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What do retail buyers really want from you?
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Jim DeBetta
jimdebetta

Here is an ezine that I sent to people a while back but enjoy it!

When you call on retail buyers, you must be prepared! When I started calling on buyers years ago, I had little knowledge about what buyers expected from me and even less knowledge about what could happen when I finally earned a face to face meeting. I spent many days and lots of dollars flying all over the country to meet with buyers – only to be told to come back when I was properly prepared. Why go through that when everyday is important to bringing your invention to life! Here are some of the “checklist” items you need to be aware of BEFORE you make that call:
• Have retail ready samples to demonstrate and if your product is electronic don’t forget batteries. A buyer cannot make a final decision to purchase a product that is a rough prototype or is incomplete.
• Have your pricing prepared – wholesale and suggested retail pricing that allows you and the retailer to earn substantial profits.
• Make sure you dress well as you can never be overdressed.
• Be on time for your meeting. I can’t believe how many people show up late for buyer meetings!
• Visit one of their stores BEFORE your meeting so you are knowledgeable about their current product assortment and how your product fits in.
• Know everything about the retailer including store count, who their competitors are, and what their goals are as a company.
• Be prepared to answer questions about your manufacturing capabilities as buyers must feel confident that you can produce enough product should it sell very well.
• Buyers simply cannot replace an item that is currently selling well unless you can convince them that your product will earn them more profit margin and provide a faster turn (how quickly the store sells out of the item) so be sure to let them know if you are currently selling your product elsewhere successfully to give them confidence – even if it is on a local level
There are many important steps to consider when preparing for these meetings but being fully prepared is critical to having that opportunity to getting your products placed.

posted November 25, 2008 13:03 (
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Leigh B
katleigh
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Hi, Jim:
Thanks for the advice! Your suggestions are helpful. You mention the importance of retail ready samples. I am wondering how you are able to do a limited run on your manufacture-quality prototypes for this purpose? I am pretty good at making rough prototypes but I am just now learning about how to get them in retail-ready condition for presentation purposes. I cannot take the monetary risk of large initial runs.

posted November 25, 2008 14:30 (
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Account Removed
accountremoved

Hi Leigh
You can get manufacturer’s samples. I believe these are free.

posted November 25, 2008 15:05 (
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Leigh B
katleigh
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Hi, Tania:
I wondered about that. How many will they give you? Say that you are presenting/negotiating with 3 companies and they each want a sample? I know that you need to be “geared up” and ready to run before you approach companies for licensing…that final step is the part that seems a little mysterious to me still.

posted November 25, 2008 15:32 (
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Account Removed
accountremoved

I do know they give them…and I think it’s a lot, but I can’t say for certain. Mark knows all about that stuff. I’m sure he’ll be on soon and answer you.I want to say 1000, but I’m sure I’m wrong, so just sit tight :-))

posted November 25, 2008 15:38 (
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Leigh B
katleigh
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Thanks for the guidance :) I think 1000 is sort of a minimum run that you have to pay for to start the manufacturing process rolling in many cases. I could be wrong, though.

posted November 25, 2008 16:25 (
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accountremoved

hmmmmm…then maybe it’s just a few free ones ;-)

posted November 25, 2008 16:43 (
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Mark Reyland
markreyland

Great advice Jim…Thanks

Don’t confuse manufacturer samples with a short run production. If you have a long standing relationship with a broker and/or a factory directly. The chances are very good that they will do a small number of samples for free as long as sample production does not require expensive tooling. However…. If you just call a broker out of the phone book, or find one online, they are likely going to charge you for manufacturer samples (even if the factory is not charging them)

In “Short Run” production – (keep in mind there is no set number that defines this term) You are asking the factory to run a small number (normally not less than 500) of units for you to use as rep samples and in our case we use them to do local retail tests. Some brokers can get a factory to run as little as 50 parts (I just did that on a product last week) but if you don’t have a relationship with them they are more likely to drive you into 2500, 5000, or even 10,000 units.

As I’m sure Jim can tell you, China has raised the min number on production in some cases by up to 50% in just the last 6 months….and the prices have gone up as well.

