You may recognize this scenario: you want to carry some garden items in your shop for the summer season, but you can’t rationalize placing a minimum order of $250 to $500 with each supplier you want to buy from.  Here is a solution you may want to consider: a stocking distributor.

Stocking distributors are consolidators who carry merchandise from several different companies (as well as some items of their own, probably direct imports), with a certain focus such as hardware, garden items, New Age products or housewares.  They offer retailers the opportunity to place one order with a single freight charge for all the products they carry.  And if the stocking distributor is located in your part of the country, the freight cost may be quite reasonable.

How does this work?  Chris Gelalich is a sales representative for Down to Earth Distributors of Eugene, Oregon. He explains that a stocking distributor like Down to Earth will buy from a variety of vendors, usually at slightly less than standard wholesale, and then add some markup to those prices.  They will also carry merchandise that they import themselves.   By offering a consolidated order shipped from one central location, the savings in freight often compensates for any prices that are slightly higher than they would be otherwise. The Down to Earth web site, in fact, features truck routes, a truck calendar and a truck freight program — so savings on shipping costs on heavy items is clearly a major attraction.

Down to Earth offers both housewares and garden items, and in addition to their regular line they offer closeouts.  Even if the idea of ordering regular merchandise through a distributor doesn’t appeal to you, you might consider a closeout consolidator. Products brought in at sharply reduced prices are great for customer giveaways, augmenting clearance sale merchandise, and selling at regular price with an increase in your margin. But you need to make sure that these products are of the same quality as other merchandise in your store.

There are not that many stocking distributors in the gift and home accessory field — and at a trade show, it’s hard to distinguish displays from these companies from multi-line booths.  But if you find one in your area that fits your needs, it could be a great way to add variety to your merchandise mix while maintaining a healthy bottom line.

Happy Retailing,

Carol “Orange” Schroeder