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Small Business BC-retail distribution-09oct2012


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Workshop/seminar on moving your product line to retail market. Designed for importers and suppliers on how to approach retailers, methods retailers use to list products, and an overview of the logistics and retail supply chain. Updated Oct2012.

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Small Business BC-retail distribution-09oct2012

  1. 1. Small Business BC Gerry Spitzner | Find me: October 9, 2012
  2. 2.  Thoughtstarters Purchasing methods Distribution Product Preparation | Gerry Spitzner 2
  3. 3.  Insights for creating, engaging and keeping your customer Your sales & marketing plan Your questions How can I be of service to you… right now? | Gerry Spitzner 3
  4. 4.  How to approach retailers Why and how they buy Retail distribution channels What buyers look for in a supplier What buyers look for in a product | Gerry Spitzner 4
  5. 5.  AR = Accounts Receivable POS = point of sale POP = point of purchase WMS = warehouse mgmt system SKU = stock keeping unit MOM = minimum order multiple CPG = consumer package good | 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 | Gerry Spitzner 6
  7. 7.  DSD = Direct Store Distribution EDI = Electronic Data Interchange EDLP = Everyday Low Pricing OTB = Open-to-Buy POG = Plan-o-gram RDA = Retail Display Allowance | Gerry Spitzner 7
  8. 8. This packet of thought starters isjust that; a starting point. Let yourmind wander and consider what youcan do to help retailers minimizerisks and maximize profitability. | Gerry Spitzner 8
  9. 9.  The 4 P’s of marketing ◦ Product, price, place & position 7 P formula for marketing success ◦ Promotion, productivity and “Profit-unities” How will this product generate incremental sales? | Gerry Spitzner 9
  10. 10.  What’s the difference between your customers and your consumers ? | Gerry Spitzner 10
  11. 11.  Howto sell or why retailers buy; which do you prefer to learn? Who are people more likely to believe; themselves or you? | Gerry Spitzner 11
  12. 12.  Ever had buyers remorse? | Gerry Spitzner 12
  13. 13.  Show me the value; or I’ll show you the door.◦ Definition of Value: is a function of the bundle of perceived benefits offered at a given price. | Gerry Spitzner 13
  14. 14. Do you sometimes wish you couldjust read your buyer’s mind? | Gerry Spitzner 14
  15. 15.  Top line sales and cash flow Customer traffic Customer profitability Staff productivity Return on investment; ROI | Gerry Spitzner 15
  16. 16.  Do we really need that? | Gerry Spitzner 16
  17. 17.  Inventory is the retail gamble Help me move it; and promote it. | Gerry Spitzner 17
  18. 18.  Make yourself irresistible to crazy-busy customers | Gerry Spitzner 18
  19. 19.  Complexity brings them to a screeching halt They subscribe to the “ If it ain’t broke, don’t fix it “ philosophy | Gerry Spitzner 19
  20. 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. | Gerry Spitzner 20
  21. 21.  Keep things simple Demonstrate strong biz case Minimize the risk Prepare, prepare, prepare | Gerry Spitzner 21
  22. 22.  Make your presentation in terms of the customer. | Gerry Spitzner 22
  23. 23.  How they benefit, how they profit, and how they produce will provide value. | Gerry Spitzner 23
  24. 24. Taking a look at the initialpurchasing process from the buyer’sperspective offers invaluableinsight to consider in your ownselling process. | Gerry Spitzner 24
  25. 25.  Profit; make money or save time Want to find something (new) that turns over at a price that will make them money | Gerry Spitzner 25
  26. 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 = increase average sale/customer | Gerry Spitzner 26
  27. 27.  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. | Gerry Spitzner 27
  28. 28.  Trend watching; help me with what’s hot. Tell me about something new or up and coming. | Gerry Spitzner 28
  29. 29.  You need to know my customers. I do. Ask me. | Gerry Spitzner 29
  30. 30. Ineed to know your Advertising and promotions plan. Howyou are going to educate my customers about your product and get them to try it in my store? | Gerry Spitzner 30
  31. 31.  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. | Gerry Spitzner 31
  32. 32.  Shop the store ahead of time Understand the strategic positioning of the store Keep things simple; make your presentation short and snappy | Gerry Spitzner 32
  33. 33.  Objections and roadblocks Understand customers situation Help me move product and make money; frame your sale this way. | Gerry Spitzner 33
  34. 34.  The answer is no... If they feel pressure from you, If they feel like youre trying too hard to be liked, If they dont think you understand their business, If they get overwhelmed by what youre saying. | Gerry Spitzner 34
  35. 35. Retail distribution channels consistof some combination of producersor manufacturers, agents or brokers,wholesalers or distributors,transportation, importers, andretailers. | Gerry Spitzner 35
  36. 36.  3 Main supply chain channels... ◦ What is your cost to ship to your customer? Wholesalers DSD; ( Direct Store Delivery ) Chain; Self Distributors | Gerry Spitzner 36
  37. 37.  Department stores Mass & Big Box Specialty & Discount Catalogue & Internet Grocery & Drug Stores Convenience stores | Gerry Spitzner 37
  38. 38.  Within each category; 3 types Chain Banner stores Independent stores | Gerry Spitzner 38
  39. 39.  Is the product WMS friendly? Case and product UPC Dealing with concealed damages Case pack; smaller MOM’s? | Gerry Spitzner 39
