I want to supply retailers... what are they looking for?

[Will]

Hi everyone

I am starting an import and distribution company (starting small) with two products. One is a very cool shoe brand from Argentina that would sell well in the shops here in Australia in the summer (very fresh designs, already well established elsewhere, and I have almost got distribution rights), and has been tested in the market and got great feedback. They are a beach sort of shoe, and Australia sells the highest number of these related shoes per capita of any country in the world.

Secondly, I am having my own branded bluetooth car kits made (clip onto sun visor and one button push to take phone calls in your car). It is a very sleek model and would have a 1 year warranty with it. These are also good for the Australian market as it is illegal here to speak on your mobile phone while driving (unless it is handsfree eg. through earphones or a speaker, you cannot hold the mobile).

The prices I would offer to retailers is very competitive and very likely lower than all the rest, the products are great, though I am wondering what else they would look for in a company. I do have the capital to enable me to order a good amount of stock to start with, and have spent money on creating my own packaging etc for the bluetooth kit (as it is done OEM for my brand name), which is not applicable to the shoes as the shoe company has their own designs.

How do you think they would take to a small distributor over their other current suppliers? My first idea was to allow them to display the products before payment, and only pay me for the goods once sold. This would mean no risk to the retailer and could place me in a better position over the other distributors of similar items. I have seen another bluetooth kit very similar in shops (many large retailers) and is it absolutely no better quality than the one I will import.

What do you think are some things I should highlight to the retailers, and what areas can I beat the competition (apart from price, I have already sorted that). I am looking for info from anyone who has had experience trying to get their product into a decent sized retailer before??

Thanks in advance! sorry about the long post, though you have to give info to get help eh?

Will

[rogercbryan]

Ask them....

[Will]

Thanks for that wealth of knowledge

[Bizinaboxx]

Let's see if I can help....

What's the end goal of the retailer? To make money, right? Bottom line, it's all about the profit. So, put yourself in the mindset of the larger-sized retailer that you are trying to get your products into their stores.

As the retailer, you probably have limited shelf space and you want your inventory displayed and then in the hands of your consumer for a nice profit. You probably have some aging inventory in the back that you need to get rid off too. You have to pay your accounts payable perhaps, or you've got to budget your capital between buying more inventory and running the other aspects of the store (payroll, rent/mortgage, advertising, etc.) Most likely you want a product with a short lifecycle (especially with electronics that become so obsolete so quickly and fashion that's fickle.)

The fact that you are willing to let them pay you after the sale certainly takes out some of the risk of paying you for the inventory up front. But your products still eat up shelf space, and if they don't sell, they get in the way of the other inventory they can sell.

So, what you need to focus on is the salability of your products. What makes them better? Why should they put them on their valuable shelf space? What are your plans to market the products and let your target markets know that they have to have your shoes and bluetooth (to help drive in traffic)? How are these products going to make the retailer money?

You need to convey that if they don't carry these latest and greatest products, their competitors will. Focus on why your products are going to be in demand, the benefits (of product ownership), salability, and their profitability to the retailer. And, let them know that you are so confident these products will sell that you will let them pay you after the sale is made.

Hope this helps.


Melissa Rose, MBA

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