Top 5 Things You Should Never Sell to a Retail Buyer

There is nothing quite like it for a retail product vendor!  That moment you walk into the tiny room filled mostly with a table and too many chairs.  You’re a bit early, as the last thing you want to be is late for your big meeting with the retailer who is going to put your product on the map.  You lay out your presentations, go through some last minute prep in your mind and look at your watch about 50 times.  Once your meeting time has come and the buyer’s arrival is eminent, the last thing to go through your mind is, “don’t screw this up!”

How much control do you really have in a Big Box buyer meeting?  Can that meeting really make or break your product’s chances?  What about your product?  Surely the buyer is going to see how amazing it is and no matter what you say or don’t say the product’s merits will shine through.  Right?  The true answer here is that YOU are the only one who has any control in a Big Box buyer meeting and YES that meeting can make or break your product’s chances. 

I know!  The buyer is the one who makes the ultimate decision so how can you have all the control?  What the buyer learns about you, your company and your products comes from only one person, YOU!  What you say, teach, demonstrate and offer matters and can make the difference between getting a commitment to go to the next step, or getting a “follow up with me in a few months.” 

After participating in over 100 buyer pitch meetings in multiple countries, I have some definite do’s and don’ts that I find critical to my clients’ success. 

Today we will focus on 5 things you never want to sell to a buyer in a pitch meeting:

1. Never sell yourself – Unless you are a $20 million dollar per movie celebrity sell your company or product instead.  Retailers want to do business with companies, not a single person; so present to them your company and product, not you or what “you” have done.  Companies are far more stable than people and better for retailers to partner with.  If you invented your product by all means discuss that during your demonstration of the product, but don’t make the pitch about you.
2. Never sell your future marketing spend – Instead sell what you are doing right now with regard to marketing.  Retailers cannot force you to make good on the millions you said you would spend if they buy your product and for that reason they don’t base many decisions on what you say you will do and more on what you have done or are currently doing.
3. Never sell your product’s sales potential – Instead sell what your product is currently trending right now.  Buyers have no shortage of products that have potential, but what they are really looking for are products that are showing potential based on current sales history.  If you have a limited history that is ok, simply speak to what your product is doing, not what it might do in the future.
4. Never sell your product’s future look – Instead, if possible, have a production-ready product and packaging to show.  If a production-ready product is not possible, at the very least have a professional rendering of your product and packaging.
5. Never sell your friends’ opinions of the product – Instead, be ready to present real consumer feedback and testimonials.  If you don’t have this, you need to get it.  Your product is not viable until it has independent, consumer validation.

At its core, a retail buyer meeting is really just a conversation between people with a common goal.  That goal is to provide that retailer’s customer with the best products at the best prices.  Don’t freak yourself out, breathe and:

1. Come prepared
2. Know your market
3. Know your product
4. Know your competition
5. Know the retailer
6. Anticipate their questions
7. Don’t waste their time

Don’t worry, you will do great!!

We would like to hear from you.  Tell us about your experiences in the buyer meeting trenches.

How To Get Your Products into Big Box Retail: A Spreecast Event!

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How long will it take to place my product into a retail store!

Under the frequently asked questions category "How long will it take" is by far the most prolific question asked.

This is not surprising as vendors are anxious to see their products on the shelves of big retail and finally be rewarded for the long hours it takes to conceive, create, produce and market a retail item.  No one in the final stages of bringing a product to market is without significant battle scars, however in the foxholes of product development there are no pessimists.

There is no exact science when it comes to determining how long it will take to sell product into retail, however items generally fall into one of two categories. 1.  Products that have a clear category and dedicated shelf space already in a retailer.  An example of this could be flash drives.  Perhaps your company has developed a new type of flash drive that will blow the market wide open.  In a case like this we would only have to convince the buyer to purchase our new and innovative product not to create brand new space on the shelf as they are already selling like items.  2.  Products that are brand new to the market and have never been sold before.  Items like this create double the work, not only do you have to sell the benefits of the new item you have to help the buyer understand where they would merchandise this new product and why taking a risk on it will pay off.

Although the newer items to market will generally take more time and work you can expect the process to take 3-18 months or longer.  I know this seems like a long time, however unless you are Sony, Campbell's,  Johnson & Johnson or like companies the process will be lengthy and the sooner you begin  the faster you will see results.

Below I have created a best case scenario to help illuminate the process.  For the purpose of this example we are going to say that the buyer loves the product out of the gate, they don't go to China, get sick or go on vacation during the process.  This example begins during the preparation phase.

1. Sample evaluation, pricing strategy and presentation prep - 30 Days
2. Sending the presentation to the buyer and receiving a response - 30 days 
3. If requested sending samples to the buyer - 15 days.
4. Review of the samples by the buyer 15 days.
5. Filling out of vendor paperwork, negotiating the contract, receiving all necessary signatures, being approved and receiving your vendor # -30 days.
6. QA testing on the product or 3rd party audit on the manufacturing facility - 30-90 days if required
7. Cutting a PO - 14 days.
8. Lead time to manufacture the product - 60 days.
9. Delivery time to the retail warehouse - 15-30 days depending on where it is coming from.
10. Distribution time to the stores - 15 days.
11. Time to get paid - 60 days.

Remember the above is best case and even if we take out #6 above we are still looking at 91/2 months to complete the process with one retailer.  There could also be the scheduling of a face to face meeting required which will add time.

The idea of the above example is not to discourage, but to encourage.  The sooner you start this process the faster you will achieve your goals.  

At TLB Consulting we can help you through every step of this process.  We can help you maximize your time, effort and results.  Let us help you prepare for success. 

Visit out website or contact us now at Tim@tlbconsulting.com.

How to sell your products to Costco, part 3

Hi all you Costco loving product sellers.

This will be the final post on the subject:

"The 11 crucial steps that should be followed before meeting with a Costco buyer."

If you recall we left off at step 6 which was "Other Costs", I hope these steps have been helpful let's finish it off starting with step 7.

• Potential sell through quantities: : Based on what divisions of Costco you are going after create some scenarios that show potential quantity sales. Costco has 3 divisions in the US and an international division. 1. Costco warehouse, 2. Costco.com, 3. Costco Road Show, 4. Costco Canada (Canada is Costco's second largest market with over 70 locations), 5. Costco.com Canada, 6. Costco UK, 7. Costco Mexico, 8. Costco Japan, 9. Costco Taiwan, 10. Costco Korea.
• PNL: Create an item PNL using all of the preceding information in the other Blog posts to determine viability of program. You never want to do this after the deal has been made. Entering into a program and finding out, after you are having success, that you are loosing money will be devastating.
• Costco: Decide which division of Costco you should contact first. Make initial contact with Costco buyer and gauge interest. You will probably need help here as getting through to Costco buyers can be very difficult if not impossible. If enough interest exists set an initial meeting at Costco HQ.
• Pre-meeting: Make a final decision on at least two, no more than three packaging options. Nail down your options as you will only have approximately 30 minutes to pitch your idea to Costco and you want to have time left over to discuss next steps. Make a final decision on cost pricing to include in presentation. Create your presentation and confirm your appt. one week prior to the meeting.
• Meeting: In your presentation be thorough, but not over the top. Keep your pitch smart and to the point. Be prepared for Costco to have some questions not just about your product, but about you and your company as well. Know your competition and your market. They will test you. Lastly make sure you nail down next steps and follow up before you leave the meeting.

Helping you partner with Costco is my specialty. I can personally help you with all the 11 crucial steps and even help you get through to the buyer. For more information please visit my website.