How to Get Your Product into Retail
Published by Broadword Publishing
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Cardiff, NJ 08234
www.broadword.com
Copyright Matthew Yubas
For Free Tips, Articles, Coaching, and the Invention Success Kit
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Smashwords Edition
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This product is not a substitute for legal advice.
About the Author
Matthew Yubas is a Certified Professional Marketing Consultant for the Small Business Development and International Trade Center. He has developed and marketed products for over 24 years as an engineer, product manager, and independent consultant for startups, small business, and Fortune 500 companies.
He has launched new products such as software applications, wireless devices, and websites. In addition, he has helped clients in a diverse number of industries that include photography equipment, auto accessories, soy candles, children's clothing, sporting goods, digital art, and home décor.
As an entrepreneur, he was a co-founder of a software company that developed one of the first personal information management software products. Matthew earned a B.S. in Engineering from Pennsylvania Spring Garden College in Philadelphia, and an M.B.A. in Management from San Diego State University.
He is a professional member of the Inventors Forum, Licensing Executives Society, and Product Development & Management Association.
Welcome
I’m excited for you! You have a great product and you want to get it into retail. In this material, we’ll cover a wealth of information that has taken me years to discover through training, trial, and error.
No matter what your product is, these principals apply. Please follow the step-by-step instructions and you’ll be far ahead of the game to make your invention a winner.
Best Success,
Matthew Yubas
For Coaching and other Services, please see my website:
Contents
What Retailers Want
How to Approach Retailers
Fulfillment and Inventory
Selling to Retail through Showrooms
Hiring a Sales Rep
Build a Retail Track Record with Wizard Distribution
Selling Your Product on QVC and HSN
Selling Your Product on an Infomercial
Selling Your Product through Catalogs and Webstores
Selling Your Product as a Private Label
Selling Your Product as a Promotional Item
More Distribution Channels
Market and Sell at Trade Shows
Personal Selling
Selling Your Product as an OEM
“I probably have traveled and walked into more variety stores than anybody in America. I am just trying to get ideas, any kind of ideas that will help our company. Most of us don't invent ideas. We take the best ideas from someone else.”
– Sam Walton, Founder of Walmart
What Retailers Want
While you might want your product sold at Walmart, this is not always the best place to start. Before approaching the large chain stores, start with small independent stores and small distributors to gain a track record of sales. Distributors and retailers generally order a small amount for a test. When the product sells, they order more and expand the territory.
In general, distributors and retailers look for products with:
* Perceived value to the end-user (e.g., solves a problem or meets a need or want).
* A large sales potential and high margin to generate a profit (e.g., margins can range from 35% to 70% for durable goods, and 10% to 25% for consumables).
* Nice packaging similar to products they currently carry.
* A company able to produce the product in the volume they need.
As an example, Costco buyers are looking for products that:
* Are made of high quality.
* Provide great value at a reasonable price.
* Have a large potential sales volume.
* Meet the needs and wants of their members.
* Have a certain degree of uniqueness.
Support, in the form of in-store demos, point of sales displays, advertising, and promotion is also a key selection factor. Retailers want support and welcome just about anything you can do to help generate sales. Ask retailers for their specific desires.
How to Approach Retailers
Brochure – Color brochure of the product (professionally
designed and printed on quality paper) – product description with
benefits, features, any awards, testimonials, and contact
information.
Cover letter – One page cover letter (printed on your business letterhead) – highlights of your product: description, benefits, who the product is for, its need in the market, how the need is not being met, and pricing.
Product Fact Sheet (printed on your business letterhead) with the following:
* Product name
* Product category
* Short product description (focus on benefits to the end-user and retailer)
* Suggested retail price, wholesale costs, minimum order size, warranty
* Type of retail packaging including size, weight, and how displayed (merchandising)
* Master carton information including size, weight, and number of units
* Lead time to ship to the retailer
* Any certifications (e.g. UL, CSA, CE)
* Any intellectual property you hold (e.g. patents, trademarks, copyrights)
* Names of competing products and your competitive advantages
* List of any retailers currently selling your products
* Marketing plans (methods to drive traffic to the stores)
Company Fact Sheet (printed on your business letterhead) with the following:
* Company name
* Contact information
* Website address
* Mission
* Brief history
* Dun & Bradstreet D-U-N-S number (www.dnb.com)
You should have the above information ready by the time you make contact. Product samples with packaging are often requested later.
When you have these materials ready, take the following steps to approach a distributor or retailer:
1. Determine which retailers carry your product type. Search local retailers and the Internet. Use a search engine with keywords such as [“your product type” and “retailer”]. Take note of how competing products (and products in the same aisle) are priced and displayed.
2. Call companies and ask to talk with the Buyer or Category Manager who handles your product type. For small independent stores, talk to the owner. Ask for policies and procedures for carrying new products. Often they direct people to a company webpage with information about new vendor applications.
3. Submit the information and material requested.
4. Follow-up with a telephone call to make sure they received your information. Then, ask about the next steps.
Keep in mind most buyers do not have time for presentations. They want to review your application first, and then decide if they want to talk further.
When you talk to a buyer, be prepared to answer their questions:
* What sales do you expect from your product? (This will be compared to the products they currently stock.)
* How quickly can you supply products?