Have you developed a product that you are ready to distribute to retail market but not sure where to start?
Learning Objectives:
• Discover how to structure sales calls to retailers, with the best results.
• Understand the methods retailers use to decide what products they will buy for their stores.
• Find out the common challenges retailers face; how and why they buy.
• Uncover the cardinal rules you should follow when making your first sales pitch to a prospective client
• Learn the terminology, technology and measurements retailers use to decide which products will make the cut.
• Find out how merchandising and pricing works in both chain and independent retailers.
• Discover the logistics and supply chain systems of getting products to the retailers’ door.
3. Insights for creating, engaging and
keeping your customer
Inputs and considerations to your
business plan
Your questions
Anything you would like to cover?
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4. How to approach retailers
Why and how they buy
What buyers look for in suppliers
What buyers look for in a product
Pricing and merchandising
Retail distribution channels
Your sales and marketing plan
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5. POS = point of sale
POP = point of purchase
WMS = warehouse mgmt system
SKU = stock keeping unit
MOM = minimum order multiple
CPG = consumer package good
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6. IND = independent retailer
UPC = universal product code
QR = quick response code
PO = purchase order
GMROI = Gross Margin Return On Investment
CRM = Customer Relationship Management
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8. This packet of thought starters is
just that; a starting point. Let your
mind wander and consider what you
can do to help retailers minimize
risks and maximize profitability.
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9. The 4 P’s of marketing
◦ Product, Price, Place and Position
7 P formula for marketing success
◦ Promotion, Productivity and “Profit-unities”
How will this product generate
incremental sales? And repeat.
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10. What’s the difference between your
customers and your consumers ?
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11. How to sell or why retailers buy; which do
you prefer to learn?
Whoare people more likely to believe;
themselves or you?
Who is better at closing the sale; the
potential retail customer or you?
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12. Have you ever had buyers remorse?
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13. Show me the value; or I’ll show you the
door.
What is value in the 21st century?
◦ A function of the bundle of perceived benefits
offered at a given price.
◦ Sell the applied benefits of the benefit you and
your product offer.
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14. Do you sometimes wish you could
just read your buyer’s mind?
Ask; don’t tell.
Stop ‘selling’ and help your
customers buy.
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15. Top line sales and cash flow
Customer traffic
Customer profitability
Staff productivity
Return on investment; ROI
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16. Do we really need that?
◦ does your product fit my current market mix,
◦ do I have the space to merchandise it,
◦ do I have the cash flow (money) to pay for it?
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17. Inventory is the retail gamble
It’s easy to turn cash into inventory...the
challenge is to turn inventory into cash.
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18. Make yourself irresistible to crazy-busy
customers
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19. Complexity brings them to a screeching
halt
They subscribe to the “ If it ain’t broke,
don’t fix it “ philosophy
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20. They think making risky decisions is
career inhibiting
Most of their options seem like near
clones of one another
Not tolerant of stupidity or
incompetence in other people.
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21. Make your presentation in terms of the
retailer, your customer.
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22. How they benefit, how they profit, and
how they produce will provide value.
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23. Keep things simple
Demonstrate strong biz case
Minimize the risk
Prepare, prepare, prepare
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24. Taking a look at the initial
purchasing process from the buyer’s
perspective offers invaluable
insight to consider in your own
selling process.
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25. Profit; make money or save time
Want products that turn over at a price
that will make them money
Theywant to know the repeat purchase
potential, and can it be replenished
quickly and reliably.
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26. How can I keep my customers in the
store longer?
◦ Increases the average sale per customer
Look at products through the eyes of
consumers to meet leading trends
◦ Increased impulse sales = increased average sale
per customer
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27. In addition to mentally preparing for
the meeting, here's a list of some of
the things a retail buyer may expect
to see at your presentation.
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28. What your biz background is
Your Financial means
Number of years in business
Geographical limitations
◦ What area can you physically cover and ship to?
Always remember while you are qualifying
them; they are qualifying you. Know, like, trust.
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29. Do not expect the retail buyer to know
everything about the product category.
◦ Come in with some facts & market research.
◦ Sales trends in the category, consumer research.
◦ Trend watching; help me with what’s hot.
