Approaching Large Retailers

[qwerty123]

Hello,

I am currently developing a product . I am thinking into the future a little bit , but i am wondering really what the best way is to approach big retailers with my product. For example companies like www.Ebuyer.com who are a very strong competitor in the target market of my product. Can anyone give me some advice on how to approach these companies ? Bearing in mind you only get one chance with a product

Thanks a lot !

 

[DeveloperBloke]

im going throguh the same process at the moment, allbeit in a very different market.

one thing i have found, is that you just go and do it. They get approached all the time with products, so they are very use to people approaching them.

simpy call them or emil and ask them their process. ask to speak to their buyers. Most importantly, have faith, do your home work, and ensure you go there and sell them your product.

If your product is good, they will want to buy it. remember, that they want to make money, so they will probably want your product more than you want them to have it. (if it is good)

Ensure that you go there with a highest and lowest price that you expect to achieve, and if you are clever, go in a little higher, then negotiate numbers for a cheaper unit price.

Good luck

Jamie

 

[www.sitepal.co.uk]

Hello,

I am currently developing a product . I am thinking into the future a little bit , but i am wondering really what the best way is to approach big retailers with my product. For example companies like www.Ebuyer.com who are a very strong competitor in the target market of my product. Can anyone give me some advice on how to approach these companies ? Bearing in mind you only get one chance with a product

Thanks a lot !

Dont be surprised if they dont give u their time

U may find its better to go it alone

 

[Graham Iceberg]

Hi Qwerty,

Can you shed anymore light on your product, without saying too much - it really would help to have a clue what you are talking about.

If the product is good - and you go through a larger broker / retailer / competitor to get it into the market, i would say you'll be ripped off and hijacked. The bigger, well protected companies love their work being done for them ! I am afraid this is business and you'll come out a loser.

If the product is good - can you get it moving by yourself ? If so, it's great news for you. It may be worth thinking about this.

I would say be super-careful, and do not trust anyone. Also, explore how you intend to market this. Can you enter overseas markets first, which may protect you somewhat.

Graham

 

[TechFox]

I would reccomend setting up a web site and selling the product yourself.

 

[lesliedocherty]

HI,

I agree, we distribute for an american company, getting to speak to the right person is crucial, getting an appointment is hard, we have been banging on doors with some results.

You need to identify where the product will sit best, is the product right for the targeted retailer, then go get them.

leslie

 

[SuffolkDesigns]

Dont be surprised if they dont give u their time

U may find its better to go it alone

I would reccomend setting up a web site and selling the product yourself.

I find this attitude very negative, and the advice totally worthless without knowing the product.

It is possible to sell to large companies, although very difficult, however it can be well worth the effort due to the numbers that can be sold. The main thing is to get in contact with the right person, arrange a short but well presented meeting so as not to waste their time. I would go in with the objective of a) getting them to like and want the product and b) getting a second longer meeting where discussions about quantities and price would take place if time does not allow the current meeting to be extended.

 

[bwglaw]

I used to share an office with a Product Designer and just wondered if you could get one on board as they may have contacts with large retailers and can be useful to answer technical questions of the product, especially if you do not have the product ready

 

[parkroadwest]

I have a product that i would like to get into argos - any ideas anyone ?
Any names or numbers as regards buyers would be very useful.
Regards Lee

 

[qwerty123]

yeh i suppose you got to speak to someone then make your way up to the actual main buyers of the company. My idea is basically a new mouse thats all i can say really

Thanks for the advice !

 

[DeveloperBloke]

I would like to elaborate a little

With our product we had the following options (ours is a collectable, nearly ready now), but the same applies to any product really i suppose

1. Large chain = alot of stores

They will generally buy a high yield of your product, so it is very good for cash flow. For sure, dont let your self get taken for a ride, but this is not their aim. They want to make money, so they will be looking for the best price, as should you from your manufacturer. approach a couple of chains and see what they say, you can even play them off against each other if your product is that good. it is hard to get their attention though, and can take many months of meetings and testing. BUT, and here is the biggest thing to watch out for! If your product doesn’t sell very well in a high % of their stores, they will whack it on sale across all stores (including where it sells well) and completely destroy your product and its brand.