It should also be noted that although you can sometimes score some free samples, it is unlikely that a factory is going to do short run for free.

posted November 25, 2008 16:44 (
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accountremoved

so can you set up 500 meetings Leigh?

posted November 25, 2008 16:50 (
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Jim DeBetta
jimdebetta

Mark is correct…

I deal with factories all the time and unfortunately they simply cannot afford to tool up and make “samples” for everyone that requests them. Too just much expense and not enough payoff for them. To do this overseas without having a relationship with a factory is not likely so you may be forced to do what many of my clients do – have a handful of handmade prototypes here in the states. It will likely cost you a lot more and it all depends on what your product is. if it is a complicated item with moving parts and electrical components for example it could be very costly. There is no simple solution that I know of but perhaps someone else can chime in on any other solutions that Mark or I do not know of…but I feel like we have this covered pretty well! The key is to have the best looking product to show a buyer otherwise they cannot make a real decision. Also, having a great package puts you in a great position since packaging sells as we know and what attracts a consumer to the product….

posted November 25, 2008 17:29 (
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Leigh B
katleigh
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I hear ya Tania! I was thinking that free samples would be “too good to be true.” This is another case where experience and relationships are invaluable. I guess for now I’ll just have to work from drawings and virtual prototypes for the polished “samples” with rough (working) handmade prototypes to demonstrate functionality.

I have read elsewhere where others have used sell sheets, alone, to pitch products. How common is this?

P.S. Sorry for the delay in my response. Very busy holiday here! Happy Thanksgiving :)

posted November 27, 2008 20:28 (
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Mark Reyland
markreyland

Well, free samples are not out of the question, just less likely the more complex the product, and the less of a relationship you have with the broker/factory

Like Jim said, often people will have a small number of samples made – in the trade these are sometimes called “Bankers Models” or “Investor Models” because people will use them to get the funding required to actually move closer to production.

These models come in two forms –

“Looks-Like Models” In this case it’s a model of the product that on the outside is scale and color correct, but does not function.

“Works-Like Models” A model of the product that is scale, color, and functionally accurate.

These two models are mainly used for “dialing in” your product and for obtaining additional funding. They ARE NOT prototypes, a manufacturing prototype is much more complex because it’s what the factory actually uses to develop the tools, molds, and dies needed to manufacture the parts.

As for using sell sheets – It should be noted that Sell Sheets (or sometimes called a Sales Rip) are a tool used by professional sales reps as a leave behind with a product sample in a retail buyer meeting. They have been “adapted” as a tool for “selling” ideas to manufacturers for license deals. However that’s not how they started out.

Can you use a sell sheet to “sell” a license deal?, sure – people do it all the time.

Can you use just a sell sheet to sell a product directly into retail?….not likely since a buyer really wants to see what the final product looks and feels like before they give you an order.

posted November 27, 2008 21:01 (
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Michelle Chung
chinelas_by_michelle

Hey guys,

thanks for all the helpful info – I just launched my brand of footwear (a novel accessory for women who wear high heels – a folding shoe that can be carried in the handbag hygienically) last year in Sydney Australia and have been selling at markets and small stores and beauty salons but would like to sell in larger chain stores. I have no experience here and have been searching the web for info when I found your site :)

Re manufacturing samples – as my shoes were a completely new invention, they had to have custom outsoles made, so i had to pay for the tooling cost, and then they handmade a few samples for me – which I paid 2.5 times the agreed bulk price. They often reimburse this cost to you (not including the tooling cost) if you place a bulk order with them. I use this strategy now, if stores or agents would like ‘samples’ of product from me, I will charge them the RRP price and refund this when they place a wholesale order.

If you want samples that are already made up and part of their existing range or want to slightly customise them, you can usually get a few pieces free, but nowadays factories will charge you as they can’t afford to keep giving them out (imagine giving out hundreds at each tradefair with no guaranteed return)

Mich

posted January 04, 2010 19:58 (
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Jim DeBetta
jimdebetta

good for you and congrats!!! Jim

posted January 11, 2010 13:11 (
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Paul Adams
pss

Thanks for the tips on meeting with retailers. I am not quite there yet, but I am planning on meeting with large retailers as soon as I launch my Sports Shelter. I do as much research as possible before I make a move on any aspect of my invention or business.

Fail to plan, Plan to fail!

posted April 22, 2010 09:28 (
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Jim DeBetta
jimdebetta

Go for it Paul…and let me know if you need further advice…Jim

posted April 30, 2010 15:19 (
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