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magazine | Mar 1, 2022 |
Stocking dealers get better pricing on product. Here’s how you become one

There’s a big payoff when designers become stocking dealers—but what does it take to get there? Here’s a step-by-step guide to getting it right.

The discounted pricing trade brands offer designers allows them a better margin on the products they place in their projects. But many companies also offer an even deeper discount—one that comes with more strings, but that can radically transform a firm’s bottom line.

Becoming a stocking dealer generally goes like this: In exchange for purchasing a certain minimum annual order from a vendor and, in most cases, displaying that product in a retail space, a designer will receive a deeper discount than the brand’s typical trade markdown. If there’s one thing to know about stocking dealer relationships, however, it’s that each situation is unique. When it comes to business terms, brick-and-mortar requirements and benefits, each stocking dealer seems to find their own approach. The process is rife with variation on the vendor side, too, forcing designers to map out unique paths to a fruitful partnership. What does it take to land, maintain and maximize the stocking dealer relationship? We set out to uncover the journey to profitability using this pricing model.

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