Selling to the big boys...how to?
Discussion
My friend runs a company who's manufacturing modular plastic container systems (simple and innovative protected with international patents)he asked me if would like to become a sole distributor for uk market...and here's a problem I would like to do it but don't know how - i though that it would be best to approach b and q or similar to get volume sales rather than selling one by one.
He could provide own transport,packaging, labelling etc..all i need to do is get a deal...again how?
Any form of sarcasm or perhaps even better some constructive criticism welcome.
He could provide own transport,packaging, labelling etc..all i need to do is get a deal...again how?
Any form of sarcasm or perhaps even better some constructive criticism welcome.
sickrabbit said:
My friend runs a company who's manufacturing modular plastic container systems (simple and innovative protected with international patents)he asked me if would like to become a sole distributor for uk market...and here's a problem I would like to do it but don't know how - i though that it would be best to approach b and q or similar to get volume sales rather than selling one by one.
He could provide own transport,packaging, labelling etc..all i need to do is get a deal...again how?
Any form of sarcasm or perhaps even better some constructive criticism welcome.
the big companies have their own way of doing things. so I would suggest a polite phone call to their buyers department asking just that: we are an international business looking for an inlet into the UK market for our innovative product. How would you like me to introduce this to you?He could provide own transport,packaging, labelling etc..all i need to do is get a deal...again how?
Any form of sarcasm or perhaps even better some constructive criticism welcome.
and see what they say.
sarcastic answer:
so you're too lazy to read their own website eh?
http://diy.com/faqs?requestType=articleInfo&id...
I get up at 6am on a sunday morning with my children and you ask me this? Where do I get a refund on my life??
Yours in total dissolutionment
so you're too lazy to read their own website eh?
http://diy.com/faqs?requestType=articleInfo&id...
I get up at 6am on a sunday morning with my children and you ask me this? Where do I get a refund on my life??
Yours in total dissolutionment
williamp said:
sarcastic answer:
so you're too lazy to read their own website eh?
http://diy.com/faqs?requestType=articleInfo&id...
I get up at 6am on a sunday morning with my children and you ask me this? Where do I get a refund on my life??
Yours in total dissolutionment
so you're too lazy to read their own website eh?
http://diy.com/faqs?requestType=articleInfo&id...
I get up at 6am on a sunday morning with my children and you ask me this? Where do I get a refund on my life??
Yours in total dissolutionment
Looks like...so lazy right now...
You enjoyed typing this didn't you?
Did they ever got back to you?
My Dad used to sell to the multiples (that's the big store groups).
From memory, you need to find out who the appropriate buyer is, then make an appointment to go and see that person. It might take a few visits before you get a sale, for various reasons.
I hope it goes without saying but your appearance should be top notch (suited and booted), and you should know your product inside out, including price breaks.
You don't necessarily do a formal presentation, as more often than not, it's one to one and thus more of a chat, but on the other hand, these folks are professional buyers, not your average gullible punter, so are pretty switched on. Window salesman type tricks will have you shown the door.
You also ought to do some homework on each store group, how your product would complement their existing lines etc.
As a matter of opinion, I think that link on the B&Q website that was posted is a way of filtering out the dross, I suspect the professional salespeople don't use that route of applying and waiting, unless it's part of the B&Q procedure. My guess would be that phone calls are made and appointments arranged, although getting past the switchboard/PA's might be a huge challenge.
For B&Q/Screwfix and others in the Kingfisher group, you would probably be better off going straight to the Kingfisher head office, then work your way down from there.
From memory, you need to find out who the appropriate buyer is, then make an appointment to go and see that person. It might take a few visits before you get a sale, for various reasons.
I hope it goes without saying but your appearance should be top notch (suited and booted), and you should know your product inside out, including price breaks.
You don't necessarily do a formal presentation, as more often than not, it's one to one and thus more of a chat, but on the other hand, these folks are professional buyers, not your average gullible punter, so are pretty switched on. Window salesman type tricks will have you shown the door.
You also ought to do some homework on each store group, how your product would complement their existing lines etc.
As a matter of opinion, I think that link on the B&Q website that was posted is a way of filtering out the dross, I suspect the professional salespeople don't use that route of applying and waiting, unless it's part of the B&Q procedure. My guess would be that phone calls are made and appointments arranged, although getting past the switchboard/PA's might be a huge challenge.
For B&Q/Screwfix and others in the Kingfisher group, you would probably be better off going straight to the Kingfisher head office, then work your way down from there.
