Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Small Business BC Retail Distribution-18Apr2013

970 views

Published on

Have you developed a product that you are ready to distribute to the retail market but not sure where to start?

Attend this seminar and let Gerry Spitzner use his 40 years of retail experience to help you plan your sales strategy with potential retailers.

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.

Published in: Marketing, Business, Technology
  • Be the first to comment

Small Business BC Retail Distribution-18Apr2013

  1. 1. Small Business BC Gerry Spitzner | retailSOS.ca April 18, 2013
  2. 2.  Thoughtstarters  Purchasing methods  Distribution  Product  Preparation  Presentation retailSOS.ca | Gerry Spitzner 2
  3. 3.    Help you with insights for creating, engaging and keeping your customer. Inputs, outputs and outcomes for your business plan and your sales/marketing plan. Answer your questions. retailSOS.ca | Gerry Spitzner 3
  4. 4.  Why they buy  How to approach retailers  What buyers look for in suppliers  What buyers look for in a product  Retail pricing and merchandising  Retail distribution and logistics channels  Your sales and marketing plan retailSOS.ca | Gerry Spitzner 4
  5. 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 retailSOS.ca | Gerry Spitzner 5
  6. 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 retailSOS.ca | Gerry Spitzner 6
  7. 7.  EDI = Electronic Data Interchange  EFT = Electronic Funds Transfer  EDLP = Everyday Low Pricing  OTB = Open-to-Buy  POG = Plan-o-gram  RDA = Retail Display Allowance retailSOS.ca | Gerry Spitzner 7
  8. 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. retailSOS.ca | Gerry Spitzner 8
  9. 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 for me? And repeat. retailSOS.ca | Gerry Spitzner 9
  10. 10.  What‟s the difference between your customers and your consumers ? retailSOS.ca | Gerry Spitzner 10
  11. 11.    How to sell or why retailers buy; which do you prefer to learn? Who are people more likely to believe; themselves or you? Who is better at closing the sale; your potential retail customer or you? retailSOS.ca | Gerry Spitzner 11
  12. 12.  Have you ever had buyers remorse? retailSOS.ca | Gerry Spitzner 12
  13. 13.  Show me the value; or I‟ll show you the door.  What is value in the 21st century? ◦ Value is 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. Develop your value proposition. ◦ Prospective customers should be able to visualize exactly what value you could bring their organization. retailSOS.ca | Gerry Spitzner 13
  14. 14. Taking a look at the initial purchasing process from the buyer‟s perspective offers invaluable insight to consider in your own selling process. retailSOS.ca | Gerry Spitzner 14
  15. 15.    Profit; make money or save time Want products that turn over at a price that will make them money They want to know the repeat purchase potential, and can it be replenished quickly and reliably. retailSOS.ca | Gerry Spitzner 15
  16. 16.  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 retailSOS.ca | Gerry Spitzner 16
  17. 17. Do you sometimes wish you could just read your buyer‟s mind? Ask; don‟t tell. Stop „selling‟ and help your customers buy. retailSOS.ca | Gerry Spitzner 17
  18. 18.  Top line sales and cash flow  Customer traffic  Customer profitability  Staff productivity  Return on investment; ROI retailSOS.ca | Gerry Spitzner 18
  19. 19.   Inventory is one of the top two controllable assets in the business. 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? ◦ What happens if I‟m stuck with it? retailSOS.ca | Gerry Spitzner 19
  20. 20.    Inventory is the retail gamble It‟s easy to turn cash into inventory...the challenge is to turn inventory into cash. Help me move it; and promote it. retailSOS.ca | Gerry Spitzner 20
  21. 21.  Make yourself irresistible to crazy-busy buyers and customers... retailSOS.ca | Gerry Spitzner 21
  22. 22.   Complexity and information overload brings them to a screeching halt. They subscribe to the “ If it ain‟t broke, don‟t fix it “ philosophy. retailSOS.ca | Gerry Spitzner 22
  23. 23.    They think making risky decisions is career inhibiting. Especially at chain retailers. Most of their options seem like near clones of one another. Not tolerant of stupidity or incompetence in other people. retailSOS.ca | Gerry Spitzner 23
  24. 24.  Make your presentation in terms of the retailer, your customer. retailSOS.ca | Gerry Spitzner 24
  25. 25.  How they benefit, how they profit, and how they produce will provide value. retailSOS.ca | Gerry Spitzner 25
  26. 26.  Focus on Challenges  Share Outcomes  Engage in Conversation  Suggest Next Steps retailSOS.ca | Gerry Spitzner 26
  27. 27.  Keep things simple  Demonstrate strong biz case  Minimize the risk  Prepare, prepare, prepare retailSOS.ca | Gerry Spitzner 27
  28. 28. 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. retailSOS.ca | Gerry Spitzner 28
