It is the era of the entrepreneur. Many ambitious businesspeople are developing products hoping they will take off with consumers. While website sales may keep them going, getting into big box retailers is where the money is at.
The question is, how do you get into these big box stores? Here are the steps you will need to take.
Find the Buyer
Every shop has buyers that are assigned to various categories of merchandise. For instance, some may oversee food items, some may be in charge of cosmetics and so on. Your first step will be to determine who the buyer is for your product category.
Get a Broker
Identifying the buyer should be easy. You will probably be able to glean this information with some internet research and/or a few phone calls.
The problem is getting the buyer to notice you. He or she is probably inundated with emails from people just like yourself, who want to get their product into their store.
So how do you get the buyer’s attention? You’ll need a broker.
Brokers are third-party companies that specialize in assisting brands in getting into retail stores. But brokers won’t work with just anyone. To represent you, they will need to believe in your product.
So, the question is, how do you get a deal with a broker? Having a great product is a start. Showing a strong sales history and a steady income will also help. You must also show that you have the capacity to take your product to scale.
Have your ducks in order when you approach brokers by putting together a strong pitch as well as the financials and paperwork to back it up.
You Got a Broker vs. You Didn’t Get a Broker
In a best-case scenario, you got a broker. They will help you set up a meeting with a buyer so you can make your pitch. Here’s where all the paperwork you got together for your broker will come in handy again.
If the buyer accepts your product, you will continue working with the broker. They will help with account setup, relationship management, and replenishment. They earn a commission off the money generated from the deal.
If you are unable to get a broker, you’re not completely out of luck. You can still try methods like cold outreach which involves trying to get the buyer to set up a meeting with you without representation. Retail stores also have Open Call events where they welcome entrepreneurs to present their products to possibly make a deal with the store.
These are both long shots, but they are worth investigating.
Getting Ready for the Meeting with Your Buyer
Buyers are busy people. If you set up a meeting, you are likely to have 30 to 45 minutes of their time. You need to make a succinct pitch that stands out. Here are some things you should be doing to prepare.
• Learn the average % gross margin the buyer expects for your category. Build a financial model that shows how you can get the retailer at or above the expected gross margin. It’s unlikely that they will accept your product if you can’t meet or exceed their margin.
• When making your financial model, account for fees due to payment terms, defects and returns, marketing accrual, and brokerage commission. If you don’t figure these fees into your plan, it may negatively affect your ability to make a profit.
• Your financial product should also show how you can boost profitability in your category.
• Retail is a cutthroat business. If you gain space on the retail shelf, someone else is going to lose theirs. You must clearly show the buyer how your product may outperform the others.
• Buyers have two goals; to pick products that will drive customers to their stores and to pick products that earn optimal profits. During your presentation, you must explain how you can help them achieve those goals.
• There are four main angles that come into play regarding how your product drives sales and profitability. These include: brand- explain why customers want to buy your brand; functionality- explain the features your product offers that others don’t; differentiation- this is how your product solves problems in a unique way; value- this is how your product offers more value at its price point.
• Bring data that supports your claims. This can come in the form of your social media following, your sales growth, your sales history with other retail channels, your product reviews, your intellectual property and patents, your customer surveys, and your product demonstrations.
Retail is a lot like real estate. You must show the buyer how your product can generate the most income in your space.
Now that you know how it’s done, you can move forward with your venture. We wish you the best of luck!
Package Design Services
Once you have all the pieces together, you’ll need a great packaging design. That’s where Lien Design comes in.
Lien Design offers graphic design expertise that will get your product noticed. We are on top of the latest trends, and we’ll make sure your nutritional information is properly displayed. We will give you the tools you need to successfully launch your business.
Now that you have the knowledge you need to get your project off the ground, what are you waiting for? Get out there and start making some money!
Written by ©2022 Lien Design
Disclaimer: Lien Design does not necessarily endorse any of the resources above. Lien Design will not be held responsible for any work done with outside companies. The above should not be considered legal advice from LIen Design, Inc., it is for educational purposes only. All designs and trademarks are the property of their respective companies and are being shown for educational purposes only.
Click below to get a no-obligation, fast & free, estimate for your next project.