2. Small independents

Supply to smaller stores (even smaller chains of up to 8 or ten stores). Your product isn’t going to sell everywhere, so approaching smaller independents, if it doesn’t sell in a particular store or small chain, they will simply stop ordering it, yet where it still sells, it will be allowed to flourish. Higher unit price can exoected (typically 45%)

The cons
Slower cash flow, need to set up a distribution network, can be costly

3. Distributor

Approach a few distributors, and see what they think. Distributors generally have something you don’t, namely lots of stores to sell to. They will be geared up to distribute your product. A low unit price will be used, so its volume that makes you the cash. It also has very low over heads using a distributor, so you can concentrate on developing other products.

The Cons
Be very careful of what you sign, get a very good distribution agreement lawyer to over see the deal. Distributors can rip you off, and I’ve even heard of one contract someone signed which had a clause that meant even the owner of the product couldn’t sell their product, and only the distributor could, so be very careful.

Low unit price (typically 30% - 35%), but the lower you go, the more the distributor will make per unit, so they should (in fact insist) that they put money into actively marketing your product, and attending trade shows. Some may even want sole rights, if this is the case, then be careful, but you have great power if someone wants sole rights. You have big bargaining power. You can insist that they buy huge quantities
ALWAYS REMEMBER with a distributor, there is a large market, and it is up to you to specify what a distributor can and can’t do, to what stores they sell to, and what areas/sectors they can sell to (i.e. counties, web based, small chains only)

4. Direct retail

Selling direct will bring you the highest profit margins, but, with it will come marketing costs, running costs, staff (potentially), and web site costs.
I wouldn’t recommend a store, but certainly set-up an e-commerce site. Get your product reviewed in trade magazines, get some editorial written. Your biggest challenge here is marketing. This also has a low cash flow, so ensure that you have some working capital to


Whatever you use above, ensure you do some research to find out who likes your product, so you know who buys it. No use going to ebuyer, if it is bought by people who don’t like computers!! This is key to your business, you can have the best product in the world, but if people don’t want it, you’re screwed. It is also very difficult if you don’t know where to find your customers. How do you reach and sell your product through you e-commerce site to these people who don’t like computers??! Ensure that you choose the correct route to market

Get yourself books, and get advice

We have spent the last 12 months re searching our options. We have decided to use smaller independents, and e-commerce along with a few distributors. It all depends on what you want your company to do, and where you are willing to invest your time and resources.

Good luck, it’s a hard journey and don’t be worried by being told no.

Jamie

 

[fastfences]

Excellent advice, Jamie!
cheers, Nigel

 

[Spiritus]

Developer Bloke has hit the spot with his advice...............just do it !

I remember fretting about making my first phone call to a Buyer of a national mail order company nervous about making a fool of myself.

Buyers are used to getting calls from prospective suppliers. Without new suppliers their product portfolio would be very stale.

Before you approach them, try to anticipate what questions they will ask and prepare your answers. This is a "just in case" scenario as the reality is you will be asked to put something in writing to them possibly with a sample. If they are interested they will contact you although a follow up call doesn't do any harm if you haven't heard anything for a week or so.

 

[DeveloperBloke]

a good tip

if they ask a question which you don't know, then dont um and err, or make something up, be clear and say that you are not sure of the answer but you will find it out and get back to them

jam

 

[telemax]

Hello,

I am currently developing a product . I am thinking into the future a little bit , but i am wondering really what the best way is to approach big retailers with my product. For example companies like www.Ebuyer.com who are a very strong competitor in the target market of my product. Can anyone give me some advice on how to approach these companies ? Bearing in mind you only get one chance with a product

Thanks a lot !

Hi

you need to call the retailers, find out who their buyers are, and speak with them. You will find most of them easy to speak to and polite, try for an appointment. I think it never hurts to get in front of people as they will remember a face much more than an email or a leaflet.

If its a good product and you throw enough stuff against the wall some of it is bound to stick.

PM me if you want any advice, as I have done a couple of similar projects in the past for customers

Regards

Jonathan