Knowledge Center

Thursday, June 18, 2015

HMB's Aaron Werner Speaks to Luggage and Related Industries Association on Negotiating Vendor Agreements with Big Box Retailers

2015 Summer Credit Conference

Monday, June 22, 2015

 

Selling to big box retailers (Walmart, Target, Amazon, CVS, and others) is desirable because it can lead to a significant increase in sales volume and revenue growth which enhances the value of a company. However, signing a vendor agreement with a big box retailer can lead to problems if the seller is not equipped to properly negotiate the vendor agreement, manage the ongoing relationship, and/or is not prepared to follow the very specific requirements of the vendor agreement when filling orders.

In his presentation, Aaron Werner, partner in Horwood Marcus & Berk's Business and Finance Group, will discuss how a seller should have a clear strategy when negotiating and entering into a vendor agreement with a big box retailer. That strategy should include:

  • Assessing your leverage versus the big box buyer's purchasing power;
  • Understanding the risks contained in the vendor agreement;
  • Grasping key provisions and their meaning;
  • Knowing what provisions may be negotiable;
  • Negotiating down the open-ended risk that is standard in a form vendor agreement; and  
  • Recognizing and preparing for order fulfillment requirements.

National Luggage & Related Products Industry Credit Group

Any business of subsidiaries thereof engaged in the manufacturing, supply or distribution of luggage, travel and related products on a nationwide basis shall be eligible to become a member of the group. In addition, factoring companies within the Travel goods industry are welcome.

Companies must be a member in good standing of any NACM affiliate. Company participants must be credit professionals and agree to abide by the rules outlined in the Industry Credit Group Bylaws.

For more information, visit  the National Association of Credit Management South Central website.

 

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