A retail buyer is someone who purchases inventory to re-sell to the public. There are many factors buyers must consider for the utmost success: demands of the customer, current trends, budgets, and more. The buying process occurs in both full-price and off-price businesses, however both buyers have very different jobs.
By the time you finish reading this blog, you will understand who a retail buyer is and how a full-price buyer differentiates from an off-price buyer.
What do they buy?
Full-price buyers buy what's available. They can pick specific styles, quantities, and have a selection of items to choose from.
Off-price buyers buy what's left over. They pick and choose from a remaining assortment.
When do they buy?
Full-price buyers buy 6-9 months in advance of the product being on the shelf.
Off-price buyers buy 1-3 months in advance.
What are their markdown strategies?
Full-price buyers cut gross margin deals with brands at the end of the season.
Off-price buyers typically negotiate the discount up front and rarely receive markdowns from brands.
What are the differences in negotiation?
Full-price buyers negotiate for better payment terms, advertising money, and gross margin deals.
Off-price buyers negotiate on the discounted prices.
What are the challenges that the buyers face?
Full-price buyers need to be aware of the current trends and understand their consumers.
Off-price buyers need to be aware and sensitive to how their items are priced.
Can full-price buyers also be off-price buyers? And vice versa?
It's easier for a full-price buyer to transition to an off-price buyer; a full-price buyer gets better with training!