear Today’s financial plumber, footwear retailer David Gummers, talks about sale and return and bank charges.
W
hy should we as retailers have to increase our forward purchase, just in case the supplier has run out of stock? Whereas I do not expect them to have every style in every size, but in two recent examples from
companies that used to be much better, I got a mere 25% of those I ordered. This, particularly, from a company which prides itself on being an instock supplier, really is not good enough. My father always thought that forward ordering was a necessary evil, as
tying money up in stock is not wise for the retailer. Is it too much to expect suppliers to carry core lines in middle sizes in stock until the end of May? Reps and agents should be jumping up and down as it is costing them shed loads of commission. From a negative to a positive, I had a visit from a supplier that came with an appointment, but well aware he may walk away with no order. This is the best buying meeting I have had for years. He was on time always a good start. The agreement we came to was the best sale or return deal I have ever had. Buy 4 lines of 10 pairs and we will give you six months, i.e. a season to sell 80% of each line or we will take them back and refund you or if it is the wrong style replace it with something you can sell (name of supplier available on request!) They do ask us to pay for the shoes, which bearing in mind they offer
generous settlement terms and an extra discount for buying 40 pairs, I cannot quibble. This was a breath of fresh air, what an excellent way to get a brand into a shop. To cap it all they gave us some lovely biscuits which did not last long. If only all our shoes sold out as quickly. Before I close, a word about bank charges, as a letter dropped on my door mat this month from my current bank and gave me quite a shock. Until now I thought we were on quite good deal. A fixed fee that was under £200 per year. The letter said they wanted to ‘simplify and harmonise their charges’ - in other words, significantly increase their charges - as they think is ‘unfair to have different charges for each customer’. My reaction to that is unprintable in a family magazine. What I will say is that all business owners are capable of negotiating their own deals, so if one person can do a better deal, why should they be penalised for another’s inertia. They had proposed to put my charges up by about 30%. The letter did set me thinking, am I really on the best tariff for my
business banking? I will not mention banks here as they are not really able to defend themselves. It transpires I can actually pay less than £100 a year. So I have to admit I have been throwing money away, which really grieves me! When this deal was negotiated we were getting service from the bank and
they were doing something for their money. Now, I do just about everything myself enter the payments online, print out my statement once a week to reconcile the bank. If I was being flippant, but with a serious side. The bank should be paying media should be able to charge them a couple of hundred pounds a year just for printing ink. I will now have to find a convenient date to move my banking-it is incredible that one high street bank can offer a service at a third of the cost
30 • FOOTWEAR TODAY • AUGUST 2014
of another. You are more likely to get divorced than move banks. I have moved my personal banking several times to get the best deal, but it had not really occurred to me that my bank has been overcharging me on my business account! Finally, an update on the charity concert referred to in last month’s
Money Shop. From both a financial and music point of view, it was a great success. We raised £3,500 for the Baphumelele Orphanage, with a shoe auction still to come. We have already given all the children at Baphumelele a new pair of shoes and we’re buying them clothes with the rest of the money. The fee for the venue and the event insurance has also been paid and the cost of the programmes was recouped on the sale. I would like to thank everyone who contributed to this incredible event.
The music was excellent - if you go on You Tube and type in: Hansk Kuzanga Natalie concert, you can listen to the music. The biggest coup though was the attendance of Helen Zille, the Premier of the Western Cape, a cross between Boris Johnson and David Cameron, more powerful than Boris!
P.S. Ed says: If you are a supplier offering sale and return,
Footwear Today’s Independent Retailer’s Panel would like to hear from you. Contact:
cheryltayloreditor@googlemail.com
If you would like David to look at your business costs, he promises that if he cannot save you any money you pay him nothing. But for every pound he saves you pay him, 15 pence. If you want to learn more email David on david@fdickinsonfootwear
Website: http://www.fdickinsonfootwear
.co.uk or call 01229 580654
.co.uk/
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