Author Topic: taking a product to a store front  (Read 1800 times)

ambimammular

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taking a product to a store front
« on: June 21, 2017, 12:12:17 PM »
Hey folks,

I make small boutique-ish items that I've been trying to sell on Etsy. But honestly, I think they're more the type of thing that someone will see in a basket at a store, that they'll want to pick up. They're not the sort of thing you need or search for.

I'd like to make up a proposition for the store owner. Is there a website or a book that would help me figure out how to market it to a store as a new product? I'd like to go in looking like I know what I'm talking about, instead of bumbling about and letting them set the terms.

Is this something I'd learn in a business class?

SC93

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Re: taking a product to a store front
« Reply #1 on: June 21, 2017, 08:55:20 PM »
It would be so great if there was an answer for you that ended in you making a lot of money from this but in reality, what you have is something cool but not a big seller. If you have a few extra dollars rent a booth at an outdoor event or a flea market. I said outdoor event first because if you put in some sweat and tears it might quickly sober you that this is cool but not a money maker. On the other hand, as far as Etsy goes, do they allow video? If so, make a video with it and see if that helps.

MrsDinero

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Re: taking a product to a store front
« Reply #2 on: June 22, 2017, 04:22:02 AM »
You need to figure out what your wholesale cost is because most retailers want a 2x (or more) markup from the wholesale cost.  There are a few different formulas that can help with this. 

1)Materials + Labor + Expenses + Profit = Wholesale x 2 = Retail

2) (Labor + Materials) x 2 = Wholesale x 2 = Retail

3) Materials + Labor = Item Cost x 2.2 = Wholesale x 2.2 = Retail

4) (Materials x 3) + Labor = Wholesale x 2 = Retail


CargoBiker

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Re: taking a product to a store front
« Reply #3 on: June 25, 2017, 11:08:38 PM »
Hey folks,

I make small boutique-ish items that I've been trying to sell on Etsy. But honestly, I think they're more the type of thing that someone will see in a basket at a store, that they'll want to pick up. They're not the sort of thing you need or search for.

I'd like to make up a proposition for the store owner. Is there a website or a book that would help me figure out how to market it to a store as a new product? I'd like to go in looking like I know what I'm talking about, instead of bumbling about and letting them set the terms.

Is this something I'd learn in a business class?

You don't need to go to business school.  You probably wouldn't even learn this there, haha.

Here's what you need:

1) A line of products to sell
2) A price sheet that has wholesale and suggested retail for each item. Generally, Retail is 2x wholesale price. And wholesale might be 2x your personal cost.
3) A "line sheet".  Google "line sheet example".
4) A display option - Spinner rack, hanging rack, end cap display... it really  just depends on the size and type of your product. B&M retailers will gladly give you a chance, if you have some sort of display they just attach somewhere at the end of the aisle, and you don't have to take up any shelf space.
5) attractive, retail-friendly packaging.

That's it.

Then use google or however to make a list of stores you want to reach out to.  Store owners are horrible at responding to cold contacts from brands (they're really busy), so try to follow up 4-5 times with each retailer before moving on.

I got started in wholesale, when I got randomly invited to a franchise owner's event in my niche to set up a vendor booth. The event was in 3 weeks, and so in 3 weeks, I put together all of the above. 

It's not hard, and it doesn't take a lot of time.  Just get to work, and figure it out as you go.  You'll learn a lot just by talking to store owners.
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savman

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Re: taking a product to a store front
« Reply #4 on: July 01, 2017, 12:05:46 PM »
Two questions for you Cargobiker:

1.) What payment terms do you generally approach the owner with? e.g. if you had an end cap of products do they buy the entire end cap on Net 30; pay you as they sell and re-order, etc?

2.) Sort of nebulous question I know, but using an end cap as an example again, what kind of monthly revenue numbers is a store owner looking for if they give you an end cap?  Surely it must boil down to a $/sq. ft. that justifies using the space.

Put another way, take a 3 or 4' wide end cap that is 4 - 5' tall...do you consider $500/month wholesale per location successful? $1000; $5000?  Trying to get a frame of reference. Thx for any input.


ambimammular

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Re: taking a product to a store front
« Reply #5 on: July 01, 2017, 01:25:45 PM »
CargoBiker,

Thanks, This is just the sort of info I'm looking for. I need to do this before the end of the summer. There are two local stores that seem like the type to carry my items. Nervous and excited!!

CargoBiker

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Re: taking a product to a store front
« Reply #6 on: July 07, 2017, 09:46:20 PM »
Two questions for you Cargobiker:

1.) What payment terms do you generally approach the owner with? e.g. if you had an end cap of products do they buy the entire end cap on Net 30; pay you as they sell and re-order, etc?

I don't approach them with any terms. All CC payment up front.  If bigger stores will ask for net-30, I'll give it to them.  This really end up being like 35 days, as they like to mail the check on the last possible day.  The bigger the store, the more they'll try to get out of you. When you get to Huge B&M, then you're looking at buy-backs, damage/return percentage compensations, net-60-90 terms, etc. etc.  My products are not a good fit for huge B&M, so I don't have any experience here.

Quote
2.) Sort of nebulous question I know, but using an end cap as an example again, what kind of monthly revenue numbers is a store owner looking for if they give you an end cap?  Surely it must boil down to a $/sq. ft. that justifies using the space.

That's the thing about endcaps... is it doesn't really matter, as they can fit in a lot of places in the store. Shelf space is a hot commodity, especially in larger stores, and yes, they'll have they're profit per slot figured out. End caps give you a lot of flexibility. Depends on the product, the price, the display, the store, etc. 

Quote
Put another way, take a 3 or 4' wide end cap that is 4 - 5' tall...do you consider $500/month wholesale per location successful? $1000; $5000?  Trying to get a frame of reference. Thx for any input.

No idea man, totally depends on the price, size, sales volume of your products.  My products are tiny, and low priced ($20 retail),and a bit slow moving, and average stores will earn me around $200/mo in sales.
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CargoBiker

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Re: taking a product to a store front
« Reply #7 on: July 07, 2017, 09:47:38 PM »
CargoBiker,

Thanks, This is just the sort of info I'm looking for. I need to do this before the end of the summer. There are two local stores that seem like the type to carry my items. Nervous and excited!!

Go show them your product and ask if it was something they'd be interested in carrying, when it's packaged up nice and pretty.  You could do this tomorrow, and get a yes or no, before putting in the time.

I wouldn't really do this for any random store, but if you're local... why not?
Owner - Urban Tribe Cargo Bicycles

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Kids in Front | Wooden Cargo Box with 2 Benches | Electric Assist Motor | 3 Wheels

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