I'd ask myself first if selling to the "big boys" is the only way to be successful? Most "big boys" are under awful margin pressure and if (and it's a huge if) you get in they'll most probably demand terms which will be toxic, like 120 day payment (if you're lucky) and a distribution/returns policy almost guaranteed to be mainpulated by them alongside payments.
If this product is really good, and currently not being sold here, can't you sell it direct via ditigal marketing channels? I'd avoid the "big boys" if possible.
Good luck anyway.
If this product is really good, and currently not being sold here, can't you sell it direct via ditigal marketing channels? I'd avoid the "big boys" if possible.
Good luck anyway.
I'd ask myself first if selling to the "big boys" is the only way to be successful? Most "big boys" are under awful margin pressure and if (and it's a huge if) you get in they'll most probably demand terms which will be toxic, like 120 day payment (if you're lucky) and a distribution/returns policy amost guaranteed to be mainpulated alongside payments.
If this product is really good, and currently not being sold here, can't you sell it direct via ditigal marketing channels? I'd avoid the "big boys" if possible.
Good luck anyway.
If this product is really good, and currently not being sold here, can't you sell it direct via ditigal marketing channels? I'd avoid the "big boys" if possible.
Good luck anyway.
Thanks for all the replies - I have already tried to advertise on social media (I'm not an expert) there is quiet few likes ect but this doesn't transform in to any sales - I only have few items listed on ebay now to test the waters - price is right for sure - again no sale so far (advertised for about 2-3 weeks now).
Maybe I should send some freebies out and get some feedback? Maybe it's not that good after all?
But then again it must be as it's already selling in eastern Europe in few big-ish chains - and I know that they are staring in US now.
I suppose I need an expert in the field of sales to help me out?
Maybe I should send some freebies out and get some feedback? Maybe it's not that good after all?
But then again it must be as it's already selling in eastern Europe in few big-ish chains - and I know that they are staring in US now.
I suppose I need an expert in the field of sales to help me out?
With respect, you sound completely out of your depth. You need a proper sales and marketing strategy with costings, lead times, environmental and safety information before you will even get a sniff. Setting up a twitter account and putting a few on ebay does not constitute testing the market. You need to be approaching people, going to trade shows, actively getting your name out there.
Big retailers swat away most small companies like flies, even if you manage to get an e-mail/phone number for the relevant buyer, there's a high chance they'll just ignore you unless your product is either revolutionary, or extraordinarily cheap.
Assuming you did get a big order, have you thought about how you'd fund it? Pretty high chance that the manufacturer will want paying some time before the big retailer will want to pay you.
As others have said, the sheds operate on pretty tight margins; you will get screwed, messed around and generally treated like an inconvenience. Then, if your product sells well, expect them to source a version of it themselves, direct from the far east.
I speak from experience when I tell you that t's not for the faint hearted. I'm not suggesting you shouldn't try, but go in with your eyes open.
Big retailers swat away most small companies like flies, even if you manage to get an e-mail/phone number for the relevant buyer, there's a high chance they'll just ignore you unless your product is either revolutionary, or extraordinarily cheap.
Assuming you did get a big order, have you thought about how you'd fund it? Pretty high chance that the manufacturer will want paying some time before the big retailer will want to pay you.
As others have said, the sheds operate on pretty tight margins; you will get screwed, messed around and generally treated like an inconvenience. Then, if your product sells well, expect them to source a version of it themselves, direct from the far east.
I speak from experience when I tell you that t's not for the faint hearted. I'm not suggesting you shouldn't try, but go in with your eyes open.
Plastic storage is a tough market.
Unless you are going in with a product significantly better - and being honest i'm not sure how one plastic stackable box is significantly better than another - then you are left with price.
First step is to ensure you will be competitive.
Scout around - see the competition, go into the retailers and see what they are selling. I would assume a minimum of around 50% margin on cost plus they will also be looking for volume kickbacks.
So can you sell to them at 30% of what they are retailing at (after multibuys etc)?
Likelihood is it may be an even higher margin they currently take though - plastic storage takes up a lot of valuable retail space so they need to make moremargin based on the space it takes up.
As above you will get 120 days at best. Have you funding to afford longer terms. Can be a sweetener but increases your risk if a company fails.
What are your lead times? Minimum delivery quantities? Some retailers require you to allow them to collect the product from your warehouse (assuming its not far east full containers)?