◦ Tell me about something new or up and coming.
◦ What’s happening in the marketplace?
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30. You need to know my customers.
I do.
Do your market research ahead of
meeting me and then ask me.
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31. I need to know your Advertising and
promotions plan.
How you are going to educate my
customers about your product and get
them to try it in my store?
I don't have these answers for your
product, you do. Or you should.
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32. Can you replenish quickly; do you have a
solid supply chain?
Speed to market just as important (if not
MORE important) than the shelf price or
cost of an item.
Your supply chain to the MFR. becomes part
of my supply chain and I care what it is.
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33. Objections and roadblocks
◦ Objections are signposts that lead you step-by-
step toward closing the sale.
Understand your customers situation
◦ Help me move product and make money; frame
your sale this way.
◦ The buyer is dealing with limited shelf space
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34. Shop the store ahead of time
Understand the strategic positioning of
the store
Keep things simple; make your
presentation short and snappy
Don’t show everything you have at once.
Too many choices confuses the buyer.
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35. The answer is no...
If they feel pressure from you,
If they feel like you're trying too hard to be liked,
If they don't think you understand their business,
If they think you’re focused on what’s in it for you,
If they get overwhelmed by what you're saying.
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36. What you say and how you deliver
your “pitch” will make all the
difference...
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37. Where else are you selling this product?
◦ What makes it sell?
◦ What problem does it solve?
Ineed to know why your product will be
wanted by my customers.
◦ Is there a “market match” to my market?
◦ What does it ultimately help my customers
achieve?
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38. Is there a need or a market?
Or both?
A need alone does not = a market;
Desire does
And desire is the sweet spot where the
market is.
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39. Push or pull product?
What is the barrier to entry?
Is your product future proof?
What is the life cycle of product?
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40. Taste,
health, ingredients, appearance,
sustainability, preparation, packaging,
customer value...etc etc.
All buyers do things for their own
reasons, figure out what the buyer wants
and then provide it for them.
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41. A retailer’s shelf space is their
commodity.
Add interest and ‘excitement’ to their
stores with new products and value.
Will this item make my store more
appealing?
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42. Mustbe easily understood by store staff
and consumers.
How & Who will educate my customers?
What retail price can I get for this
product?
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43. The retail pricing approach depends on
the product and the buyer.
Some look at product first;
◦ then see if they can ‘carry’ the price
Others look at cost first;
◦ they are judging what the selling price would be
and if a fit to their market or match in a category.
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44. Setting the right price for your
products and services requires
balancing merchandising, pricing,
placement, packaging, and
promotion.
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45. Know your competition
Do not compromise on your price
Know your taxes; HST to PST/GST
Wholesaler upcharges
Brokers fees
Include all your costs
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46. Mark up & margin. What’s the difference?
All of these terms can get confused in
the conversation.
◦ Gross profit percent; GP%
◦ Gross profit dollars; GP$
◦ Gross margin percent; GM%
◦ Gross margin dollars; GM$
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47. Tamper proof packaging
Display racks and trays
Display packages with a window
Off shelf areas for new mix
Must fit on shelf in section or category it
is going to be merchandised in
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48. Plan-o-grams & compliance
Package size/dimensions
Photos
UPC code
UPC code that stays on package
Packaging is effective and worthy of
shelf space
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49. Retail distribution channels consist
of some combination of producers
or manufacturers, agents or brokers,
wholesalers or distributors,
transportation, importers, and
retailers.
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50. Three main supply chain channels...
◦ What is your cost to ship to your customer?
Wholesalers
Direct Store Delivery; DSD
Self Distributors; Chain
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51. Department stores
Mass & Big Box
Specialty & Discount
Catalogue & Internet
Grocery & Drug Stores
Convenience stores
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52. Within each retail category; 3 types
◦ Chain
◦ Banner stores
◦ Independent stores
Who exactly is your ideal customer?
◦ Who is your end consumer?
◦ Where and why does he or she buy?
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53. Is the product WMS friendly?
Case and product UPC
Dealing with concealed damages
Case pack; smaller MOM’s?
Logistics or transportation charges; how
are they determined?
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54. Consider using a professional agent,
broker or wholesaler.
