Manage new fulfillment method
You need to know many facts about working with big box stores, and working within their system, so don’t worry, here we will inform you in detail.
Many of the big box retailers have dealer guides. These things are like 200 pages of instructions for how they want to receive the goods, because these businesses are buying the product from hundreds, if not thousands, of different suppliers.
When they get a shipment in, they want it to look the same, no matter who it is from. They want the barcode written and positioned like one inch from the top right corner of each package so that they know exactly where the barcode is going to be when they get it
Working within the system would be a big shift (and challenge) for someone who is accustomed to shipping and fulfilling orders themselves.
Manage your cash flow
Cashflow is still going to be the backbone of your business, but it changes pretty dramatically as you go from a small store to dealing with big business. The most important thing to account for is the payment terms. A couple of these big-box retailers won’t pay you until 60 days after you’ve got the order. In the meantime, you’ve probably put all your money out 60 days before you deliver it to them, meaning you’ve been out for almost 120 days. Cashflow could be a challenge.
Also, a large order is excellent for volume, you should have to look again at your numbers when you’re operating the huge shipments. Your margins are smaller when you start dealing with a big box store, and you are now not getting paid for a longer period which means it is a very different game.
Target the right store
You completely need to invest your energy focusing on the right store. For example, would you like to offer discounts to retail establishments? Do you have got a high priced product or an average-priced product? Focus on the store’s needs and not your requirements.
Can you help them to drive their stores? You should know various approaches to convince the client that your item will make money for them. A look for the best retailer for your product begins with searching the stores for the same or related products. You can do some research on your nearby retail store locations to examine what types of products they have on their store shelves. Analyze which store is best for your product but keep in mind before it comes time to approach the store’s buyer, be ready with your presentation.
Prepare for increased production volume
A whole new retail market for your product will mean a whole new volume of production for you. Both you and the retail buyer need to know that you’re prepared to ramp up the numbers. And you need to know that your manufacturer can handle that volume while maintaining quality.
Getting production and delivery running smoothly isn’t only essential to customer relations, but to your business’s bottom line as well. However, your business’s bottom line is also the main concern. Some retail contracts will specify fees that penalize vendors for not getting the merchandise to them exactly on time.
Thoroughly assess your prospective market, start preparing for manufacturing, and take full benefit of current resources that will help you to develop your business. Your dream of seeing your product on a multiunit store’s shelves doesn’t have to remain a dream.
Make contact with a buyer
Call the client or manager who handles your type of product and decide when and how frequently they take a look at new products. Be sure to ask about their policies and procedures for carrying new products. If the client expresses an interest in meeting with you, set a time for a presentation.
Some companies have monthly, quarterly, or annual open vendor days, where prospective vendors can schedule appointments for a 30-minute meeting to present their merchandise. In most instances, that’s if the meeting goes well and they want to do business with you, and vendors are expected to be able to supply the chains with the product within 30 days of the meeting.
Always be ready for the presentation
Ensure your paper ducks are all in a row earlier when you have a meeting with the client. Familiarize yourself with the industry-standard terms such as conditions of sale, credit score, discount rate, shipping, and allowances.
You have to get ready for the meeting, here is the list of few points which retail client may hope to see at your presentation:
- A sample of your product and its packaging should include a barcode and pricing. Your product packaging is an important factor for all retailer buyers.
- A product brochure that provides information about the product
- A list or catalog that has wholesale and retail prices, discounts, credit, delivery, allowances, and conditions of sale
- A list of shops who are presently selling your product
- Your marketing and promotion plans, including such things as in-store demos, point-of-sale displays, advertising and publicity
- Proof of the potential for a large sales volume
- Manufacturing information that includes proof of your ability for handling large productions
- Your business history
- Your business card
One important factor you want to get in the sales presentation is your commitment to promoting the products. Retailers really need a guide from the seller, they need in-shop demos, they want factor-of-sale presentations. In short, they want any type of support you can give them.