Throughout your journey you will come a cross lots of expressions, abbreviations and words that might be unfamiliar at first. To help demystify them I've decided to compile a list below, I will be adding to this as and when as needed.
Recommended Retail Price - RRP - the price you as the seller recommends that your product will be sold at, remember, this is just a recommendation and you can not decide what the retailer should retail your product at.
Terms and Condition - T&C's - usually this refers to your payment terms, industry standard for the home & gift industry is 30 day's net but some larger retailers demand longer payment terms.
Payment terms - usually 30 days net for UK orders.
End of Month - EOM - also a payment term, for example 30 days EOM would mean that you get paid in the end of the month after 30 days, if you invoiced a company on the 15th of November the invoice would fall due on the 31st December.
Settlement discount - some larger retailers demand that they get a 5-10% settlement discount when they pay their invoice on time, this is really tricky for small businesses and it's something you need to know before quoting a larger retailer but they often forget to mention this. Get around it by asking for their T&C's, delivery and labelling requirements before quoting them anything as it's difficult to change the price further into the negotiations.
Proforma - payment to be received before the goods are shipped, normally your first order to a new stockist will be on proforma and I would recommend that all international orders are on proforma.
Carriage paid - a set amount where if reached you will offer free carriage, this is often higher than the minimum order amount. I would recommend that you do offer a carriage paid amount as pretty much every buyer I know hates to pay for carriage.
Minimum order - the minimum a buyer would have to order for you to pick, pack and send their order.
Pack size - the minimum a buyer needs to buy of one particular product.
Minimum order Quantity - MOQ - generally used mostly by larger retailers, essentially it's the same as the minimum order but usually refer to one product.
Buyer’s Pack - would include your catalogue, order form or price list and terms and conditions.
Line Sheet – no frills version of your wholesale catalogue, prices, terms and conditions, pack sizes etc. Can also be called your order form or your price list.
Sales agent - a commission based sales representative for a certain geographical area. Usually represent several brands and sell to independent shops, garden centres, museums and department stores.
Point of Sale - POS - this is usually something that will help sell your products, often it's a sign with the story of your brand or a display unit for your products.
Counter Display Unit - CDU - A display stand for your products, usually holds a number of products and sits on a counter.
Floor Standing Display Unit - FSD Unit - A taller display stand for your products that sits on the shop floor.
Stock Keeping Unit - SKU - refers to a product, larger companies assign each item a sku number/code for their stock management system.
ISBN/EAN - The most commonly used barcode system. If you're going to be selling to shops it's advisable that you assign each product it's own unique barcode as even smaller shops have a stock management system now days. You will need to bulk buy your barcode numbers.
POS system - Point of Sale system, (not the same as the POS above), usually the till and stock management system all in one now days.
Quantity - QTY
Lead Time - LT - The time it will take you to send and deliver an order.
Cost price - CP - the cost to the retailer.
Spring/Summer - SS - usually followed by the year, for example SS19 = Spring/Summer 2019.
Autumn/Winter - AW.
Quarter 4 - Q4 - The last quarter of the year, you might also hear Q1, Q2, Q3 etc.
Golden Quarter - Again refers to the last quarter of the year, this is usually when the shops are the most busy and take the most amount of revenue.
If I missed any please get in touch and I'll add them in.
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