If I Have New Products Coming Out, When Should I Tell My Buyer

Don’t wait until your product is finished before telling your buyer you have new products in the pipeline. Take your buyer along as a partner during the development cycle. Get his/her feedback on the product positioning, packaging, pricing and styles before you place the first production order. Show your buyer a prototype – whether it is a CAD or mock-up. See if they are excited, lukewarm or hate it. And then find out why. (Tip: Buyerly.com is a resource for doing “market research” with retail buyers.)

Getting buyers on board earlier makes the subsequent sell-in process much easier since they have advised which changes would excite them and make your product “retail ready” in their stores. And I guarantee you that the idea you developed will have overlooked something critical to buyers.

I get the following question a lot. But what if they steal my idea? First of all, if you are already a vendor of theirs, they won’t steal it. Second of all, which scenario is better

I've Landed On A Retailer's Shelf, How Often Should I Check In With Them

Once you’ve landed on the shelf of a retailer, you should be actively managing your sales based on either a sell-through goal or sales expectations communicated to you by the buyer. And when things are looking good, you let them know and praise them (and consequently, yourself). When things are looking slow, you reach out with a recommendation for how you can help them improve sales. 

I Just Received an Order. What Do I Need To Do Now To Stay (And Expand My Brand) On Retailers' Shelves?

Yay! You got a new order! Celebrate and pat yourself on the back. Enjoy the moment, because now the real work begins.

Here are a few areas you will need to quickly focus on:

What is the Best Way To Manage Brick And Mortar Retailers Concerns About Online Retailers

Retailers are focused on developing their omni-channel strategies to stem their bleed of sales to online retailers such as Amazon. As companies selling to brick & mortar, you need to be sensitive to these concerns and offer assortment items that don’t undermine retailer’s efforts to defend their turf. Study up on this topic. Retailers have moved beyond “multichannel” and are now focused on omni-channel as the latest “hot” topic.

Which Is Most Important To A Buyer Customer Service, Inventory Management, Or Product?

Without a doubt, all three are equally important.  My guess is you are not surprised.  However, if you read the entire post, you might be surprised by what I say at the end.

Each one of these elements when executed well eliminates risk.  We talk about risk on this blog a lot – and how risk averse retailers are.  And how careful retailers are when choosing which vendors they work with.  It is worth mentioning that retailers are not looking to be jerks or difficult.  They don’t want to stretch vendors beyond their comfort zone and set them up to fail.  Setting vendors up for success sets everyone up to win.

Here is the ideal vendor across all three dimensions:

Customer Service:  The ideal vendor does not over or under-communicate. They provide information when they say they will and present it in a succinct and professional manner.  When problems arise, a problem is not presented without 1, 2 or 3 solutions for the buyer to choose from.  Good customer service also means there is someone close by or who can jump on a plane the next day to meet with me at moment’s notice.  And values relationship building and a partnership approach.  And that means adding value to our relationships with competitive intelligence and interesting data to help me do my job better.  But above all, they listen. They listen for feedback, they listen to hear how they can serve me better or anticipate my needs.  They don’t get defensive and will be open-minded and take to heart my comments.  This is where a vendor can really stand apart from the rest.

 

What Are The Inventory Control Expectations Retailers Have On Vendors?

Making Inventory Management Mistakes are Expensive
It is common practice for large retailers to ask for a concession when you miss your volume projections.  If your product underperformed, major retailers will chargeback the cost of the unsold inventory or worse yet, additionally charge you the margin dollars they lost when your product didn’t sell.  If your product oversold, and you couldn’t replenish inventory fast enough, the retailer may chargeback the loss sales based on a daily sales rate.

Do I Need To Hire A Sales Representative If I Want to Do Business With A Large Retailer? Where Do I Find One?

If you want to succeed, yes, hire a sales rep.  Here’s why.

As a buyer, I was called on by the following three groups of people:  Sales account managers, sales representatives (also known as vendor reps or manufacturer reps), and proprietors of smaller product companies.

What is the difference between these three groups?

Sales account managers are typically employed by large manufacturers that have a pre-existing relationship with a major retailer.  These are companies like Proctor & Gamble, Munchkin, Hasbro or even lesser known names.  They have years (decades, even) of experience selling to large retailers and have teams dedicated to each retail account.  They usually have a satellite office near the HQ offices of major retailers so they can meet with the buyers at the drop of a dime.  They have data and resources dedicated to supporting that retailer’s business.

Sales representatives resemble sales account managers in almost every way except they are not employed by the manufacturer.  Instead they are hired by the manufacturer and typically represent several manufacturers.  They key thing to note about both account managers and sales reps have the experience to know what buyers look for and can help develop sell-in strategies.

Proprietors of smaller product companies are probably folks like you.  They are just breaking into national retailers or figuring out how to.  They have a very lean sales support or do the sales yourself.

 

Do I need To Hire Sales Reps To Grow My Distribution

Sales Rep's, Account Managers or me.  Who should do the sales for your product line? And what the heck is the difference between these three groups? We answer these questions and more below! 

  • Sales account managers are typically employed by large manufacturers that have an existing relationship with a major retailer.  These are companies like Johnson & Johnson, Mattel, or even lesser known names.  They have years (decades, even) of experience selling to large retailers and have teams dedicated to each retail account.
  • Sales representatives (similar in roles as brokers or distributors) resemble sales account managers in almost every way except they are not employed by the manufacturer.  Instead they are hired by the manufacturer and typically represent several manufacturers.  They key thing to note about both account managers and sales reps is that they have the relationship with buyers and can get new products in front of them.
  • Proprietors of smaller product companies are probably folks like you.  They are just breaking into retailers or figuring out how to.  They have a very lean sales support or do DIY-sales.

Q&A With Founder of A Company Seeking Distribution In Target and Babies R Us

We have a special treat for you.  As bonus to our readers, here is a Q&A between Vanessa, our Buyer, and the founder of a DVD content company that fills the niche of childbirth classes and labor preparation.  Currently, their hero SKU is the number one top-selling item in its genre on Amazon.  In their first year, they hit six figures in revenues!

Here are the founder’s questions and Vanessa’s answers on what buyers at Target and Babies R Us look for.  Is this applicable to your business?

Question: Honestly, can you see my product fitting onto a retail shelf at Target or Babies R Us…or do you think we need to support it more with a kit, per se, that includes a birth ball and more items that feel like goods rather than services?