Someone lamented recently they’d lost a unique opportunity at a wholesale show because they thought someone was a personal shopper. How could she tell real opportunities from not-so-hot ones?
A technique I've found helpful is to qualify all buyers and reserve judgment/decisions until I have the total picture.
How do I qualify buyers? You’ve heard it here before:
ASK QUESTIONS.
In fact, ask a MILLION questions. Make sure you ask nicely, but don't worry--most buyers (especially bona fide buyers) love to talk about their businesses.
Without making a snap decision, I go right into information-gathering mode.
The point is not to say “no” when you hear a wrong answer, but to get enough answers so you have a better idea whether this customer meets your qualifications as a buyer, or presents themselves as an unusual but desirable opportunity, a tire-kicker or a run-don’t walk away situation.
Also understand that your idea of a qualified buyer may not meet someone else’s. It’s totally up to you who you decide to do business with. For example, some people welcome sales to personal shoppers at wholesale shows, other artists run screaming. It depends on what your needs are, what your business model is, and what opportunity that shopper presents. If they came to the show looking for a good deal, that’s a different opportunity than a rep for a catalog company. Not necessarily better—just different.
I don’t have a set of specific questions, I just follow my gut. I start with something generic like, “What is your store (or business) like?” Ask what its style or atmosphere is. Ask how big it is. Size doesn’t matter too much, but you want to get a feel for how much space they have to use, and how much wall space is available if you sell wall art.
Ask where they are located—in a newly renovated city neighborhood, out in the boondocks, on a street with no parking? Iffy locations aren’t necessarily a deal-breaker if they’ve managed it well or built a loyal following. Again, you aren’t passing judgment (yet) or saying yes or no, just gathering information.
You can follow up with questions like these:
Who are your customers? What are your best price points for them? Gifts under $25? Collectors starting at $150 and up? (If their highest price point is $25 retail, and your work starts at $200, you want to know this.)
What products do you do well with? (A buyer for a store that carries home furnishings, who loves your jewelry, may not be able to do much for you.) What are you looking for today? Items for summer tourists? Gifts for grads? Teens? Retirees? Buyers look to fill "holes" in their inventory, and you might be able to target these. But it also alerts you whether they have seriously thought about what they offer to their community.
Is your business year ‘round? Seasonal? Is your customer base mostly local, mostly tourist, or a blend of both?
Who are other artists you carry? Who do you do well with?
How long have you been in business? This is your first year in business? How far out is your financing? That is, how long did you give yourself to make a profit? Hint: If the answer is less than three years, proceed cautiously. Five years is better. It takes TIME to grow a business. Again, this is not a deal-breaker by any means--everyone starts SOMEWHERE--but counting on a thriving business within six months may reveal a bit of naivete or wishful thinking on their part. They may only last long enough to place one order, and be out of business by next year. (Another hint: Think before offering net 30 right out of the gate!)
If the arrangement is an unusual one (co-op gallery, new on-line venture) ask exactly where they make their money—on what artists spend to participate, or on actual sales, etc. What percentage do they pay their artists if it’s not a traditional wholesale situation?
This technique works well with a LOT of unknown situations, even if the buyer sounds like a big player. A few questions may reveal the "big opportunity" is really a rather small new gallery the person is thinking about opening up next year. (I got several of these "buyers" at the last BMAC.) Or conversely, you may find the quiet, unassuming person is a buyer for a top museum store.
Even if they start with a request to buy one item, you can respond with, 'I usually require a minimum order for opening accounts, but tell me what you have in mind."
Even if the answer is they think their niece would like it, you can still ask more questions--because maybe their niece is the main buyer for a prestigious museum or gallery.
Continue to gather as much information as possible. If you still aren't sure, stay enthusiastic but ask if you can follow up after the show. Your excuse could be, "I have some extra materials I think you'd find useful, let me gather that up for you once I get back in my studio" or whatever would buy you a little more time. This, too, can keep you from shutting the door on what COULD be a good opportunity.
Even if, after you gather all the facts, you decide it's something you're not interested in, it never hurts to be enthusiastic enough to leave the door open. Today's minimum order buyer or "new gallery next year" could be a great new account for you down the road.
We all miss opportunities. It's not about never making mistakes, it's about finding ways to do better NEXT TIME.
