Question

Topic: Strategy

Driving Sales To Big Box Stores

Posted by Anonymous on 11/24/2009 at 1:47 AM ET 125 Points
I have developed a software program that will directly drive customers to a big box store. It is a new idea that taps into an existing overlooked customer base and generates guaranteed sales.

It will cost the big box nothing to promote or advertise so they do not pay until a sale is made.

I know that most large corporations spend 5-7% on marketing that is not guarantying sales. Could I charge the big box 10% at the point of sale for this market-driving tool?
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RESPONSES

  • Posted by SteveByrneMarketing on 11/24/2009 at 3:08 AM Accepted
    this sounds fantastically great!!!!

    does it involve data aggregation and cloud computing storefronts? I understand that it is a fine line between sharing exactly what your software does and not revealing technical information that may alert competitors. What can you share about how this software will work?

    I'm not sure I understand your last paragraph. You can charge whatever the market will bear, you are first to market with this software.

    Steve
  • Posted by Inbox_Interactive on 11/24/2009 at 8:06 AM Accepted
    You need to know what your prospects' gross margins are before you can attempt to think about what they will pay.

    I'm thinking 10% is rich, though. After all, the store's branding, marketing, and advertising is on some level still helping your sale get made.

  • Posted by Jay Hamilton-Roth on 11/24/2009 at 8:52 AM Accepted
    It seems you have to first figure how to structure the deal: a one-time payment (first visit), a recurring payment (each time they purchase), or a flat fee. And before you can do that, you need to prove your idea works. Can you test market it in smaller market in an isolated area (you'll need access to their sales data in exchange for potentially more sales). Can you (scientifically) prove that the visits to the store are because of your action?
  • Posted on 11/30/2009 at 5:51 PM Accepted
    oh if it were that easy.

    is your software patentable? because if it's not someone may come and take your concept in a flash if it's really a breakthrough in marketing.

    if it's cell-phone or pda related you better check existing patents and provisional patents.
  • Posted by AA/Swap on 12/5/2009 at 9:14 PM Accepted
    Hi,

    Charging 10% will bi too high. Adopt market penetration strategy by asking around 5%. YOu will people interested in trying out your software, once you get good feedback, after some span of time you may gradually increase the price of your software.

    Swap.
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