  40. 40.  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 | Gerry Spitzner 40
  41. 41. What you say and how you deliveryour “pitch” will make all thedifference... | Gerry Spitzner 41
  42. 42.  Where else are you selling this product? ◦ What makes it sell?Ineed to know why your product will be wanted by my customers. ◦ Is there a “market match”? | Gerry Spitzner 42
  43. 43.  Is there a need or a market? Or both? A need alone does not = a market; desire does | Gerry Spitzner 43
  44. 44.  Push or pull product? Is your product future proof? What is the life cycle of product? | Gerry Spitzner 44
  45. 45.  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 | Gerry Spitzner 45
  46. 46.  Look for items that are different; not the same; uniqueness Must be easily understood by store staff and consumers | Gerry Spitzner 46
  47. 47.  Add interest and excitement to their stores with new products What retail price can I get for this product? | Gerry Spitzner 47
  48. 48.  Some look at product first; ◦ then see if they can ‘carry’ the price Others look at cost first; ◦ they are judging the selling price and then a product to fit or match | Gerry Spitzner 48
  49. 49. Setting the right price for yourproducts and services requiresbalancing merchandising, pricing,placement, packaging, andpromotion. | Gerry Spitzner 49
  50. 50.  Do not compromise on your price Know your competition Know your taxes Wholesaler upcharges Brokers fees Include all your costs | Gerry Spitzner 50
  51. 51.  Mark up and margin Gross profit percent; GP% Gross profit dollars; GP$ Gross margin percent; GM% Gross margin dollars; GM$ | Gerry Spitzner 51
  52. 52.  Tamper proof packaging UPC code that stays on package Display racks and trays Display packages with a window Off shelf areas for new mix | Gerry Spitzner 52
  53. 53.  Plan-o-grams & compliance Package size/dimensions Photos Must fit on a shelf in the section or category it is merchandised in | Gerry Spitzner 53
  54. 54. A successful marketing plan doesnthave to be complex or lengthy, butshould contain enough informationto help you establish, direct andcoordinate your marketing efforts. | Gerry Spitzner 54
  55. 55.  Endure long receivable cycle Provide dating Provide prompt pay discount Payment by credit card Even risk not being paid | Gerry Spitzner 55
  56. 56.  Provide a listing allowance Prepay freight; delivery to door Clear up damages and returns Have a plan for recall Sign a vendor agreement | Gerry Spitzner 56
  57. 57.  Use a wholesaler or broker that specializes in your product Referrals are the way to go Value in a short term incentive | Gerry Spitzner 57
  58. 58.  Becoming the retailer & go online The use of online business media Carefully consider consignment | Gerry Spitzner 58
  59. 59.  National chain retailers have their own import department Why do they need you? | Gerry Spitzner 59
  60. 60. Now what or what now? …Your outlook is a matter of yourpositive attitude and willingnessto help. | Gerry Spitzner 60
  61. 61.  Retailers need new mix to create, engage and keep customers. Increase impulse sales and profit | Gerry Spitzner 61
  62. 62.  Chain retailers like to act like small retailers IND retailers look for unique products not in chains | Gerry Spitzner 62
  63. 63.  How can you?... Help them make money Save them time Make them feel safe Make them feel special | Gerry Spitzner 63
  64. 64.  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 | Gerry Spitzner 64
  65. 65.  Retailers are looking for new products to differentiate their stores... They don’t have time to find them; this is your opportunity! | Gerry Spitzner 65
  66. 66.  Decide first if you want to approach IND’s or chain retailers. Then determine your exact ideal retail customer and method of distribution. | Gerry Spitzner 66
  67. 67.  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? | 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 | Gerry Spitzner 68
  69. 69.  Your evaluation is appreciated Want a copy of this presentation with my speakers notes? E-mail me; | Gerry Spitzner 69
  70. 70.  Follow Twitter: @passion4retail Connect LinkedIn: Gerry Spitzner Web: Blog: Email: Online Biz Card: Online Biz Card: | Gerry Spitzner 70
  71. 71.  is a Vancouver-based retail consultancy guiding small business owners to create, engage and retain great customers by doing the right thing extraordinarily 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 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. | Gerry Spitzner 71
  72. 72.  For mfr agents info: rs%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* | Gerry Spitzner 72
  73. 73.  WalMart Vendor agreement: Canadian Tire vendor agreement: erRequirements.aspx Target vendor agreement: s/canada/pdf/Vendor_Online_Agreement.pdf Home Depot vendor agreement: us/Related%20Documents/Canada%20Supplier%20Terms%20and%2 0Conditions02-04.pdf | Gerry Spitzner 73
  74. 74.  For QR codes: For bar code info; Retail associations: Shelfspace: Retail Council of Canada: | Gerry Spitzner 74
  75. 75.  Sales questions: Sales and personal development: Retail, sales & marketing and small business: Retail, sales & marketing and small business: | Gerry Spitzner 75
  76. 76.  Sales & Marketing: Trends: Trends: Trends: Pricing and margin definition: | Gerry Spitzner 76
  77. 77.  Little Red Book of Selling; by Jeffrey Gitomer The Sales Bible; by Jeffrey Gitomer Be Different or Be Dead; by Roy Osing Unmarketing: by Scott Stratten Enchantment: by Guy Kawasaki | Gerry Spitzner 77