Both Sides of the Retail Table

Make sure a retailer “gets it” by…

1)      Likely a game-changer product doesn’t have much market research or industry trend data pointing to its upswing because it is too new. However, PR and the media are usually fast to embrace new trends or game-changing products. If your game-changer is featured in a magazine, show that to the buyer as evidence of an emerging trend. Plus, media attention serves as consumer education and builds consumer demand, which appeals to retailers. How do you get your product in the press? Send samples to key celebrities or events. Leverage a PR agency to help you find these opportunities and make those connections. Check out our previous posts about how to generate PR by using the keyword search bar (including DIY tips!)

2)      Do research into the unmet needs of consumers.  Doing so helps you build the case that a need exists for your game changing product – and to prove that no other competitor or product is currently satisfying those needs in the way yours can.  A purchase decision hierarchy is helpful in communicating that in a clear and illustrative way.

3)      But more likely than not, you’ll run into a lot of retailers who do not get it. Not to fret. Those risk averse retailers are usually the bigger ones. So if you focus on building distribution and sales history in those smaller stores that are more open to taking new products, that information will serve you well when pitching at these bigger retailers the second time around.

Most products are not game changers. We would like to think they are (wink) but it’s very rare when a product is truly unique. It might very well be a better mouse trap though! So, why should a retailer bother with getting a new vendor on board when it means more work for them? Because they don’t want be left in the dust with the same ol, same ol. Retailers are looking to freshen up their shelves, provide current/modern options when they are indeed better quality and/or innovative, and they don’t want their competition having a “one up” on them (if the product is driving customers to the store, then the retailer who does not stock your product is missing a sales opportunity).

To make sure your retailer “gets it”, be clear about the following:
1. how your product(s) is unique – its features and benefits and how it compares to their current offerings;
2. your product offering – too many options is confusing. Be specific and strategic about the product(s) you are offering and WHY.
3. how you will support their sales – inside promotions as well as overall marketing plan (as well as educate consumers on this game changer which usually comes with a learning curve);
4. share your movement rate at other retailers – this helps on two fronts, both of which show the retailer that their risk is lessened by taking you on as a vendor: 1) you are already a vendor at similar retailers so you have the experience and bandwidth to efficiently and reliably handle their business (i.e. you have systems in place to handle manufacturing, fulfillment, marketing, customer service); 2) you have proven sales figures.

By Vanessa Ting

Romy provided a thorough list of information you should be collecting from your current retailers. The only tip I will add, is that you also want to collect results (both sales and qualitative feedback) on marketing programs you have previously implemented at a retailer. Showing proof of past successes will make future proposals that much more enticing. Retailers love measuring ROI.

Instead, I will belabor the point about why collecting this information is important and the best way to finesse your request for data.

As you begin scaling up your retail distribution and pitching to larger retailers, it will be important to show your sales history and growth trends to demonstrate why you will generate enough sales for these larger retailers. If you haven’t been collecting this information periodically and over time, you will find yourself scrambling to reach out to old retailers or to buyers with whom you have lost touch. Not a good spot to be in.

Here are some ways to ask for this information from retailers to make the request easier for buyers to stomach:

To current retailers: “Can you please share your point of sales data or sell-through data with us? We would like to monitor sales to learn what is working well, so we can repeat our successes with you. And we would like to see what’s not going so well, so we can develop a solution to improve sales for you.”

To old retailers: Well…You’re out of luck…you can ask for this information, but there is very little incentive for them to help you out. You can beg, but it may be an uphill battle. This is why it’s important to collect this information periodically over the course of your relationship with these stores.

Find these tips useful? If you’re in the LA area, join our Mastermind Group meeting on May 15th at 6pm in Santa Monica. Learn more at http://retailpathmaymm.eventbrite.com/

Romy and I had the distinct pleasure of attending and presenting at Tory Johnson’s Spark & Hustle in San Francisco in mid-April. It was an action-filled two days of meeting incredible women entrepreneurs, identifying new ways of increasing profitability, and staying motivated to achieve our visions. Romy and I lead a roundtable discussion with about 24 product entrepreneurs about grooming your business for big box retailers.

I’d be remiss if I failed to mention the FUN and FESTIVE dinner we had after Day 1 at a delicious Italian restaurant in South San Francisco. And it was an impressive group too!  We had founders of Psi Bands, Aqueduck, Babee Covee, Push Pack, Cycle Aware, Nizo Wear…what a remarkable group of ladies (and one man)!

The point of this post is not only to rub in everyone’s faces the fun we had, but also remind our readers of the importance of networking. It’s hard to pull yourself away from your office for a few days but I’m willing to bet that the times you have done so before have always been richly rewarded.  In case you need a nudge to sign up for your next networking event, take a look at the photos below and rekindle that energized feeling you get when you’re out networking and exchanging great ideas. You can certainly see how “energized” we were!  Wine is good like that.

Romy and I will be back out there getting to know other entrepreneurs at Rock the World NYC on May 8-9.  We hope to see you there!

Group dinner – Romy and Vanessa front and center!

And here is us after Day 2 posing for the cameras with Tory Johnson!

Vanessa, Tory, Romy

• POS (point of sale) data. Per sku, you want to know how many units per store per week (UPSPW) you are selling. This allows you to keep track of how seasonality and/or special offers (by you or your competition) influences sales. And, it allows you to share your sales data with potential new customers who want to hear how other retailers’ success is going to translate into a low risk buy on their part.

