Many
entrepreneurs who have developed products with the intentions of getting them
on the shelves of retail stores have discovered that appealing to end users isn’t
the only challenge they’ll encounter on their journey to success. Most retailers are not interested in taking a
leap of faith with a new product line in the hopes that consumers will want to
buy it. They don’t gamble and won’t put themselves in a position to lose money
on products that don’t move.
The
following is an introduction to getting your products sold in stores. There are so many articles that have been
written about this topic and they all suck.
None of them actually address the issues that you will undoubtedly face
when trying to get your products into stores.
I won’t bore you with useless suggestions like, “know your product” or “know
the retailers” because I’m assuming you already do and it’s not going to help
you in this process anyway.
In
most cases, it won’t matter what type of products you’re working with. The process is the same. Either way, you have to be prepared to face a
considerable amount of rejection before you start making any substantial sales. That’s just the way it goes so if you don’t
have an iron stomach, you may want to reconsider your career goals.
The
first thing to consider, if applicable, is your packaging or the visual aspect
of your products. Your shelf
presentation must pop for it to be considered by stores. Retailers don’t like simple or boring labels
or packaging that can be easily overlooked.
With hundreds of wine bottles sitting on the shelf at a liquor store,
how many times did you grab the one with the most interesting label? It’s just human nature. We’re visual creatures and we like things
that look appealing.
Many
retail stores, especially the large ones, will require your products to have
UPC codes. UPC is an acronym for
Universal Product Code which is typically a unique 12-digit number assigned to
each product to differentiate it from other products. GS1 US is an organization you can go to in
order to get these unique codes assigned to your products. Most labeling companies will know how to
convert the UPC into a bar code which will then be applied somewhere on your
products packaging or labels.
Contact Them Directly
If
you really think your product is ready, you can take a grass roots approach and
just start reaching out to retail stores, either by phone or by walking in the
door. If you’re doing this by yourself,
you can cover a lot more ground over the phone than you can visiting store
locations, even though face-to-face visits tend to be more effective.
As
I mentioned before, in order to get anywhere with this method, you will have to
shake off rejection like water off a duck’s back. Sharpen your sales pitch and make the store
representative feel as if they need your product rather than just presenting
reasons as to why your products have value.
You
will need to be able to identify who the decision makers are. Depending on the size of the store, you will
either have to deal with the owner or there may be a designated buyer,
purchasing department or category manager.
These people are pestered by companies trying to sell their products all
the time so don’t be surprised to get the feeling like your disturbing them or
if they make you feel like you’re just a grain of sand at the beach.
It’s
always a good idea to target small, medium and large stores rather than just
focusing on one type of retailer.
Obviously, the larger stores will be more difficult to get into because
all of your competitors are trying to get in there too. That doesn’t mean you should avoid the big
players. Just know that they will be
more challenging than the smaller stores.
Small retailers have to define themselves by offering different products
that their larger competitors don’t so they might be more receptive to
considering a lesser known brand. Also
remember that big-box retailers deal in extremely high volumes. If they place a large order that you cannot
deliver, you may not get another chance to do business with them so don’t
approach them until your company is financially prepared for that level of
business.
If
you’re having difficulty getting the right people on the phone, try connecting
with them on LinkedIn. Most LinkedIn
members list their job titles and the companies they work for in their profile. They’ve already done the work for you in
terms of finding out who’s who. Don’t
spam these people but if you are able to make a connection with them there, you
can begin a dialog in the hopes of getting them to consider your products.
Telemarketing Services
You
may be able to utilize telemarketing to approach some of the smaller retail
stores. Outsourcing your sales calls
could be very cost effective and allow you to reach more people than you can yourself.
Many telemarketing companies have access
to a multitude of leads and databases.
They can develop a cold call campaign to reach out to many stores in an
effort to get them to consider your products.
Once they turn a cold lead into a warm lead, then they can pass the
process along to you to close the deal.
Independent Sales
Representatives
Another
very effective approach is to utilize independent sales reps. It may take some time to find reps that
specialize in your types of products and once you do, it will take more time to
find reps that are actually good at what they do. The good thing about most sales reps is that
they already have relationships with the retail stores and may already be
selling other companies’ products to them.
This preexisting relationship gives them and advantage over you and
might make it more probably for the decision maker to consider your products,
rather than just dismissing your line as just another one in the crowd.
You
can find independent sales reps on websites such as RepHunter.net,
Manufacturers-Representatives.com, LinkedIn, ManaOnline.org, GlobalRepresentation.com,
GreatRep.com, RepLocate.com, RepRight.com, Reps4Hire.com, GotSales.com and
resume sites like Monster, Indeed, CareerBuilder, etc. Some of these sales agents are willing to
work on a commission-only basis while others may require a retainer. Contact as many as possible to see if you can
get them interested in taking on your product line. It’s a good idea to map out the territories
you want covered, this way you don’t have multiple sales agents stepping on
each other’s toes.
Wholesale Distributors
In
almost every industry that involves the sale of products, you will find
wholesalers or distributors that supply products to retail stores. Getting an account with a distributor that
specializes in your type of products will expose your brand to all of the
retail stores who purchase products from them.
In fact, many retailers don’t like purchasing directly from individual companies
or manufacturers because it’s too much work for them to reorder their inventory
every month. Dealing with one or a few
distributors streamlines their reordering process and provides them with the customer
services they need.
Working
with distributors isn’t easy. In order
for them to want to take on your line, they may require you to participate in
tradeshow events, advertising campaigns and provide samples when necessary. However, if you’re able to penetrate one of
the large distributors in your industry, you will most likely experience
immediate sales that could be fairly sizable and recurring.
Export Management
Companies
The
easiest way to get your products sold globally is to connect with export
managers who already have relationships with international retailers. This also takes the language barrier out of
the equation. If you start selling your
products internationally, be prepared to have your labels translated to other
languages.
Export
managers can introduce you to foreign markets a lot faster and easier than you
trying to handle the task yourself. They
will inform you if your products are export ready and let you know if your
products are marketable in the territories they manage. Some export management companies may ask for
exclusivity in the countries they are involved with. Make sure if you agree to exclusivity that
the terms are not indefinite. Otherwise
you could be stuck with a company that isn’t generating any sales for you in a
particular region. Allow them to prove
themselves for a period of one year before you decide if you want to continue
with the exclusivity agreement.
Exhibit at Trade Shows
Research
what events and trade shows are specific to your industry. You may have to travel for this. Renting booth space can be expensive but a
few thousand dollars can convert into a lot more in sales. Many retailers attend trade shows in an effort
to stay current with the products in their industries. They go there specifically looking for new
products that they may want to include in their inventory. This is how retailers stay ahead of their competition. Everyone wants to have the next new and
exciting products on their shelves.
At
these events, your products will be exposed to potential buyers from all
over. If applicable, have giveaway
samples and literature about your products that you can present to passersby as
they approach your booth. Exhibitors
attend these events with the understanding that they will gain enough accounts
to justify the cost of the booth. The
experience of being able to engage in face-to-face discussions with potential
buyers is invaluable.
The
key to getting your products sold in stores is perseverance. There are no shortcuts to this process. It could take years for you to establish a
national or international presence. Approaching online retailers in addition to
brick and mortar stores could help keep money coming in while you’re building
your empire. Also having a website could
facilitate the process of retailers finding you. Many buyers scour the internet looking for
products that they think would be good for their store. Don’t ever underestimate the power of the
internet.
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