Help!!!! I have a meeting with Superdrug... How do I impress them?

[beautycredit]

Hi everyone!

I have exactly 3 weeks to prepare for a meeting with the buyer at Superdrug, I've never run a business before but I was fortunate enough to spot a fabulous cosmetics brand and persuaded them to sign me the sole rights to distribute in the UK, and after many months of calling and sending Superdug my products they finally agreed a date to meet me....

Ekkkk .... so what now? I've never put together a proposal before, I have no idea what data I need to present or what is expected from the meeting, the brand is huge in Asia and is stocked in Watsons (Thailand), Sasa (Hong Kong), Guardian (Singapore) to name but a few countries and is actually one of the top 5 cosmetics brand in Korea, but how do I win over British buyers that know nothing about the brand?

What exactly goes into a business proposal? how should it look? I met with an associate from Beer and partners for advice but he wanted 10% to take charge and help me win the contract but that was for a cost of 10% of 1m. whoooaaa....Whether he is a pro or not I'm sure that is way too much?

Please help with advice or comments! I hope anyone that has been through one of these meetings can let me know how it will run.....

Thanks so much!

Natalie

 

[Boris]

short skirt Nat for starters

good luck


Boris

 

[noidea]

Hi everyone!

I have exactly 3 weeks to prepare for a meeting with the buyer at Superdrug, I've never run a business before but I was fortunate enough to spot a fabulous cosmetics brand and persuaded them to sign me the sole rights to distribute in the UK, and after many months of calling and sending Superdug my products they finally agreed a date to meet me....

Ekkkk .... so what now? I've never put together a proposal before, I have no idea what data I need to present or what is expected from the meeting, the brand is huge in Asia and is stocked in Watsons (Thailand), Sasa (Hong Kong), Guardian (Singapore) to name but a few countries and is actually one of the top 5 cosmetics brand in Korea, but how do I win over British buyers that know nothing about the brand?

What exactly goes into a business proposal? how should it look? I met with an associate from Beer and partners for advice but he wanted 10% to take charge and help me win the contract but that was for a cost of 10% of 1m. whoooaaa....Whether he is a pro or not I'm sure that is way too much?

Please help with advice or comments! I hope anyone that has been through one of these meetings can let me know how it will run.....

Thanks so much!

Natalie

Why do British buyers not know anything about the brand if it is successful in asia?

At the end of the day it is not your job to win over buyers, it is superdrugs, you need to sell the product to them!

You need to drill home that how successful the asia market is...

 

[mara]

I think you should emphasize the success in the Asian market and point how many clients of Asian origin there are in the UK.

Good luck!

Mara

 

[noidea]

Add all the markets up in terms of population and then compare it with the potential market here. If the combined market is significantly larger it would help loads. If it is just slightly bigger or smaller it be much more difficult.

I think the case would be more of negotiating a better deal for you (i.e. more profit) then whether they are going to stock it or not.

 

[Magic101]

Firstly since all the cosmetics at Superdrug are women ignore the comment above to wear a short skirt - what century is that person living in?

1. Do your research.
look at the other cosmetics brands stocked in Superdrug and see where your brand would fill a gap.
call stores across the chain and ask the store managers which cosmetics brands perform best in their stores
look at the entire offer and the pricing
look at the promotions in store 3 for the price of 2, BOGOF, etc and be ready to discuss promotions

Exploit the Watsons link
Superdrug is owned by AS Watson and Watsons is as well.
If its successful then the buyers MAY know it (but don't be surprised if they don't it's a different business)
Get figures from the brand on what the rate of sale is in Watsons - profit per linear metre, average sales per store per week

Remeber act like you've never done this before and you'll come across as an amateur - only work with lrge retailers such as superdrug if you can be assured you can work to their scale and deadline. There are no second chances. But be confident and do your homework and you have a chance.

of all the major health and beauty buyers Superdrug's are by far the nicest and most receptive to new people with new ideas. GOOD LUCK!

 

[Paul Kelly ICHYB]

Congratulations on getting the products - as someone who has not run a business before (you dont say what your experience is!).

The Watson's link must be capitalised on - ask the suppliers how succesful it is in other markets with Watson - but be careful on the approach, though - Asian markets are different to European, so capitalise primarily on the existing relationship.

Know your costs and how low you are prepared to go in price. I am sure they will agree on a price and then indicate settlement discounts, A&P support etc.