• Competitive info. Some buyers will absolutely not share this info with you. And then there are those buyers who will. So, ask your buyer, “can you share with me how we are performing in UPSPW vs. XYZ brand?” If they say no, then drop it. If they say yes, start taking notes! If you know how the competition is faring, you can better gauge your performance and adjust if necessary.

• Marketing calendar/menu. Find out what marketing programs they offer and the cost to participate. Be prepared to negotiate the cost down.

• POG (plan-o-gram) review periods. You want to know when the buyers make their decisions so you can communicate with them on new skus, current skus, transitions, etc. You should NOT save your communications to the 1-2 times a year that they are making their POG review decisions. But, be prepared to have more in-depth conversations during these key times.

By Vanessa Ting

Once you’ve landed on the shelf of a retailer, you should be actively managing your sales based on either a sell-through goal or sales expectations communicated to you by the buyer. And when things are looking good, you let them know and praise them (and consequently, yourself). When things are looking slow, you reach out with a recommendation for how you can help them improve sales. And when you have scheduled some marketing activity that might increase that retailer’s sales of your product, you reach out and give them advanced warning and a recommendation for how they can beef up inventory or re-position product to grab the bulk of those sales.

Other than that, don’t be a nuisance to retail buyers. They are busy, but we know that already. Every piece of communication you send them should add value. In fact, a good rule of thumb is before hitting “send” on an email, review what you’ve written and ask yourself, “What here is newsworthy to a buyer?” or “What here will help them sell more of my product?”. If you can’t answer either question, delete your email and start again.

Lastly, there is no prescribed frequency for checking in with retailers…it is as frequent or infrequent as needed as long as you satisfy the condition of adding value to the buyer.

I would check in with them as needed. There is no specified time frame that is always “right”. You don’t want to irritate the buyer because you are always checking in nor do you want to fall off the face of the planet. Check in occasionally – perhaps once per month with a marketing update, a product line extension, some current industry facts/trends that keep your buyer informed, and/or to offer a special promotion. If you have nothing of significance to share, consider a slightly longer lead-time of 6-8 weeks until you do have something noteworthy to share. That all said, when you first land the account and your product is just hitting store shelves, it is a good idea to either email the buyer or send a card thanking the buyer for their support (and to remind them of your existence).

Please read more here:

http://archive.constantcontact.com/fs193/1102552214220/archive/1112722613630.html#.UUTi4rPnknE.facebook

Yours truly (Romy) will appear on air this Friday, 3/1, on ABC’s hit show “Shark Tank” at 9pm PT/ET.

If you have not seen the teaser from last Friday’s episode, you may check it out here.

Some lessons re-affirmed from my Shark Tank experience: Don’t let fear or doubt get the best of you. Stay true to yourself and your business. The only way to score is to take a shot.

Of course I am not going to give away any spoilers! So, tune in. And, after tuning in, I would love your support via social media. Shout outs are encouraged on Psi Bands’ Facebook page and on twitter Add the hash tag: #SharkTank. Shout outs are particularly welcome during/immediately following the broadcast: 9 p.m. ET/PT.

Join Vanessa and me in person!
Vanessa and I are both attending Spark & Hustle in San Francisco on April 15-16. I will be a speaker and Vanessa and I will both have a table during lunch where you can meet with us.

Vanessa is attending Spark & Hustle in Los Angeles on April 4/8-4/9 where she will be a speaker.

I will be attending Savor the Success’ Rock the World event in New York on 5/8-5/9.

I highly recommend that you DO sign up to attend one or more of these events! Sitting on the fence won’t get you there. When you sign up, please let them know I referred you.

By Vanessa Ting

Don’t wait until your product is finished before telling your buyer you have new products in the pipeline. Take your buyer along as a partner during the development cycle. Get his/her feedback on the product positioning, packaging, pricing and styles before you place the first production order. Show your buyer a prototype – whether it is a CAD or mock-up. See if they are excited, lukewarm or hate it. And then find out why. (Tip: Buyerly.com is a resource for doing “market research” with retail buyers.)

Getting buyers on board earlier makes the subsequent sell-in process much easier since they have advised which changes would excite them and make your product “retail ready” in their stores. And I guarantee you that the idea you developed will have overlooked something critical to buyers.

I get the following question a lot. But what if they steal my idea? First of all, if you are already a vendor of theirs, they won’t steal it. Second of all, which scenario is better:

1. Protect an idea from outsiders so much that you fail to strengthen the idea and launch a mediocre product.
2. Get feedback from buyers and feel confident in its market viability and know that buyers have given it their stamp of approval before you spend tens of thousands of dollars on development.

If you answered #2, you are savvy and understand how to evaluate risk.

Let’s be honest. It is unlikely you are the first one to have ever thought of that specific product idea. Everyone has ideas, but what separates everyone from you is EXECUTION. Not everyone executes on their ideas. They are risk-averse, don’t have the money, unmotivated, etc – fact is, only a small percentage of people’s ideas make it to market. For those who do take action, they execute that product idea in different ways. There are so many decisions along the path that alter how your product will be in final form. So while five companies may have the same idea (look at the Cosmetics aisle, every brand has similar products), what differentiates the ideas is how they are executed in packaging, pricing, brand, benefits, etc. So to make sure your new product idea is well-executed and distinct, get the buyers input early on to help you outperform your competitors. And the buyers will appreciate the heads-up on what is coming down the pipeline so they can begin thinking and planning how they will capitalize on this new product launch. Win-win.