Working with To-the-Trade Vendors

FREEBIE INCLUDED!

So many designers (myself included) work for years sourcing retail-only products for their clients. Usually, this is because it’s easy and familiar and many retailers offer “trade” programs offering 10-20% off.
There is nothing wrong with sourcing retail, but doing it exclusively means you’re leaving money on the table. Potentially, a LOT of money. So let’s pull back the curtain on working with to-the-trade vendors so you can start to leverage your buying power as an interior designer.

Let’s look at an example:

This lounge chair is available through several retailers.

It retails for $849. If you were to purchase it through the retailer and get trade pricing, you might get 20% off earning a revenue of $170 per chair. Not too bad.

However, if you ordered this same chair directly from the vendor/trade account, you could pay $565, earning a margin of $284 per chair. Much better! Now extrapolate that over an entire room or home’s worth of furnishings, and you stand to earn a significant amount of revenue from to-the-trade sources.

Next, let’s start with 4 myths about working with To-the-Trade Vendors.

Myth #1 - To-the-trade vendors are only for very high-end products

There are many Trade Vendors who offer products across price points. In fact, many of the retailers you are likely familiar with, offer products that aren’t exclusively theirs. Meaning, you can access those same products for 40-60% off retail, vs your standard 10-20%.

Myth #2 - To-the-trade vendors require credit checks

Not true unless you are requesting to purchase on credit. Instead, you would simply open trade accounts as a “pro forma” account. Meaning, you would pay upfront for products (that your client has already paid you for). This is an option you would select when completing your form to open an account.

Myth #3 - To-the-Trade vendors have high minimum orders

It’s true that some vendors require a minimum opening order, but not always, and minimum opening orders aren’t always out of reach. The minimums can usually be achieved with one project. This is always a question we ask about when opening trade accounts and we make a note of it in our spreadsheet of trade vendors.

Myth #4 - To-the-Trade Vendors require shipping to a receiving warehouse.

Sometimes, but usually, this only applies to furniture. More and more trade vendors are making it possible to ship directly to a residence. Of course, I’m a big advocate for using a receiver, but if that doesn’t make sense for you or your project, just know that many vendors make this possible. Consider having just the large items sent to a warehouse if that is a better solution.

If a warehouse receiver really isn’t in the cards, consider a 3rd party freight delivery service like what FedEx offers. (I have never personally used this service, but I know it’s an option for some designers, especially those working in remote locations. Contact them directly for more information.)

Learn more about the benefits of working with a Receiving Warehouse.

Opening To-the-Trade Accounts

My best advice is to not try and open every possible trade account under the sun. Narrow in on 2-4 vendors per category (i.e. upholstery, lighting, rugs, ready-made, etc.) . Do some research and start building a list (see below) of ideal vendors.

Some manufacturers allow you to open a trade account directly with them, while others will have you work with a local representative. Start with the manufacturer’s website for information on how to open a trade account.

To open a trade account, you will need a resale license from your state. Every state has different requirements for obtaining a resale license, but usually, it’s a Federal EIN number and a business bank account. Check your state’s requirements for details.

Besides your resale license, you will be asked for standard business information.

Some applications will ask you how you want to pay: "With terms” (on credit) or “Pro-forma" (pre-pay) using a credit card, check, or bank transfer. Some applications will ask you for Trade references. You don’t usually need to supply this information if you are opening a Pro Forma account.

Keeping To-the-Trade Accounts Organized

Once you submit your application and documents (i.e. resale license, business card) you will usually be approved within a few days. Upon acceptance, here are a few questions I always ask my representative. I keep these details documented in a spreadsheet for future reference.

Finding Trade Sources

Identifying trade sources may seem like a challenge at first, but once you know what to look for, you may find yourself flooded with resources.

Look for manufacturer’s names - Some online furniture retail websites will list who the manufacturer is. Skip the 3rd party retailer and go straight to the vendor.
Visit your local design center - Most major cities have some kind of central design center with many showrooms as a resource. Call a few of the showrooms ahead of time and ask if you need an appointment. If not, still let them know when you’ll be coming. Create a one-page printable you can take that includes all your business information (Business Name, Contact info, Website, Social media, address, etc.) PLUS a scanned copy of your resale license.

When you show up, have this ready with your business card and let them know that you are visiting to get acquainted with the showrooms and vendors. Most showroom representatives will be excited to meet you. They are more than happy to give you a rundown of their lines, how to open an account with them, and how pricing/quotes/ordering works. Don’t be shy!
Go to a Trade Show - This is Mecca for designers. There are many trade shows around, but the big two are Vegas Market and Highpoint. They host 2 shows annually where manufacturers come and show off their new products - everything from furnishings to appliances to finishes. Admittedly it can be a bit overwhelming, but you will get exposure to 100’s if not 1000’s of vendors you can use as a resource.
Check out Trade Publications - Subscribe to industry publications like “Designer’s Today” (free) for access to industry news and ads from designer-friendly trade sources. I’m constantly finding new vendors to check out!

If you aren’t yet leveraging to-the-trade sources, I hope this serves as the gentle nudge you need to make this a strategic part of your business plan.

Want a little help getting started?

Download the Trade Account Action Plan & Resource Guide Today and get:

✅ Step-by-step guide to getting started with Trade Vendors
🔑Quick Start Vendor List - 12 Favorite Designer-Friendly Trade Sources
🖥 Trade Accounts Directory - Spreadsheet Template for organizing your trade accounts