Make sure you can finance it! You may have to wait 3-4 months between paying for the goods and getting paid - can you cover this?

As for the adviser, there are a few things to bare in mind:
- pay flat fee for an advisor - you know the cost!
- Get an investor - you get money into the business and possibly an advisor
- Give a small % away for 'free' advice! There is no guarantee that you will get ANY business, so, if you are not going to pay for advise, how does the advisor get compensated? They are also taking a risk!

I would be more than happy to help and would not ask for anything like 10%! Also bare in mind, you say you have never run a business before - this is potentially your biggest risk, probably not knowing the 'bigger risks'. The worry is that when you learn the real costs, you may be put off! Sadly, it is not as simple as 'I buy for this price and it retails for that price'!

 

[mikelaluz]

Dealing with UK Retailers can be the most daunting experiences in business – I’m sorry that’s not what you wanted to hear. The up side is that if you get it right it will be very profitable.
I am ex M& S and my last major business was selling back office systems and retail consultancy to high street chains ( Woolwoorths, Orange, Body Shop, Halfords etc) At the senior buyer and board level negotiations were always very tough. We implemented two strategies that assisted both our growth and eventual sale immensely.
Firstly whenever negotiations reached a certain point we brought in a Senior Director of our Software supplier – in our case SAP
Secondly we appointed a non exec director who was an ex Littlewoods main board director and we wheeled him out for all major presentations and meetings – he spoke their language and added gravitas to our offering
There is no reason why you could not adopt the same strategy. To pay an un known agent 10% is crazy because whatever the outcome your margins will be squeezed.
From a practical pre-meeting point of view gather as much sales data as possible particularly any chains such as Watsons – has the product been in the States, Australia or Europe and if so what are the sales figures. You also need information about your manufacturer (even better to have them at the meeting).
Go into Superdrug and check out where your product would physically sit on the shelf and understand the products around it. Their Range is their key sales tool what is your USP and why will it enhance their range? Generally be knowledgeable about the industry and don’t fail to mention the massive interest you have from Asda and Sainsbury.
They will want to know about logistics:
Supply Chain – How does product get to their delivery hubs
Ordering – Do you have a system they can get into
Stock Levels – where, how much and replenishment times
Returns – policy and procedures.
If these are not n place you can use a third party logistics company – call one and get a proposal – make sure they already deliver to Superdrug. Alternatively your supplier may already have a third party arrangement in the UK or Europe.
Finally but probably first get a lawyer to check over your exclusivity because retailers will not hesitate to go direct.
I hope this is useful. If you require any further information please do not hesitate to PM me
Good Luck – A great opportunity!!
Mike

 

[Zeno]

Will the product pass UK testing requirements?

 

[beautycredit]

Hi everyone,

Firstly thank you for taking the time and effort to share your experience, I have to admit its really very helpful, another admission is this will be my second meeting albeit with a different buyer at Superdug so this is why I am making a more conservative effort in preparing. Of course I fully intend to revisit the first buyer too. Its quite difficult to keep on top working a full time job too though, so as of this week I went part time. I know its the way things go when your starting up in business I dont mean to ramble on but when can I have a holiday?!!! I'm sure you all worked 15 hrs a day before you became established so I'll shut up now.

In regards to whether the products will pass safety, the manufacturer is the top 5 in Korea, and I have started processing certificate assessments in the UK so far no problems there. I've had products featured in several national magazines since we launched this year (for free) and they loved them, USP? I'd say my products beat the pants of Rimmel in terms of quality and pricing. Try finding an auto eyeliner encased in metal with a dual end blender that contains vitamin E and Macademia Nut for 3 quid.... I just know they'll sell like hot cakes.

Can anyone send me what a business proposal should look like? what points should it cover? is it like a business plan where you have a set criteria to cover?

As for wearing a short skirt?

hmmmm It wouldnt work what with my legs being fat!

 

[Chris Ashdown]

The bottom line is what price they can buy at, what stock levels they need and you can stock and what realistic selling price you would reccomend

Go back to the manufacturers and ask their marketing department for all the information on sales you can get breakdowns on sales by regeion and also product sales breakdown

Dont bullshit the buyers, tell them where your are at and what your would like (they are human and may want your products), If you do not have a answer tell them you need time to check things out and get back to them latter that day or the next day at the lattest.

