Non-Store Retail Channels

Local farmers markets, kiosks, or other free-standing spaces at indoor or outdoor malls are examples of non-store retail options. They offer a low-cost retail method for starting a business or test marketing a product. The rental fees pay for space, cooperative mall marketing fees, and insurance as indicated in the chart below.

Local farmer's markets offer more reasonable rates. The Ithaca, New York Farmers Market (www.ithacamarket.com) charges an application fee of $100 plus daily stall fees ranging from $10-23 for a full stall and $6-14 for a half stall.

Cooperatives that operate retail stores are also a good option for new businesses. Cooperatives usually jury the products before offering membership. Members are often required to work at the store, sharing the selling, stocking, and record-keeping responsibilities of a retail store operation. Consider the other products in a cooperative before joining. You want to be sure the products have

• the same image and level of artistry and quality,
• non-competing products, and
• similar potential customers.

"[Trunk shows] are good just to get your stuff out there...Usually when I do the trunk shows, I'll price things more in between wholesale and retail" Carol Young uses trunk shows in addition to selling her work in small retail stores and design cooperatives. Some trunk shows are held at homes and spaces that set the ambiance for her creative clothing and bags through views and music.

Catalog and Internet sales are also non-store retail options. These require other sets of skills. You will need to clearly define your target market and develop marketing strategies to be sure you reach your customers.

Catalog sales require developing a mailing list. You can start by asking each customer for contact information. Many companies sell their mailing lists. You can identify catalogs that offer competing products and have the right image for your product and buy their mailing lists. A number of companies, such as Direct Market Group (www.dmgroup.com) offer help in buying the right mailing list for your product. The Direct Marketing Association is a trade organization for direct marketing businesses (www.the-dma.org). A variety of resources for direct marketing are provided to members.

Crucial to your success will be developing your catalog with

• an image appropriate for your product
• visual images and text that will replace the need for customers to touch and try-on
• the right frequency and number of issues
• a number and breadth of products, and
• easy purchasing process with good customer service.

This chart lists start-up costs for catalog and web-based businesses in 2003.

Successful Internet sales require many of the same strategies as catalogs. The Internet helps independent designers and manufacturers alike to by-pass traditional retailers and sell directly to the consumer. Although developing a web site takes time and money, it can be cheaper than a retail store. A cooperative web site such as www.fabric8.com that sells clothing by several young San Francisco designers spreads the cost of constructing a web site across several businesses.

"It's difficult [on the Internet] when we sell the level of quality that we do.." Diane Brush compares Garnet Hill's use of catalogs and the Internet. She explores the advantages and challenges of print and online sales.

Web sites offer personalized services in a fun and stress-free environment at a convenient time--ANY time. Many web sites ask their customers to "register." When they return, the web site uses a customer's previous shopping trips to highlight products they might like. Repeat customers can be directed immediately to the merchandise in which they have been interested in the past, saving them time and hassle.

You can structure your web site so that search engines such as Google and Yahoo will list your business first or toward the top of the list. This is done by using particular search words and phrases that most web designers know. You can purchase advertising from search engines and other web sites where you think potential customers visit.

You can also become a member of a retail exchange that sells products for a variety of businesses. Amazon.com, bluefly.com, and eBay.com are examples of exchanges. For a price, they provide the web infrastructure to sell products from a number of businesses. Your product would be listed and promoted when a customer asks for your product type, such as swimsuits. The advantage of exchanges is that you do not have to design, pay for, and implement your own web site in order to attract customers.