317 | The State of Independent Retail with Jen Palacio & Katie Wilson [Part 2]

Today’s episode is part 2 of a two part series on the state of independent retail right now. If you missed last week’s episode, I encourage you to check that one out first.

In that episode, Katie Wilson of Crush & Touch and Jen Palacio of Tiny Turns Paperie shared feedback on their summer 2023 sales season, how they are preparing for 2023 Q3 holiday season, how the current economic climate is affecting business and what’s on the minds of shop keepers right now.

Today we’re continuing the conversation. Katie, Jen and I talk about the importance of clear communication between vendors and shop owners, zip code protection and how these two shop owners are utilizing Faire to place orders with existing wholesale accounts.

Today’s episode is sponsored by our Unlock Buyer Secrets Interview series. To make a strong first impression with wholesale buyers, we need to do a few things really well…

We need to make it easy for stores to purchase from us
We need to have clear pricing and terms & conditions
We need to clearly communicate and add value at each touch point
We need to focus on building strong relationships with our customers.

And all of this becomes infinitely easier when we actively listen to our customers. This on-demand interview series will give you a competitive edge by providing an exclusive window into what buyers want and need from you. And, the best part, its only $27 bucks.

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Staffing in Independent Retail Stores

Both Katie and Jen have been really fortunate to have a strong and reliable staff but this has happened because they have made it a priority.

Katie & Jen both mentioned the importance of maintaining a fully staffed team throughout the year, rather than relying on seasonal hires that just come in during the holidays and then are gone.

They both want to build teams, and have built teams, that are around for the long haul. They have been able to invest in these team members who started out as a part-time but are now full-time or close to full-time employees.

This means sacrifices have to be made. In order to be able to pay team members throughout the year, even when sales are down, or keep the standard number of shifts for each employee, other things have to be put on the back burner.

That includes buying or stocking less product than they would want to so they can ensure they have the cash flow to pay their employees.

Communication and Faire

We talked quite a bit about how important communication is to the relationship between buyers and vendors.

As a manufacturer or wholesaler, it's essential to make it easy for stores to purchase from you. This begins with having transparent pricing and terms and conditions.

Be Upfront About Turn Around Times

In the last episode, Katie Wilson mentioned crazy turn around times for products and sometimes just a failure to communicate the change in turn around times.

Jen talked about how hard brands will work to communicate with her store on the front end. Brands will pitch her constantly to buy their product but then once she does, the communication falls off.

Pitching your brand is really important and something that you should put a lot of time and attention into. However, if you are not following up that purchase with more connection and communication, you are potentially setting yourself up to no longer work with that brand.

“Air on the side of communication. I am a human. I appreciate you. I know how hard you’re working…Just tell me that something happened and it’s pushed back. But if I’m emailing and fully getting ghosted, that will cause me to sever a relationship with the vendor for the future because it’s just so much extra work.”

— Katie Wilson

Honor Buyers Scheduling & Ship Dates

Jen shared her experience and concerns about ship dates and scheduling orders.

She mentioned that it can be challenging for shop owners when all orders process on a Monday. Even if the money is there, banks will sometimes fight over this, causing the transaction to be denied and her being locked out of Faire.

This causes a disruption in her ability to access and place orders with her wholesale accounts, which can be frustrating and problematic for her business. Especially at prime ordering times like Faire Market!

These challenges highlight the need for clear communication and collaboration between vendors and shop owners. By understanding and addressing these difficulties, manufacturers can better support independent retailers and improve the overall buying experience.

Additionally, consistently adding value at every touchpoint and building strong relationships with customers can give you a competitive edge. Understanding and listening to the needs of buyers is key to making a strong first impression and fostering long-term partnerships.

If you are inside of LABS, be sure to check out our swipe file for nurture emails you can send to your buyers after they purchase from you.

Zip Code Protection on Faire

In theory, zip code protection on Faire can be helpful. It works by ensuring that you are not selling to competitors who are also selling in that same zip code.

However, according to Katie Wilson, it is a huge problem for her business. There are several businesses in the couple of blocks around her business that sell similar products, so she doesn’t want to buy products that store is already stocking.

However, six blocks away from her is a completely different world, and she shares vendors with them all the time. Because they share the same zip code, though, Faire blocks her from being able to look at a catalog for someone already selling in that zip code.

Faire will advertise the vendor to her but will not allow her to click on the vendor’s catalog or add anything to her cart.

text overlay: "If you are a vendor and you do not have Faire's Zip Code protection turned off, I cannot even browse your catalog." -Katie Wilson

She said that most vendors don’t even know that it exists because Faire auto applies it. In fact, on their website, they call it an “opt-out feature,” which means you are automatically opted into it.

Katie Wilson believes that it is the vendor’s responsibility to manage those relationships & make sure that you aren’t selling to two stockists who are right by each other.

She recommends reaching out to a buyer and letting them know you sell to someone near them & allow the buyer to decide if they are comfortable with that proximity or not.

Regardless, it is the vendor’s job to make sure that you are not pitching to similar stores that are right by each other.

How to Describe the Current State of Retail

I asked both Katie & Jen to give me one word that describes how they feel about the current state of retail.

The words they used were confusing & temperamental. Both of these words do seem like a great way to describe retail this past year.

However, there is always change happening in business & these challenges allow for independent brands to meet those needs through effective communication, building strong relationships, and listening to the needs of their buyers.

Quick Links

Here is a quick recap of links to other helpful blogs and podcasts shared in this post.

If you have ever wanted to pick my brain, or get my eyes and ears on your business, Proof to Product LABS is the place to do it.

We have monthly group coaching calls and a wide range of On Demand training specifically for product-based business owners. We open up the doors a few times a year so be sure to sign up to learn more!

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MEET JEN & KATIE

Jen Palacio: Jen Palacio is a printmaker, designer and brick & mortar stationery shop owner. She owns Tiny Turns Paperie in Somerville, MA and has a letterpress studio in Charlestown, MA. In addition to the shop and studio, she teaches courses in the Sustainability Program at the Harvard Extension School and Strategy for Creative Business at Massachusetts College of Art.

Katie Wilson: Katie Wilson is an illustrator and shopkeeper living in Los Angeles, California. Her stationery line The Good Twin was founded in 2014, and is known for colorful hand-drawn illustrations and type. In 2018, Katie merged her love of art and cute stuff and opened Crush and Touch Art Supply with her partner Scotte. Katie is always on the hunt for the next great color palette and is usually accompanied by her pug, Stevie.

CONNECT WITH JEN & KATIE

JEN PALACIO: WEBSITE: Tiny Turns Paperie | INSTAGRAM: @tinyturnspaperie

KATIE WILSON: WEBSITE: Crush and Touch Art Supply | INSTAGRAM: @thegoodtwinco | INSTAGRAM: @crushandtouch

Connect with Katie Hunt

Katie Hunt is a business strategist, podcaster, mentor and mama to four. She helps product based businesses build profitable, sustainable companies through her conferences, courses and coaching programs.

Website: prooftoproduct.com | Instagram: @prooftoproduct