Selling to the big boys...how to?
Discussion
The issues you'll have will be ability to scale and creditworthiness.
I've gone down this road, not with these guys but similar in a tech field, and we were #33423232 on the list of people to be paid, we got no product focus and limited traction. More of a 'stick it out and see what happens' approach.
We couldnt rebate them for volume because we didnt have the cashflow and couldnt make enough of them, and the whole thing was generally a waste of time for everyone.
If you can make it work, good luck. I'd be thinking more of storage places like big yellow whatever rather than trying to retail them
I've gone down this road, not with these guys but similar in a tech field, and we were #33423232 on the list of people to be paid, we got no product focus and limited traction. More of a 'stick it out and see what happens' approach.
We couldnt rebate them for volume because we didnt have the cashflow and couldnt make enough of them, and the whole thing was generally a waste of time for everyone.
If you can make it work, good luck. I'd be thinking more of storage places like big yellow whatever rather than trying to retail them
Edited by andy-xr on Tuesday 30th September 10:21
OP you haven't got a clue so forget huge sales that will never happen, send QVC a sample, practice talking about them and make your millions that way - I know several guys that do really well on QVC - also try the discount chains like B&M they will be gentle with you (compared to B&Q)
DSLiverpool said:
OP you haven't got a clue so forget huge sales that will never happen, send QVC a sample, practice talking about them and make your millions that way - I know several guys that do really well on QVC - also try the discount chains like B&M they will be gentle with you (compared to B&Q)
When selling on QVC, did the people you know do the selling themselves or did they hire someone to do the selling?Not a line I have thought about but looks quite good for my products that could do very well there.
Du1point8 said:
DSLiverpool said:
OP you haven't got a clue so forget huge sales that will never happen, send QVC a sample, practice talking about them and make your millions that way - I know several guys that do really well on QVC - also try the discount chains like B&M they will be gentle with you (compared to B&Q)
When selling on QVC, did the people you know do the selling themselves or did they hire someone to do the selling?Not a line I have thought about but looks quite good for my products that could do very well there.
Its not for everyone but you can hire an actor if you have no ability.
DSLiverpool said:
Du1point8 said:
DSLiverpool said:
OP you haven't got a clue so forget huge sales that will never happen, send QVC a sample, practice talking about them and make your millions that way - I know several guys that do really well on QVC - also try the discount chains like B&M they will be gentle with you (compared to B&Q)
When selling on QVC, did the people you know do the selling themselves or did they hire someone to do the selling?Not a line I have thought about but looks quite good for my products that could do very well there.
Its not for everyone but you can hire an actor if you have no ability.
I would have to hire an actor as Im not bad on show and tell, but business partner who is the kind of face of the company (from the country its made in and little more photogenic that ugly me) is a little hesitant despite me insisting that this is the way forward, just shy about the whole process.
clarkey said:
Finally, let's say you sell to B&Q. They take 95% of your production. They insist on 120 day payment terms, and are slow on that. Then they are very strict on quality, and may reject payment on a whole batch because of one QC failure. A year later they decide to extend terms to 180 days. Do you have the working capital to trade like this? What if they cancel their order completely or reduce it?
I know nothing of what the OP is hoping to do and so can't offer any specific advice.All that I can say is that if someone wants be to give them 6 months interest free credit and then is still going to dick me about at the drop of a hat it's not a game I would want to have any bar of.
Better to try to start off on a smaller scale and build up over a few years. Again I know nothing but I'll bet that Hozelock (random big name off top of head) have very different contracts to those of smaller suppliers.
It is a reworking of an age old product. One must never forget that Dyson was a revision of an existing product, but in such a way as to make it far better than anything else on the market at the time. If this is, in reality rather than on paper which I have found often disappoints, a game changer of a product you would do well starting off with the QVC's and independent hardware/trade suppliers to get an awareness of your product first before considering feeding the vultures.
Rude-boy said:
clarkey said:
Finally, let's say you sell to B&Q. They take 95% of your production. They insist on 120 day payment terms, and are slow on that. Then they are very strict on quality, and may reject payment on a whole batch because of one QC failure. A year later they decide to extend terms to 180 days. Do you have the working capital to trade like this? What if they cancel their order completely or reduce it?
I know nothing of what the OP is hoping to do and so can't offer any specific advice.All that I can say is that if someone wants be to give them 6 months interest free credit and then is still going to dick me about at the drop of a hat it's not a game I would want to have any bar of.
Better to try to start off on a smaller scale and build up over a few years. Again I know nothing but I'll bet that Hozelock (random big name off top of head) have very different contracts to those of smaller suppliers.
