In the mind of a manager or director, depending on the company and many other factors, there is always the idea of having their own merchandising team. On the other side of the coin, there are other companies that have their own vendors and sometimes think that it might be better to outsource these staff.
If you have not yet decided, consider the aspects described in this article, I think they may help.
Keep in mind that these considerations are very personal and are not intended to give any answer to your particular situation, in order to do so, you would need a lot of information from your business.
Have your own merchandising team:
It gives you a more engaged staff that will better advocate for your products and overall interests in the retail store. This person will be more careful to represent you in front of your retail customers and will be eager to inform you of any incidents or competitor actions to help you maintain and increase your sales.
Your own merchant will make your growth their own (if you know how to manage it) and that right there and then has a direct and powerful impact on your performance, often being the number one trigger for a better and more engaged employee.
Outsourcing your merchandising team:
The next consideration is to outsource your merchants. In fact, this also has many advantages. The first and most important, I would say, is the possibility of avoiding personnel administration and commitments.
Sure, this is a team that won’t feel as committed as yours, but by carefully structuring your contract with your supplier, you can have great results and the assurance of a good job.
To do this, I suggest that you sign a contract based on measurable results that you can supervise and follow yourself. These measurable results should include sales results, display and turnover of products on shelves, communication skills, compliance with work schedules and routes.
You should set up a meeting with your supplier every week or every 5-10 business days, review a results report, meet with dealers, ask questions, get information, competitor information, etc.
When you decide to have your own merchandising team or not, you should also consider:
Where are you operating?
Sometimes, even when you have the best intentions of owning one, you need to outsource it because you’re selling through dealers in another state or country.
Many times these dealers can be hired by the distributor, but sometimes, depending on your contract, you would prefer to deal directly with the marketing team or have your own marketing supervisor. This has many advantages and will be more effective for your interests, especially in competitive markets.
Is your operation too big?
If your operation is too large, you are not going to hire your own merchandising team due to the relative cost involved. I have heard of companies that typically have an average of 3,000 merchants and promoters in various countries and states to work in the retail channel. Such a team is unmanageable and definitely not a good strategy to follow. Now if your operation is, say, $5 million to $30 million a year, I think you can run your own merchants.
I hope this article is helpful and remember to write your comments and questions.