  29. 29.  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. retailSOS.ca | Gerry Spitzner 29
  30. 30.  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? retailSOS.ca | Gerry Spitzner 30
  31. 31.  You need to know my customers.  I do.  Do your market research ahead of meeting me then ask me about my market & customers retailSOS.ca | Gerry Spitzner 31
  32. 32.    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. retailSOS.ca | Gerry Spitzner 32
  33. 33.    Can you replenish quickly; do you have a solid supply chain? Speed to market is 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. retailSOS.ca | Gerry Spitzner 33
  34. 34.  Objections and roadblocks ◦ Objections are signposts that lead you step-bystep 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 retailSOS.ca | Gerry Spitzner 34
  35. 35.  Shop the store ahead of time.  Understand 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. retailSOS.ca | Gerry Spitzner 35
  36. 36.  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. retailSOS.ca | Gerry Spitzner 36
  37. 37. What you say and how you deliver your “pitch” will make all the difference... retailSOS.ca | Gerry Spitzner 37
  38. 38.  Where else are you selling this product? ◦ What makes it sell? ◦ What problem does it solve?  I need 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? retailSOS.ca | Gerry Spitzner 38
  39. 39.  Is there a need or a market?  Or both?  A need alone does not = a market; desire does.  Desire is the sweet spot where the market is. retailSOS.ca | Gerry Spitzner 39
  40. 40.  Push or pull product?  What is the barrier to entry?  Is your product future proof?  What is the life cycle of product? retailSOS.ca | Gerry Spitzner 40
  41. 41.   Taste, health, ingredients, appearance, susta inability, 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. retailSOS.ca | Gerry Spitzner 41
  42. 42.  Must be easily understood by store staff and consumers.  How & Who will educate my customers?  What retail price can I get for this product? retailSOS.ca | Gerry Spitzner 42
  43. 43.   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?  Will it add to my average sale per customer? retailSOS.ca | Gerry Spitzner 43
  44. 44.   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. retailSOS.ca | Gerry Spitzner 44
  45. 45. Setting the right price for your products and services requires balancing merchandising, pricing, placement , packaging, and promotion. retailSOS.ca | Gerry Spitzner 45
  46. 46.  Know your competition  Do not compromise on your price  Know your taxes; HST to PST/GST  Wholesaler upcharges  Brokers fees  Include all your costs retailSOS.ca | Gerry Spitzner 46
  47. 47.   Mark up & margin. What‟s the difference? All of these terms are often confused in the conversation... ◦ Gross profit percent; GP% ◦ Gross profit dollars; GP$ ◦ Gross margin percent; GM% ◦ Gross margin dollars; GM$ retailSOS.ca | Gerry Spitzner 47
  48. 48.  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 retailSOS.ca | Gerry Spitzner 48
  49. 49.  Plan-o-grams & compliance  Package size/dimensions  Photos  UPC code  UPC code that stays on package  Packaging is effective and worthy of shelf space retailSOS.ca | Gerry Spitzner 49
  50. 50. Retail distribution channels consist of some combination of producers or manufacturers, agents or brokers, wholesalers or distributors, transportation, impor ters, and retailers. retailSOS.ca | Gerry Spitzner 50
  51. 51.  Three main supply chain channels... ◦ What is your cost to ship to your customer?  Wholesalers  Direct Store Delivery; DSD  Self Distributors; Chain retailSOS.ca | Gerry Spitzner 51
  52. 52.  Department stores  Mass & Big Box  Specialty & Discount  Catalogue & Internet  Grocery & Drug Stores  Convenience stores retailSOS.ca | Gerry Spitzner 52
  53. 53.  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? retailSOS.ca | Gerry Spitzner 53
  54. 54.  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? retailSOS.ca | Gerry Spitzner 54
  55. 55.  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. retailSOS.ca | Gerry Spitzner 55
  56. 56. 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. retailSOS.ca | Gerry Spitzner 56
  57. 57.  Endure long receivable cycle  Provide dating  Provide prompt pay discount  Payment by credit card  Even risk not being paid retailSOS.ca | Gerry Spitzner 57
  58. 58.  Provide a listing allowance  Prepay freight; delivery to door  Clear up damages and returns  Have a plan for recall  Sign a vendor agreement retailSOS.ca | Gerry Spitzner 58
  59. 59.  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 retailSOS.ca | Gerry Spitzner 59
  60. 60.    There is a stumbling block...for importers. National chain retailers have their own import department. Why do they need you? retailSOS.ca | Gerry Spitzner 60