It is a reworking of an age old product. One must never forget that Dyson was a revision of an existing product, but in such a way as to make it far better than anything else on the market at the time. If this is, in reality rather than on paper which I have found often disappoints, a game changer of a product you would do well starting off with the QVC's and independent hardware/trade suppliers to get an awareness of your product first before considering feeding the vultures.
Agreed with all of you - I think I will forget about B&Q for now - I just though it was a good idea but obviously isn't - QVC is something I will consider so thanks for that one - you will not see me presenting it lol
And yes I think product's I'm trying to introduce do offer something slightly different - something which haven't been done in this way already.
And yes I think product's I'm trying to introduce do offer something slightly different - something which haven't been done in this way already.
sickrabbit said:
Agreed with all of you - I think I will forget about B&Q for now - I just though it was a good idea but obviously isn't - QVC is something I will consider so thanks for that one - you will not see me presenting it lol
And yes I think product's I'm trying to introduce do offer something slightly different - something which haven't been done in this way already.
B&M Stores - a very hungry purchaser And yes I think product's I'm trying to introduce do offer something slightly different - something which haven't been done in this way already.
sickrabbit said:
Agreed with all of you - I think I will forget about B&Q for now - I just though it was a good idea but obviously isn't - QVC is something I will consider so thanks for that one - you will not see me presenting it lol
And yes I think product's I'm trying to introduce do offer something slightly different - something which haven't been done in this way already.
All I will say is be ready to have a lot of phone calls and emails ignored by even the smallest of companies, they don't like investing in something that is not proven.And yes I think product's I'm trying to introduce do offer something slightly different - something which haven't been done in this way already.
I found the way onto the market was the following:
Ideal Home Show... Cost a lot for us a fledgling company, but got best 5 picks of the show and the following media interest:
Love your Garden TV show used our products
Times magazine showed them in Hot stuff.
Build It Magazine showed them.
Featured in Time Out magazine
Plus several others.
we then went to other trade shows and showed a easy profit off all.
Ideal Home show I would not do again, but I have lined up many more 3 day shows that are IMO better, but IHS was the break into the UK market we needed and was worth a lot more in media interest than us just breaking even.
I would look at the major trade shows and start there to get interest, then advertise that to the resellers to prove it actually works and sells.
Don't let a scare story about B&Q terms put you off. You can't approach this one retailer at a time, you've got to go for all of the potentials.
There will be quick wins and really slow burners and you'll be full on managing all of them.
I work in the food industry and if I just presented my NPD to Tesco and waited I'd be twiddling my thumbs for months. So I'd be going to all the other mults but also the convenience stores, the wholesalers etc, etc.
Remember these big guys have a lot less flexibility in when they can do things, so you need to hit their timings. Say you get a meeting with B&Q they may say yes but the next range review is not for six months.
Meanwhile Homebase, Wickes, etc, etc are opportunities. As are regional mults and the independent trade.
There will be quick wins and really slow burners and you'll be full on managing all of them.
I work in the food industry and if I just presented my NPD to Tesco and waited I'd be twiddling my thumbs for months. So I'd be going to all the other mults but also the convenience stores, the wholesalers etc, etc.
Remember these big guys have a lot less flexibility in when they can do things, so you need to hit their timings. Say you get a meeting with B&Q they may say yes but the next range review is not for six months.
Meanwhile Homebase, Wickes, etc, etc are opportunities. As are regional mults and the independent trade.
Rude-boy said:
I know nothing of what the OP is hoping to do and so can't offer any specific advice.
All that I can say is that if someone wants be to give them 6 months interest free credit and then is still going to dick me about at the drop of a hat it's not a game I would want to have any bar of.
Better to try to start off on a smaller scale and build up over a few years. Again I know nothing but I'll bet that Hozelock (random big name off top of head) have very different contracts to those of smaller suppliers.
It is a reworking of an age old product. One must never forget that Dyson was a revision of an existing product, but in such a way as to make it far better than anything else on the market at the time. If this is, in reality rather than on paper which I have found often disappoints, a game changer of a product you would do well starting off with the QVC's and independent hardware/trade suppliers to get an awareness of your product first before considering feeding the vultures.
Having dealt with Hozelock for a national chain I can assure you they are very open to very good terms 120 days + are not uncommon plus extra promo discount , shelf fill discounts , stocking fees, lifecycle management deals and rebates , you just have to be buying in enough volume and any chain with 500+ stores is in that game.All that I can say is that if someone wants be to give them 6 months interest free credit and then is still going to dick me about at the drop of a hat it's not a game I would want to have any bar of.
Better to try to start off on a smaller scale and build up over a few years. Again I know nothing but I'll bet that Hozelock (random big name off top of head) have very different contracts to those of smaller suppliers.
