I had the opportunity this past week to reconnect with some old friends -- suppliers from when I ran the NYIGF (New York International Gift Fair).  It was invigorating to get their perspective on today's industry, as well as their concerns and foresight.  Overall they are optimistic, but with a huge dose of reality.  They recognize that the economy is in a bleak place at the moment, but are weathering the "storm" and moving forward by finding ways to work more closely with retailers.  They are not simply selling them product; they are collaborating with them towards the greater success of their stores.  They feel they can assist the retailer by helping to choose products and by advising how much of the product to buy.  They've also become more flexible on the delivery date of merchandise, which in turn affects invoicing dates.  It is all about partnering with their customer... you.

Spending during the holidays is expected to rise about 2% this year.  Despite it, shoppers are going to be price conscious and looking for good value.  The National Retail Federation President and CEO, Tracy Mullin, said in a Reuters article that "Consumers will be sticking to their budgets and looking for good deals when deciding where to spend this holiday season." http://www.reuters.com/article/domesticNews/idUSTRE49F0YH20081016?pageNumber=1&virtualBrandChannel=0

To compete in our present economy, retailers need to find ways to outdo the rest, whether it is with customer service or having the right product at the right price.  http://retailmerchants.com/event-videos/2008-10-economic-forecast.htm

It is up to the retailer this year to offer customers this competitive value. http://birmingham.bizjournals.com/birmingham/stories/2008/10/13/story5.html?b=1223870400%5e1714107&surround=etf

How you determine that value depends on where you are located, amongst other things, but retailers are advised to carry products that are considered affordable, while still providing a profit margin.  This is where you can partner with your suppliers.  They know what the best sellers are, what products may do better in your particular area, how much you can realistically charge for a product, and which items you can cross merchandise in order to entice multiple sales.  They can even help you brainstorm for promotional ideas surrounding their merchandise.   

You're not alone in this, so take the opportunity to seek out assistance from your suppliers this season.  With their advice and participation, your business will be booming during the holiday shopping rush!