Many small entrepreneurs
dream of seeing their products displayed and sold in superstores such as
Wal-Mart, Nordstrom, JC Penney, etc in the United States, El Corte Ingles in
Spain or Harrod's in the United Kingdom or in the major superstores around the
world.
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And who wouldn't? If you sign a contract with any of these big stores, you
get national, or even international, distribution for your products. You gain a
wide market for your products, without the cost if you were to do it yourself.
More importantly, your business receives credibility and prominence with your
association with the major retailer.
Doing a deal with a big company is exciting and fun; but it can also be
intimidating. Moreover, landing a contract with a major retailer is not easy.
Here are some suggestions to help you get a major retailer to distribute your
products:
1.
Build your reputation.
Many retailers do not really want to deal with an unknown manufacturer. More
often than not, those who are able to strike a deal with major retailers are
those who already have the reputation, talent and clout. Nevertheless, do not
worry: you still have an ace up your sleeves - the quality of your products. You
must make sure that your products are of superior quality and fills a void in
the product line-up of the major retailer.
2. Talk
to the right person.
Getting a deal with a big company requires special contacts, and knowing the
right person to talk to cannot be overemphasized. If you are pitching your
candles, be sure to talk to the home and furnishings buyer, and not the Vice
President for Marketing! The Marketing VP does not decide what products to sell
in the home and furnishings department, and may have very little influence on
the buyer for that section. You stand a greater chance if you are able to
convince the decision maker, which are most often the merchandise buyers. If you
get lost in the maze of corporate bureaucracy, you stand to lose your chance in
being part of a large retailer. Be patient and persistent, as this process may
take weeks or even months. Things often take longer with big companies, more so
if players constantly change.
3.
Network, network, network.
If you need help getting your products into the radar screen of a merchandise
buyer, participate in trade shows or product exhibits. Buyers often frequent
trade shows, as it gives them the chance to check out the latest innovations in
the industry, compare products, and possibly make purchasing decisions. Be sure
to have all your products and marketing materials organized and presented well.
Another option used by some entrepreneurs is to hire brokers, who of course,
get a percentage commission from deals that they may be able to arrange.
4.
Perfect your sales pitch.
When you finally get the chance to present your products to a buyer, be well
prepared to make a positive first impression. You must convince him or her why
they should include your products in their line up. Think of answers to the
following questions: What can your products contribute to the retailer's
business? Why do you think your products will sell? How does your product
compare to that of your competitors? Is there a match between your customers and
that of the retailer's? Your chance of signing up a contract with the retailer
will depend on how well you explain the answers to these questions. Be clear and
concise, but do not appear too anxious or naïve.
5.
Deliver what you promise.
Before you even consider contacting a buyer, you must think ahead and plan how
you will be able to fulfill your commitment if the retailer offers you a
contract. Nothing ruins a business' reputation than its inability to fulfill
what they promised. Will you be able to produce and supply the retailer with the
number of items they require? Do you have the manpower, facilities and equipment
to produce the items as stipulated in the contract?
If you win a contract with a big retailer, nurture the relationship well but
remain on a lookout for better opportunities.
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