  61. 61. Now what or what now? … Your outlook is a matter of your positive attitude and willingness to help. retailSOS.ca | Gerry Spitzner 61
  62. 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 retailSOS.ca | Gerry Spitzner 62
  63. 63.  How can you?...  Help them make money  Save them time  Make them feel safe  Make them feel special retailSOS.ca | Gerry Spitzner 63
  64. 64.    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 retailSOS.ca | Gerry Spitzner 64
  65. 65.    Just because you are new, doesn‟t mean you are not worth the chance. Retailers need new mix to create, engage and keep customers. Increase impulse sales and profit. retailSOS.ca | Gerry Spitzner 65
  66. 66.   Decide first if you want to approach IND‟s, banner or chain retailers. Then determine your exact ideal retail customer and method of distribution. retailSOS.ca | Gerry Spitzner 66
  67. 67.   Start a sales & marketing plan as a blueprint. Understand your target market, ideal customer and consumer buying motivators. ◦ Retailer (your customer) and end consumers  Who, what, where, how and why? retailSOS.ca | Gerry Spitzner 67
  68. 68.   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 retailers table. retailSOS.ca | Gerry Spitzner 68
  69. 69.  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! retailSOS.ca | Gerry Spitzner 69
  70. 70.  Your evaluation is appreciated...  Want a copy of this presentation with my speakers notes?  E-mail me; gerry@retailSOS.ca retailSOS.ca | Gerry Spitzner 70
  71. 71.  Follow Twitter: @passion4retail  Connect LinkedIn: Gerry Spitzner  Web: retailSOS.ca  Blog: gerryspitzner.com  Email: gerry@retailsos.ca  Online Biz Card: gerryspitzner.tel  Online Biz Card: retailSOS.tel retailSOS.ca | Gerry Spitzner 71
  72. 72.  Gerry Spitzner is an optimist with a natural "kid-like“ curiosity for improving life and business results. He believes in a bright future and our ability to build it together. Drawing on 35+ years experience in multi-site retail retail operations, store ownership and the wholesale supplychain; Gerry brings the leadership, knowledge and market awareness of business development to retail owners helping them achieve growth objectives. He teaches and inspires them to achieve results by aligning their vision with marketing strategy and operational execution. Fascinated with a lifelong curiosity for why customers buy and a passion for retail; Gerry guides leaders and organizations to create, engage and keep great customers by delivering the promise of an extraordinary customer experience. He has devoted his life to sharing his thinking with other retail leaders to manage market analysis and build business plans that increase profitability and create competitive advantage with systems to implement. His company is retailSOS.ca, a Vancouver-based business management consultancy with a suite of outsourced business services to support retail owners starting, buying or strategically realigning their business. With a clear understanding of the business of retailing he uses a solution oriented focus with ideas and alternatives that clients can use to address the changing marketplace issues they face right now. Gerry understands who they are, what they need, and where to find it, helping them market and strategically realign their services to integrate the business activities for optimal growth outcomes through customer experience. retailSOS.ca | Gerry Spitzner 72
  73. 73.  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) vancouver bc* retailSOS.ca | Gerry Spitzner 73
  74. 74.  WalMart Vendor agreement:  http://www.walmartstores.com/Suppliers/248.aspx  Canadian Tire vendor agreement:      http://corp.canadiantire.ca/EN/JoinOurTeam/Suppliers/Pages/SupplierRequirem ents.aspx Target vendor agreement: http://img1.targetimg1.com/wcsstore/marketing/ca/company/images/canada/p df/Vendor_Online_Agreement.pdf Home Depot vendor agreement: https://homedepotlink.homedepot.com/enus/Related%20Documents/Canada%20Supplier%20Terms%20and%20Conditions 02-04.pdf retailSOS.ca | Gerry Spitzner 74
  75. 75.  For QR codes: www.qrstuff.com For bar code info; www.gs1ca.org  Retail associations:    Retail Council of Canada: www.retailcouncil.org NRF - National Retail Federation; Global retail http://www.nrf.com/ retailSOS.ca | Gerry Spitzner 75
  76. 76.  Sales & Marketing ◦ http://www.raintoday.com  Sales help and power questions ◦ http://www.gitomer.com/salesHelp/Sales-Help.html  Sales and personal development ◦ http://www.briantracy.com  Sales strategy and value propositions ◦ http://www.jillkonrath.com/ retailSOS.ca | Gerry Spitzner 76
  77. 77.  Trends: www.trendhunter.com  Trends: www.springwise.com  Trends: www.trendwatching.com   Pricing and margin definition: http://en.wikipedia.org/wiki/Gross_margin Retail, sales & marketing and small business: www.retailwire.com retailSOS.ca | Gerry Spitzner 77
  78. 78.   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 retailSOS.ca | Gerry Spitzner 78

×