How do I find out whether a party supply store depends on a few event planners?
Ask for sales broken down by customer for the past few years, then see how much comes from the biggest event planners. Talk to the owner about who those accounts are, how orders arrive, and whether any of them buy from other shops too.
Begin with the numbers. Ask for the shop’s invoices grouped by customer, not just the daily till totals. Event planners often order in bulk, on account, and for large occasions, so a few names can sit behind a big slice of the busy season. Compare that group with walk-in sales and small online orders to see the balance.
Next, learn how those relationships work. Ask who handles them, how the planner first came to the shop, and whether there is any written pricing or only a handshake. If the owner is the only contact, the relationship may not follow the shop to a new owner. Ask how often planners place rush orders, since those can strain staff and stock.
Check how the planners behave. Do they pay on time, ask for discounts, or order from rival suppliers when your shop is out of an item? Ask whether any have cut back lately. Finally, with permission, a short call or an introduction to the biggest accounts can show whether they plan to stay. Your accountant can help you read the invoice data.
Key takeaways
- Request sales by customer, not just totals, and look at how concentrated the top accounts are.
- Find out who holds each planner relationship and whether it survives an ownership change.
- Ask how planners pay, how often they rush orders, and whether they shop elsewhere.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
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