What are they looking for
They can quess how many they could sell they are the experts in that market so questions like if I ordered x amount to trial how soon could you deliver, what would be the delays on re-orders of say xxx number, will you supply promotional goods, will you pay towards marketing this product

What are you looking for

How many would they be looking to buy as a first trial run, what size orders would they be placing after that, what are their payment terms,Where would we deliver to and any special paperwork requirements, can you get your supplier to provide sales and marketing goods in English to help move sales

 

[Dave.F]

Hi beautycredit

You said: "I was fortunate enough to spot a fabulous cosmetics brand and persuaded them to sign me the sole rights to distribute in the UK"

How secure is this contract?

That would be my biggest concern, if they like the cosmetics they will try and buy direct.

Superdrug will have many contacts in the Far East.

Be very careful.

Who wrote the contract for you?

 

[Boris]

Firstly since all the cosmetics at Superdrug are women ignore the comment above to wear a short skirt - what century is that person living in?

1. Do your research.
look at the other cosmetics brands stocked in Superdrug and see where your brand would fill a gap.
call stores across the chain and ask the store managers which cosmetics brands perform best in their stores
look at the entire offer and the pricing
look at the promotions in store 3 for the price of 2, BOGOF, etc and be ready to discuss promotions

Exploit the Watsons link
Superdrug is owned by AS Watson and Watsons is as well.
If its successful then the buyers MAY know it (but don't be surprised if they don't it's a different business)
Get figures from the brand on what the rate of sale is in Watsons - profit per linear metre, average sales per store per week

Remeber act like you've never done this before and you'll come across as an amateur - only work with lrge retailers such as superdrug if you can be assured you can work to their scale and deadline. There are no second chances. But be confident and do your homework and you have a chance.

of all the major health and beauty buyers Superdrug's are by far the nicest and most receptive to new people with new ideas. GOOD LUCK!

it was a joke

great first post by the way

 

[Barnie]

At the end of the day it is not your job to win over buyers, it is superdrugs, you need to sell the product to them!

sadly this is not the case with beauty products

well done on getting through the doors but the hard work is about to start

they will more than likely want a introductory rate to run a promotion on launch for example,

another good way is to give them 3 months over other key players like boots, john lewis ect this will encourage them to advertise the product with showmaterial throughout the stores

im not going through everything now as dinner is ready but

i can answer most of the above questions actualy if you wanted as i work in this field, i can also tell you which areas are getting more popular


drop me a pm with any questions and ill get back to you

 

[Red Rocket]

Hi
You need to watch out for a couple of things. Big players like this will often want full sale or return (SOR). If this is the case be very careful on how much stock you pile in, and what the terms are.

I have had experiance were a major high st chain will just refuse to pay for unsold stock even when SOR is not agreed. They just knock it off the invoice and request you remove the stock at your cost.

It is not unusual to wait 3 months for invoices to be paid, obviously this can be the end for small businesses.

Present with what you have:
Press articles
Figures for other markets etc

They will want to know how you intend to promote the product to support future sales.

Remember all stores charge for promotional space, such as end on's, eye level racking, window displays etc etc.

Stores are normally graded so you will buy promotional packs at various levels of store grade. i.e. Grade A stores only, one dump bin in end on position may cost several thousand pounds.

I used to deal with Tower Records, companies I represented used to pay £10000 for a window display in their Piccadilly Circus store for one week.

Included in this price was one end on rack, all stock was on SOR.

Hope that helps.

 

[beautycredit]

Thanks Red Rocket,

I never even realised promotional space was charged. I'm just hoping to catch their interest at this moment but this is very good information to bear in mind.

Thank you for taking the time to share!

Natalie

I have a question: How do you calculate special promotions like 342 when you charge the retailer? obviously buy one get one free is just selling to the retailer at half price right, but how do you charge the retailer if the promotion is 342 and there are different product prices in the range. Hope one of you budding retailers out there have the answer.... thanks!

 

[Red Rocket]

You can do this in two ways. One would be to divide the cost of two items by 3, and charge accordingly. Obviously make sure they order in multiples of 3. The other method is to invoice for three units making one FOC (free of charge).

I think the FOC unit will still attract VAT at the full wholesale price, it certainly used to be that way.

 

[Ice Maiden]

How the hell do you get a meeting with Superdrug? I have a range of organic skincare products I would like to introduce to them, but just cannot get through to the right person. I am constantly going round in circles. Any hints or tips would be appreciated.

 

[who_me]

it was a joke

great first post by the way

Well it made me laugh

 

[Barnie]

any updates on how well his went