Question

Topic: Strategy

Distributing Product

Posted by Anonymous on 5/12/2013 at 10:10 PM ET 25 Points
I am seeking advice on bringing a product to market and the best model to approach this with.

basically i have found a product that is patented but i would love the opportunity to become the sole distributor in a new territory / market.

my plan is to approach the owners directly and offer them the idea that i want to rebrand the product, build a dedicated website and sell online and on the ground into the retail market.

they currently ship to this market, but freight and timeline would prohibit sales, my pricing would be similar.

the product would state that its made under license/copyright/patented to the original manufacturer.

my proposed model, would include:

at my cost:

*purchasing and holding stock of a rebranded product
small print on packaging would stipulate its made under license.

*build website
*market widely, including social media, direct selling.

i plan to buy these at a reduced rate,
do you think that this model would work?
is it common, and what should both parties receive in terms of an agreement and fair deal to make it a win/win?

i look forward to your opinions.


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RESPONSES

  • Posted by Moriarty on 5/13/2013 at 3:00 AM Member
    What happens if the business in question is satisfied with their systems as they stand? I know there are opportunities, that doesn't mean that the company is happy to have someone else show how dumb they are.

    The best thing to do is go to a tradefair in Shanghai or Hongkong and chat with a few people there. Just ask them what prices they would be happy to supply you with and in what quantities - and any limits they may put on you. The rest is up to you.

    Or you could try places like Alibaba.com for people who don't want to distribute themselves, only want to sell in bulk.
  • Posted on 5/13/2013 at 3:09 AM Author
    Hi Moriarty

    Thanks for taking the time to respond, really appreciate it.

    Your correct they might not appreciate my proposal or they may just decide to do it themselves.
    This is the risk, i am considering taking by being transparent.

    I hope they dont take it as me thinking they are dumb in fact, i hope they merely see the fact that i love the product, am passionate about the product and its market, and have knowledge in marketing that can ultimately lead to sales and brand awareness of there product.


    The concept/idea product has been patented and i am not interested in paying $$$ legally to work around it, rather work with the product that works and offer myself as a marketer who has strong knowledge of the market and a geographical advantage, as well as the ability to speak and sell directly in the field to the right people.

    i have contacts in sourcing and manufacturing, and i know the value of the product at a cost level.
    but i also feel that by using an existing product, i am waiving myself from the legal and safety concerns of the product.





  • Posted by Moriarty on 5/13/2013 at 4:30 AM Accepted
    I'm not sure if you are speaking to the right business. Your #1 job as a marketer is to find people who will deal with you. There is really little point in speaking to businessmen who don't. You will be able to weigh up the situation very quickly and if they are really keen on making more profits through selling their stuff through you, you'll know it because they'll say so.

    You have contacts - find out which ones are really useful and which ones aren't. Surely there'll be a product you can kick off with? Even with limited resources it's amazing what a good marketer can do to sales. Once you've shown what you can do, go back to the big guys and show 'em. Strut your stuff. If they don't bite then, there really is no point in continuing.

    Not everybody understands marketing as well as you do. That they think their systems are better only goes to show how poor their understanding is.

    Let's face it: you need a product AND a business. Get both, this week - no matter how small. Do something with it. It's always better to be doing something than waiting around.

    You never know, they might just hand you their whole marketing department and say "it's yours, and here's a salary". Even if they don't, you'll have built a small residual income. Do that a few times and your rent is paid. Scale it up and you've got yourself a real business.

    Only get in touch with those guys and see if they're interested at all. Then you'll know. Just make sure you have some kind of plan to offer them and see if you can organize a sensible percentage of the sale price.

    There are a good number of marketers and copywriters who make a living this way, and there's always room for creativity. There's room for you, all you have to find is the right space. When you get the time, pop over to Shanghai. Or Adelaide or Auckland. It doesn't matter.
  • Posted by Jay Hamilton-Roth on 5/13/2013 at 7:51 AM Accepted
    You need to first understand their existing sales into your region and research how much it would cost you to significantly improve them (what is the cost of acquisition?). From there, you can determine how much income you can anticipate, and make an appropriate offer. But if you show the manufacturer how to do it better, they might simply copy your efforts in other regions, and reduce your future sales.
  • Posted by Gary Bloomer on 5/13/2013 at 5:37 PM Accepted
    Do you know for a fact that there are buyers for this product?

    A mistake I see again and again in the world of marketing is someone getting all excited about what they think is an amazing product that then fails in the market place because it's not something anyone is looking to buy.

    You MUST carry out all due diligence BEFORE you get involved in this product to be CERTAIN that there are buyers.
  • Posted on 5/14/2013 at 9:47 PM Author
    thanks randall, that is very sage advice.

    i guess i am weighing up my options of going at it alone and bringing a similar product to the market myself vs approaching them directly with my offer to onsell, upon which i am not guaranteed that they will want to this arrangement or its viable.

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