It is a reworking of an age old product. One must never forget that Dyson was a revision of an existing product, but in such a way as to make it far better than anything else on the market at the time. If this is, in reality rather than on paper which I have found often disappoints, a game changer of a product you would do well starting off with the QVC's and independent hardware/trade suppliers to get an awareness of your product first before considering feeding the vultures.
I would say that bigger national chains may not want to deal with a one product supplier though. I worked in a very specialised market for a couple of years and was under constant pressure to reduce the number of suppliers, even if sometimes they had a better product, fewer suppliers meant increased efficiencies including potentially bigger rebates.
Ive been involved in novel construction products and pushing/forcing them into the market place for 10 yrs now. If I had a pound for every time some one said " why don't you approach B&Q et Al " I'd be a millionaire.
Let them find you and make an approach, until then independents, specialists and web marketing will be your root. So far as financing the inevitable credit go with " invoice financing", it'll eat around 5% of your t/o but you'll have insurance against customer bankruptcy and big brother to help chase late payers.
If you feel you must attack the volume market I'd suggest meeting with a current supplier of your target and discuss a " line extension" of there product supply. In essence involve a middle man with more clout.
One of the major problems with much larger buyers v's suppliers is that once you start to move product ( perhaps a year down the rd) with them they'll recognise they're say 60% of your sales and REALLY start to attack your prices - you'll find your minimum price offer, then they'll threaten to leave you standing - and do it if you don't capitulate to they're demands.
Let them find you and make an approach, until then independents, specialists and web marketing will be your root. So far as financing the inevitable credit go with " invoice financing", it'll eat around 5% of your t/o but you'll have insurance against customer bankruptcy and big brother to help chase late payers.
If you feel you must attack the volume market I'd suggest meeting with a current supplier of your target and discuss a " line extension" of there product supply. In essence involve a middle man with more clout.
One of the major problems with much larger buyers v's suppliers is that once you start to move product ( perhaps a year down the rd) with them they'll recognise they're say 60% of your sales and REALLY start to attack your prices - you'll find your minimum price offer, then they'll threaten to leave you standing - and do it if you don't capitulate to they're demands.
Liqrub said:
Ive been involved in novel construction products and pushing/forcing them into the market place for 10 yrs now. If I had a pound for every time some one said " why don't you approach B&Q et Al " I'd be a millionaire.
Let them find you and make an approach, until then independents, specialists and web marketing will be your root. So far as financing the inevitable credit go with " invoice financing", it'll eat around 5% of your t/o but you'll have insurance against customer bankruptcy and big brother to help chase late payers.
If you feel you must attack the volume market I'd suggest meeting with a current supplier of your target and discuss a " line extension" of there product supply. In essence involve a middle man with more clout.
One of the major problems with much larger buyers v's suppliers is that once you start to move product ( perhaps a year down the rd) with them they'll recognise they're say 60% of your sales and REALLY start to attack your prices - you'll find your minimum price offer, then they'll threaten to leave you standing - and do it if you don't capitulate to they're demands.
You never give them your generic product - always a custom version even if it's only packing otherwise they will screw youLet them find you and make an approach, until then independents, specialists and web marketing will be your root. So far as financing the inevitable credit go with " invoice financing", it'll eat around 5% of your t/o but you'll have insurance against customer bankruptcy and big brother to help chase late payers.
If you feel you must attack the volume market I'd suggest meeting with a current supplier of your target and discuss a " line extension" of there product supply. In essence involve a middle man with more clout.
One of the major problems with much larger buyers v's suppliers is that once you start to move product ( perhaps a year down the rd) with them they'll recognise they're say 60% of your sales and REALLY start to attack your prices - you'll find your minimum price offer, then they'll threaten to leave you standing - and do it if you don't capitulate to they're demands.
It does pay off in the end... I started with the small fry and now onto the medium fry in the form of a company that have 16 stores dotted all across the country...
Thats just going through today and hopefully that is the coverage I need to tide me over until October/November when I have another 4/5 Resellers waiting on my certifications to come through from the EU to say we are certified and sustainable throughout the whole process.
When they come through Im laughing... or crying if they don't... Had 10 months of ups and downs... every time I have an up... something comes along to kick us down... now Im getting there and thats good.
Thats just going through today and hopefully that is the coverage I need to tide me over until October/November when I have another 4/5 Resellers waiting on my certifications to come through from the EU to say we are certified and sustainable throughout the whole process.
When they come through Im laughing... or crying if they don't... Had 10 months of ups and downs... every time I have an up... something comes along to kick us down... now Im getting there and thats good.
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