Orgill Case Study | 15 When a retailer implements one of Orgill’s Smart Start programs, not only does it provide the retailer with a more complete product offering, but by replacing inventory they already have in an existing assortment with product from Orgill’s vendor partners, the retailer can offset the costs of implementing the Smart Start through vendor buybacks. These vendor buybacks are typically dollar-for-dollar on the wholesale value of the products being replaced, Barker explains. “These buybacks are incredibly important to helping the retailers upgrade their assortments, and we want to emphasize the importance of taking advantage of every buyback opportunity that a retailer has available to them,” he says. The buybacks are issued in the form of credits once the inventory of legacy product is verified, the legacy product is lifted from the store and the new Smart Start assortments are implemented. To ensure that a retailer receives all of their buyback allowances before they ever have to pay for any of the new products replacing lifted merchandise, Smart Start assortments offer 90-day dating. “We provide this dating to make sure that the manufacturers participating in our Smart Start programs have the time to process the buybacks and issue credits,” Barker explains. Because the final buyback allowances are based on the wholesale value of the legacy items being lifted from a retailer’s assortment, once a retailer agrees on the Smart Start they want to implement, a physical audit of the existing product is performed. This can be done by the retailer’s team, or Orgill’s conversion team can perform the inventory audit for the customer. “Whether they do it or we do it, we want to make it as easy as possible on the customer,” Barker says. “Some retailers prefer to do their own inventory and some prefer to avoid the man hours and have us do it.” Along with the buyback credits, Orgill’s Smart Start vendors also provide a labor allowance for implementing the lift of legacy products and setting the new assortments. This labor allowance makes it even easier for the retailer to enhance their operation without having to dedicate their own labor dollars to the project. A Helping Hand Before After
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