New Company Retail/Distribution Help.

Discussion in 'General Business Forum' started by Mark Tindale, Jun 14, 2019 at 10:26 AM.

  1. Mark Tindale

    Mark Tindale UKBF Newcomer Free Member

    8 0
    Hi

    We are a relatively new UK company, manufacturing motorcycle products and selling online on ebay and our website.

    I am looking for some advice with regards to how best get our products on the market worldwide.

    We are pretty much an unknown company to most people, but our parts are decent quality and price wise we are very competitive. We send them to many countries, but in very low numbers.

    We currently have 40 products, and this is growing relatively quickly.

    My question is, how and when should we start to look for retailers or distributors to market our products?

    Do we have enough parts in our catalogue to do this, and is this worth doing?

    Also price wise, what type of discount from our rrp should we expect to give to retailers.

    As you can tell, we don't have a clue about this, so any knowledge would be massively appreciated.

    Thanks in advance

    Mark
     
    Posted: Jun 14, 2019 at 10:26 AM By: Mark Tindale Member since: Oct 1, 2017
    #1
  2. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Big Shot Full Member

    4,041 812
    Select the best country you think suits your products and start with a good trade fair, relevant to your products and gauge reaction.

    It may not be cheap, but is probably the most direct route.

    Research your pricing first.
     
    Posted: Jun 14, 2019 at 1:38 PM By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #2
  3. unstoppable

    unstoppable UKBF Regular Free Member

    134 9
    Hi Mark - For international sales, reach out to DTI and tell them about your plans. They will most likely be able to provide you support in some capacity and help you put together a plan of action.
     
    Posted: Jun 14, 2019 at 1:54 PM By: unstoppable Member since: Apr 21, 2017
    #3
  4. Mr D

    Mr D UKBF Legend Free Member

    14,176 1,553

    Trade fair for your product type - retailers will attend and its up to you to woo them.

    Retailers will expect considerable discount. I'm in gifts, wholesale price is around 20% to 40% of retail.
    ie buy at £2 to £4 to sell for £10+. Look around to see what your type of parts typically go for.

    If there is a trade body for your type of work then its worth talking to them too. They should be up on who and when things happen.
     
    Posted: Jun 14, 2019 at 3:33 PM By: Mr D Member since: Feb 12, 2017
    #4
  5. BusterBloodvessel

    BusterBloodvessel UKBF Regular Free Member

    128 46
    I’m in automotive parts manufacturing and you are probably looking at wholesale 30% of retail max, if not less. Many of our distributor customers are on list price less 78%-80%.

    There is still the traditional chain with everybody wanting their margin at maybe 35-40%. So retail (after vat) is £10.

    You sell to a distributor at £2.00 - 2.50
    They sell to a factor at £4.00 - £4.50
    Factor sells to a garage/retailer at £6.50 - £7.00
    Garage sells retail at £10-£11.

    These are VERY rough figures but give you an idea.

    The traditional chain has actually been destroyed a bit by the likes of Euro car parts (factor) importing and acting as a distributor/manufacturer and then selling to the public to cut out the middlemen of garages/retailers.

    Regardless of that though you can’t just skip a step in the chain and sell lower down for more money (would be nice!). For example as a manufacturer if you supply direct to Halfords (retailer) they still expect to be buying at your rock bottom price and they take all the profit for themselves :) Halfords for example expect to buy at 80% of retail.

    Hope that helps...
     
    Posted: Jun 14, 2019 at 7:31 PM By: BusterBloodvessel Member since: Jan 22, 2018
    #5
  6. Socio South West

    Socio South West UKBF Enthusiast Free Member

    819 202
    This.... and if you also do this....

    ..... you will find there is often financial support available for exhibitors at foreign trade events, including co-ordinated shipping of exhibits and a good package of cost saving benefits such as group exhibiting areas
     
    Posted: Jun 14, 2019 at 8:52 PM By: Socio South West Member since: Mar 24, 2013
    #6
  7. BusterBloodvessel

    BusterBloodvessel UKBF Regular Free Member

    128 46
    Apologies I meant retail excl. VAT at around £10. Like I say that's just a rough guide though.

    Also I'm aware it probably sounded like i was contradicting myself by saying there is "still a traditional chain" then "the traditional chain has been destroyed". What I was trying to say is that that old price basis remains - people are cutting out links in the chain but only for more margin for themselves - like I say Halfords being a prime example, they want to sell retail but buy direct from the manufacturer at rock bottom.

    Sorry, it's been a very long day!!
     
    Posted: Jun 14, 2019 at 8:59 PM By: BusterBloodvessel Member since: Jan 22, 2018
    #7
  8. Mr D

    Mr D UKBF Legend Free Member

    14,176 1,553
    20% of retail?
     
    Posted: Jun 14, 2019 at 9:51 PM By: Mr D Member since: Feb 12, 2017
    #8
  9. BusterBloodvessel

    BusterBloodvessel UKBF Regular Free Member

    128 46
    I have NOT had enough sleep this week!

    Yes :) 80% off list!
     
    Posted: Jun 14, 2019 at 10:04 PM By: BusterBloodvessel Member since: Jan 22, 2018
    #9
  10. Mr D

    Mr D UKBF Legend Free Member

    14,176 1,553
    Thought it was a mistake.
    Don't worry, easy to make. Now if only Halfords made such a mistake when buying.... ah well. Can dream.
     
    Posted: Jun 14, 2019 at 10:07 PM By: Mr D Member since: Feb 12, 2017
    #10
  11. BusterBloodvessel

    BusterBloodvessel UKBF Regular Free Member

    128 46
    Ha! Now that would make my life easier!
     
    Posted: Jun 14, 2019 at 10:10 PM By: BusterBloodvessel Member since: Jan 22, 2018
    #11