◦ When you don’t have your own sales team or sales
is not your strong point .
◦ There is a cost; however they have connections
and already established relationships.
◦ Some wholesalers have their own sales dept. that
you may be able to “tap into” for representation.
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55. A successful marketing plan doesn't
have to be complex or lengthy, but
should contain enough information
to help you establish, direct and
coordinate your marketing efforts.
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56. Endure long receivable cycle
Provide dating
Provide prompt pay discount
Payment by credit card
Even risk not being paid
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57. Provide a listing allowance
Prepay freight; delivery to door
Clear up damages and returns
Have a plan for recall
Sign a vendor agreement
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58. Use a wholesaler or broker that specializes
in your product category
Referrals are the way to go
Value in a short term incentive
Becoming the retailer & go online
The use of online business media
Carefully consider consignment
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59. There is a stumbling block...for
importers.
National chain retailers have their own
import department.
Why do they need you?
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60. Now what or what now? …
Your outlook is a matter of your
positive attitude and willingness
to help.
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61. How can you?...
Help them make money
Save them time
Make them feel safe
Make them feel special
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62. Confidence is the #1 factor
◦ in determining what, from who and where retailers buy...
quality is #2,
service is #3
selection is #4
and price is #5
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63. The approach to IND’s and Banners is
different than approach to chain...
Chain retailers like to act like small
retailers
IND and Banner retailers look for
products not in chains
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64. Just because you are new, doesn’t mean
you are not worth the chance.
Retailersneed new mix to create,
engage and keep customers.
Increase impulse sales and profit
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65. Decide first if you want to approach IND’s,
banner or chain retailers.
Then determine your exact ideal retail
customer and method of distribution.
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66. Start a sales & marketing plan.
Understand your target market and it’s
buying motivators.
◦ Retailer (your customer) and end consumers
Who, what, where, how and why?
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67. Define your unique value proposition
and keep it current.
Focus on benefits not just features.
◦ Value is the bundle of perceived benefits offered at
a given price.
◦ Consider the applied benefits of the benefit.
◦ Your UVP should include what you bring to the
table.
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68. Retailers are looking for new products to
differentiate their stores...
◦ They don’t have time to find them;
◦ They need you to help them find the
products and then help them “move” the
inventory...
This is your opportunity!
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69. Your evaluation is appreciated...
Want a copy of this presentation with my
speakers notes?
E-mail me; gerry@retailSOS.ca
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71. retailSOS.ca is a Vancouver-based retail consultancy guiding
small business owners to create, engage and keep great
customers by doing the right thing really well.
Gerry Spitzner works as a management consultant
supporting retail and small business owners to achieve
results by aligning their vision and implementing marketing
strategy with operational execution.
Drawing on 35+ years experience in multi-site retail
operations, independent store ownership and the wholesale
supply-chain; Gerry brings the leadership, knowledge and
market awareness of ownership and business development
to retail and small business owners to achieve growth
objectives.
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72. For mfr agents info:
http://www.cylex.ca/vancouver/manufacturers%
20agents%20representatives.html
For list of mfr agents; Google key words;
*manufacturers agents vancouver bc*; or *{food
brokers} vancouver bc*
For wholesalers; use Google key words;
*wholesale (your product category i.e. clothing)
vancouver bc*
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74. For QR codes: www.qrstuff.com
For bar code info; www.gs1ca.org
Retail associations:
Shelfspace - The Association for Independent
Retailers http://www.shelfspace.ca/
Retail Council of Canada: www.retailcouncil.org
NRF - National Retail Federation; Global retail
http://www.nrf.com/
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75. Sales questions: www.gitomer.com
Sales and personal development:
www.briantracy.com
Retail, sales & marketing and small
business: www.donaldcooper.com
Retail, sales & marketing and small
business: www.retailwire.com
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77. Little Red Book of Selling; by Jeffrey Gitomer
The Sales Bible; by Jeffrey Gitomer
www.gitomer.com
Be Different or Be Dead; by Roy Osing
www.bedifferentorbedead.com
Unmarketing: by Scott Stratten
www.unmarketing.com
Enchantment: by Guy Kawasaki
www.guykawasaki.com/enchantment
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