Adding local products to your shelves

Local products are items made or grown nearby: a neighborhood bakery's bread, honey from a nearby farm, hot sauce from a local cook, or crafts from an area artist. Adding local products to a small store's shelves can set you apart from chains, build goodwill in the neighborhood, and bring in customers looking for something they can't find elsewhere. It works best when you check the basics first and give each product a fair trial.

Here's the straight truth: local products sell when they're good and well placed, not just because they're local.

Why carry local products?

They make your store different. A chain store carries the same products everywhere. Your store can carry things nobody else nearby has.

They build community ties. Local makers often tell their friends and followers where to buy their products. That can bring new customers through your door.

Customers like them. Many people enjoy supporting neighbors and small producers when the product is good.

They can have good margins, depending on the terms you work out.

How do you find local makers?

Often, they find you. Local makers walk in with samples all the time. But you can also look.

Farmers markets and craft fairs are full of small producers.

Local social media groups and community boards often feature makers.

Ask your regulars. They may know someone who makes something great.

Other small businesses, like cafés, may already carry local goods.

Start with products that fit your store. A convenience store might carry local snacks, sauces, baked goods, or drinks. A beauty supply store might carry local soaps or hair products.

What should you check before stocking?

Do a little homework first. It protects your store and your customers.

Food safety and licensing. Food made for sale usually has to follow local and state rules, which vary. Ask the maker how their product is made and licensed. Rules vary by state, so check your state and local requirements.

Labeling. Products should have clear labels with the name, ingredients where required, maker contact information, and any required allergen information.

Barcodes. If you want the product to scan at your register, it needs a barcode. The maker can get UPC barcodes through GS1 US, the organization that issues company prefixes in the US. Or you can print your own in-store barcode labels for your POS.

Insurance and liability. Ask whether the maker carries product liability insurance. Talk to your own insurance agent about what's covered.

Supply. Can the maker keep up if it sells well? Ask how often they can deliver.

How do you set up terms?

Keep it simple and in writing.

Wholesale purchase. You buy the product outright at a wholesale price and sell it at retail. You own the stock.

Consignment. The maker leaves product with you, and you pay them only for what sells. Less risk for you, but more tracking.

Decide on pricing together, delivery schedule, what happens with unsold or expired items, and how you'll pay.

A one-page agreement with these points avoids misunderstandings later.

The U.S. Small Business Administration has resources on vendor agreements and working with small suppliers.

How do you give local products a fair test?

Give each product a good spot, at least for a trial. A local item hidden on a bottom shelf won't get a fair chance.

A small "local" sign helps customers notice. Keep it simple.

Price it clearly. For price labels, browse the label guns category on NRS Marketplace. For sign supplies, check the office and school supplies category.

Run the trial for a set time, like six to eight weeks. Then look at sales.

Here's a hypothetical. A store adds a local hot sauce near the deli. For eight weeks, it sells a few bottles a week, mostly to deli customers. The owner keeps it and reorders. A local candle, placed near the register, barely sells in the same period. The owner ends that trial politely and thanks the maker.