AboutLisa Fortin Jackson Expertise Will answer any questions about retail loss prevention, asset protection (including shoplifting and internal dishonesty), and general shortage reduction; as well as multi-location management as relative to the above.
Experience Seventeen years in the field, including fourteen as a district level loss prevention manager for five national retail organizations.
Expert: Lisa Fortin Jackson Date: 1/15/2008 Subject: obstacles facing a start up
Question Dear Lisa, I ran across your web site this afternoon and
thought you might be able to give me a bit of advice. My wife
and daughters are in love with the Vera Bradley line of
products. Since there is no store in our immediate area selling that line, she as explored the idea of becoming an
authorized retailer. She has made contact with Vera Bradley, but they are indicating they will only deal with an existing store. We have considered putting
a business plan together, seeking financing and leasing space in order to put a physical location in place. We just
are not sure after doing all this Vera Bradley would select
us as an authorized retailer. Our vision is to have them
as our centerpiece with other products to follow. How can
we be assured they would want to deal with us? Without them, we would not want to go forward.
Thanks, Bob Neal
Answer Hi Bob!
Thanks for finding me. I'm not sure I'm the best person to answer your question, since my expertise is primarily in store operations and loss prevention, but I can certainly try to give you some advice based on what I would do if I were in your shoes.
Interestingly enough, I had never even heard of Vera Bradley, so I did a little online research, including looking up some of the stores that carry Vera Bradley in my own (Dallas area) geographical area. There seem to be quite a few... mostly small, privately owned shops that sell a myriad of products from lotions and skin care to luggage and gift items. The only national specialty retailer I found that carries Vera is Crabtree and Evelyn, which is a popular (mall type, I believe) store that carries fragrances, lotions, soaps, and small luxury type items.
I also checked the Vera Bradley website and clicked on the link "Apply to become a retailer". It seemed like a fairly simple checkbox type way to gather info about your business. My guess is that when and if you actually applied, they would want a great deal more additional information-- possibly your annual sales, profit and loss statement, etc. I may be wrong, but that would be my guess. There are also spaces on the "application" that appear to be browser boxes where you can upload photos of your store to their website. They want to see what you are selling, how you are merchandising it, and the overall cleanliness, organization, and product mix in your building.
I don't think it would be enough to just lease the space. They more than likely want to make sure that you already have a viable business in place that would do justice to their product line. Many brands that sell to independent retailers will do just that. I know some people who sell "Nomination" jewelry, which is an Italian brand that markets along the same lines as Vera Bradley. These people had to sign a legal contract stating that they would only sell the merchandise in an existing store, that they would not transport it to sell at trunk shows, exhibitions, etc., that it would not be sold online or on Ebay. Basically, they are making sure that you market the products in a way that fits with THEIR business plan.
Personally, I would not risk opening a store with the intention to make Vera's products the centerpiece. For some reason, this company has chosen to sell through authorized retailers instead of opening their own, exclusive stores. That would tell me that they would want to see what an existing store has to offer, and then possibly expand their product line in your store if sales are good and there is a customer base in you area.
My best advice would be to contact an authorized retailer that is NOT a national store such as Crabtree and Evelyn, and speak to the proprietor regarding how he/she came about acquiring the brand in their store. You can obtain these names from Vera Bradley's website. Just punch in a zipcode from a large metro area such as Plano, Texas (75075), and choose from the list of stores. I would think the owner would not have a problem advising you since you would not be in direct competition with him/her.
Try that first. If you have no luck, I would contact Vera Bradley again with a list of questions. Tell them that you want to open a store featuring her products, and see what they advise you to do. I don't believe that they will offer any assurances, but you never know.
Finally, keep in mind that small, independent retail operations have an extremely high failure rate. This is because you cannot expect to compete with larger retailers who obtain their products at rock bottom wholesale prices because they are buying in such a huge quantity. You can't compete with them on pricing, so you need to ensure that whatever else you sell is unique and not easily available from a large box retailer at a lower price.
I wish you luck, and am curious to hear how it turns out. If you like, you can email me back at this site. I am home tomorrow and can probably make a phone call or two for you-- you have me really curious now.
Thanks for finding me, and if this has been helpful at all, I would appreciate your leaving me some feedback at the AllExperts site.
