From the Entrepreneur’s Perspective: How is a buyer’s performance measured; and why should I care?

Buyers are measured based on numerous financials, including:

  1. Top line sales. Just like you, the buyer wants their top line (gross sales) to be as high as possible. As such, the more you sell, the better for you and the retailer. So, support your item with promotions and marketing/PR as much as you can.
  2. Bottom line margins. Just like you, the buyer wants their bottom line (net) to be as high as possible. Providing them with the best possible wholesale cost allows them to maximize their penny profit.
  3. Store traffic/incremental sales. If you drive a customer to their store to purchase your product, that same customer is also going to likely fill their basket with other items. Tag your retailer in ads/press whenever you can (and let your buyer know you are doing so. It shows your commitment).


Why you should care:

  1. You want the buyer to be happy and employed. When buyers change, you have to start building your relationship from scratch which takes time and energy.
  2. You want your product on shelf. If you are making healthy contributions to the buyer’s bottom and top line margins and driving store traffic and incremental sales, your product stands a far greater chance of staying on shelf – right where you want it.

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