Brands, Agents, Distributors: Samples pre and post agreement.

Firstly, sending Samples pre any agreement between brand and agent/ distributor:?

As you may know, in short, I work for brands to get them agents and distributors in their domestic and new markets. One thing that is often asked by the agent is “Can you send some samples”. A natural response when in first discussions with the agent or distributor. Perfectly normal. They want to see the quality etc. Brands are also quick to offer samples sometimes in desperation sometimes just being accommodating.

However when brands work with me and we are talking to potentially 10 agents and distributors or more all over the world this is becoming seriously costly with freight added. I have also witnessed?agents/ distributors asking for samples too with no intention of taking negotiations further, thankfully very rare.

I thought about it a bit more using my past & present experience and a bit of future. Willy nilly sample sending can’t continue unless there is a very good reason to.?

So my first suggestion is the agents and distributors stop asking for samples immediately and brands stop offering impulsively and pause and think. For example, does this brand sell online??(that is going to be 95%?YES). 100,000,000’s of people are buying stuff online without getting a sample first so do agents really need a sample at this stage? I think in most cases not.

In essence samples are requested or offered largely out of habit, it’s always been like that. But please with buyers placing orders though the many Joor, Nu-Order with no sample, and agents actually selling online/ Zoom etc.?not expecting?to give their customer a free sample let’s start to break this habit at the negotiation stage for sure.

Brands are?keen to talk to the agent, the brand is at fault to not question when asked for samples, so that too must end. Be clear, “we do not send samples without good reason, why do you need them exactly?”. If the agent says “then I am not interested” take his/ her word for it, he/ she aint interested! Not without good reason.?

?Next time the phrase?“Can you send a sample” arises for an agent. Take a step back look at the brands website and if you really need a sample at least offer to pay wholesale less 30% for it then the brand still pays the freight. It is a gesture and shows good intent and that your enquiry is serious. I realize a good?agent is checking its quality on behalf of customers but let’s start to stop and think going forward.??

1. If it were a Versace diffusion and the brand said “no samples till we sign” most agents would not push.

2. Let’s face it with most brands you can see reviews/ quality online. Most agents/ distributors pre check a brands RRP’s etc. before even speaking,?so start to consider the quality research too.

3. Think of the planet, do you really need a parcel before signing/ making a decision to sign with the brand which these days is likely to be sustainable.?

Once a brand and agent/ distributor have agreed to work together the agent gets the full collection and of course if it is rubbish, rare but happens they send back/ get collected.?

Fashion Compass Suggested approach for Commercial and Premium Brands Sample Accountability after agreeing to start with an agent/ distributor:

The whole aspect of?sample costs is generally recognised by both brands and agents as an inconvenience. All brands differ so this is a guideline to adapt to your brand. The aim is: Minimise costs and losses, no-one profits/ loses. Fairness to both brand and agent. Include accountability, responsibility & matter of principle.?It is best made clear as early as possible.

Brands policy on samples to Agents and distributors:

Like any business “BRAND” has to be accountable for all stock including our losses on sample collections.

All samples will be invoiced at 45%* of the quoted Wholesale price on the linesheet you receive. E.G. A ￡/ $/ € 50.00 at wholesale will be invoiced to the agent/ distributor at ￡/ $/€ 27.50.?

The samples are on a “sale or return” basis. If any samples are to be used for marketing purpose, please inform us prior for approval along with style nr/ qty for credit note information.

When the agent/ distributor no longer needs samples, they may sell the samples locally.

Alternatively, when the samples need collecting please notify us by email which samples, and quantity so we can arrange collection.

Any outstanding amounts on the invoice will be agreed bi-annually and settled.?

* 45%. This % will depend on your cost to wholesale margin, we suggest % that shows you are near your “landed” cost price.?

Thank You for reading, feedback welcome.?I hope this helps.

Stephen Laundy Click here for website: Fashion Compass