If you do get a meeting make sure you are fully prepared - go online - look at their website and current supplier of the product you are matching - make sure you don't waste their time. Buyers are generally very clear on what they want and expect you to know everything about your product. If they like it when can they test it in stores? How many colours? Turning up with a sample, a brochure and blagging it is not an option.
Spend a day in a city centre with a notepad, camera and go into every store recording - price, quality, range. Do the shelves look empty? Could mean a delay or issue in supply, could mean the buyer is annoyed with current supplier, could be an opportunity.
Key thing though- Is the product really better/cheaper than what they have? Really? Going into bat with an unknown (i assume to the UK) brand requires an USP that not only is useful but will actually drive sales for the retailer.
May be worth finding a "buyers" forum - ask what they expect as i'm not a buyer so will have missed loads.
Good luck!
Unless you are going in with a product significantly better - and being honest i'm not sure how one plastic stackable box is significantly better than another - then you are left with price.
First step is to ensure you will be competitive.
Scout around - see the competition, go into the retailers and see what they are selling. I would assume a minimum of around 50% margin on cost plus they will also be looking for volume kickbacks.
So can you sell to them at 30% of what they are retailing at (after multibuys etc)?
Likelihood is it may be an even higher margin they currently take though - plastic storage takes up a lot of valuable retail space so they need to make moremargin based on the space it takes up.
As above you will get 120 days at best. Have you funding to afford longer terms. Can be a sweetener but increases your risk if a company fails.
What are your lead times? Minimum delivery quantities? Some retailers require you to allow them to collect the product from your warehouse (assuming its not far east full containers)?
If you do get a meeting make sure you are fully prepared - go online - look at their website and current supplier of the product you are matching - make sure you don't waste their time. Buyers are generally very clear on what they want and expect you to know everything about your product. If they like it when can they test it in stores? How many colours? Turning up with a sample, a brochure and blagging it is not an option.
Spend a day in a city centre with a notepad, camera and go into every store recording - price, quality, range. Do the shelves look empty? Could mean a delay or issue in supply, could mean the buyer is annoyed with current supplier, could be an opportunity.
Key thing though- Is the product really better/cheaper than what they have? Really? Going into bat with an unknown (i assume to the UK) brand requires an USP that not only is useful but will actually drive sales for the retailer.
May be worth finding a "buyers" forum - ask what they expect as i'm not a buyer so will have missed loads.
Good luck!
http://imageshack.com/a/img673/6745/MLg8nA.jpg
Basically it's a series of containers offered in various sizes and colors which clip together (so that you don't have to fix each one of them) and can be fitted on a wall or even around a pillar or in a van or on a trolley - the cups can be unclipped from a wall holder an clipped in portable organizers again in various size and color combinations - I could offer custom colors as well. The range is still growing with belt clips and other accessories to be available shortly.
Basically it's a series of containers offered in various sizes and colors which clip together (so that you don't have to fix each one of them) and can be fitted on a wall or even around a pillar or in a van or on a trolley - the cups can be unclipped from a wall holder an clipped in portable organizers again in various size and color combinations - I could offer custom colors as well. The range is still growing with belt clips and other accessories to be available shortly.
Why don't you try some of the racking/shelving companies. This could be right up their street.
We supply all the major UK catalogue and web based enterprises but the majority of them prefer you to drop-ship on their behalf so you will need warehousing and of course good carrier rates etc.
Email me if you want more information.
We supply all the major UK catalogue and web based enterprises but the majority of them prefer you to drop-ship on their behalf so you will need warehousing and of course good carrier rates etc.
Email me if you want more information.
What do the boxes offer over a manufacturer like Really Useful, here: http://www.reallyusefulproducts.co.uk/uk/
They sell to many of the multiples.
Can you do it cheaper, different colours, other shapes, more quickly, give longer payment terms, etc, etc.
You need to understand how you can differentiate yourself first.
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?
Selling to the big boys sounds nice, but I think it poses too much risk unless you sell to all of them. I'd find a way of getting lots of small customers first, then add a big one when the business can deal with the risk. Just my opinion of course.
They sell to many of the multiples.
Can you do it cheaper, different colours, other shapes, more quickly, give longer payment terms, etc, etc.
You need to understand how you can differentiate yourself first.
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?
Selling to the big boys sounds nice, but I think it poses too much risk unless you sell to all of them. I'd find a way of getting lots of small customers first, then add a big one when the business can deal with the risk. Just my opinion of course.
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