Know-How Exchange : Student Questions

I have an independent rep agency that sells product via retailers. they are very approachable and always looking for new product. However, you have to have all your ducks in a row. When they take on a new product they put their entire reputation on the line. They will want to be assured you will be there for service, will deliver when you say you will and you will have a quality product.

Hi. I just had a thought. What is intersting about this situation I think, is that it's implied that I *will* "prove" the product *will* sell to the retailer. Without that, the retailer will not agree a contract.

So, that would be my task to prove sales in the circumstances. Of course, I'd have to push all the right buttons for the retailer. The design and price etc etc, would have to conform to the retailer's perceptions of what is required. And that would be a function of the buying habits of the people that walk onto the retailiers premises.

I'd be conforming in many ways, in order to get that promotion that I think might be so terribly important for success.

I think maybe I can answer most of my own question. It's just come to me. I think the advice probably should be this:

Setting promotion as key, is sensible. Customers must get to see the product.

*If* you can meet the retailers needs and *if* there are no disadvantages that you are not unprepared to tolerate, then seeking to sell to a retailer is a good idea.

Being a start-up company, I'll probably have my work cut-out to meet the retailer's needs. It might be something to aim for, unless it's not realistic.

Realism must rule! Sometimes I need avice on how realistic something is.

This what I think:

I think my need was to obtain an aswer that may actually be difficult to give.

I'm starting up a business, seeking to make some product, not yet designed, (the circumstances) and I think a major goal probably should be to sell to retailers, so that the product achieves promotion. Promotion to the end user I see as very very important.

a) One anwser is to say selling to retailers is indeed very reasonable, perhaps even desireable - in principle.

b) One answer is to give a list of things or to advice to create a list of things that one would have to do to sell to a retailer. Very useful definitely.

c) The more difficult answer is to indicate whether, in my particular circumstances, it is actually reasonable to set oneself a goal of selling to a retailers, even if in principle very desireable. This is the thing that is my greatest concern, and I think perhaps this could be very difficult for even an expert to answer.

The thing is b) is a good answer if the list was extensive. Finding out retailers requirements of course would tell me whether it is actually realistic to seek to sell to retailers in the circumstances.

But, in theory, sort of, there could be more useful answer.

For example: Say that retailers very seldom buy from start-up businesses. If the expert says it will be nigh-on impossible to sell to retailers because I'm a start-up business, then that indicates to me that selling to retailers is actually not a practically realistic goal.

Of course, I could have eventually discovered that by talking to retailers themselves and when creating the plan that's required.

But, before doing that, can anyone can give an opinion whether it is actually realistic, *in the circumstances* to seek to sell to retailers, then that would be of greatest help.

Unless I have my answer in: "Its really not as big of a deal to get product placed in a retail store."

I realise you may not have sufficient data.

I'm very picky aren't I? :c)

What I think I got from the answers (Please say if there is an error):

Retailers are very approachable and always looking for new products.

or

Sales Reps are very approachable and always looking for new products.

Make a plan and get everything the retailer needs to know. (Possibly a pre-business plan). (Some specific things were mentioned.)

I will need to prove something to myself about the chances of the product selling to an end user. The retailer will make up his own mind as to whether the product(s) will sell.

Its really not as big of a deal to get product placed in a retail store as one may think.

Its much better financially selling via a rep agency than selling one on one. They will sell for you. You can place in multiple outlets and all of their salespeople sell for you.

Subscribe to some trade magazines. (I think maybe I could subscribe to "Department Store Magazine" and "Gifts & Housewares Magazine", also "Lighting".

Once I've finished my plan, I can come back and submit. MarketProfs will be glad to review and respond to your needs.

As to whether the strategy to sell to retailers is realistic in the circumstances, is not known, and perhaps is unaswerable given the lack of data.

Thanks everyone for your input, I've learned. I'll keep the thread open just a bit londer then close. Rich.