After I noticed how many women entrepreneurs were pitching consumer products in the Sharkette Tank, the need to attain distribution in retail stores became apparent. This thought was supported by the response several investors made after the Conference, “Great product, but she needs to get her revenues up for me to consider investing.” Another investor added, “If there is such a great need and demand, why are her numbers not any higher?”
Instantaneously, I had a flash from the past. My past life working as a Territory Manager for Kellogg’s, then M&M/MARS, and finally a medical supply company called Span America. All companies had products and my main objectives were product distribution, shelf space, category management and volume.
When I mentioned my background to one entrepreneur, she almost fell over and immediately asked me to help her. And my consulting work began helping entrepreneurs get their product pitches down for retail distribution, including their product pitch decks. The following ten (10) tips are proven suggestions, and I hope they help you as much as they helped other entrepreneurs.
1. ALWAYS CONSIDER YOUR AUDIENCE WITH ANY PITCH
2. What problem does your product solve?
This is the single most important question. You are grabbing the Retailer’s attention- be creative and have a sample. You want the buyer to feel a sense of urgency- that his/her customer absolutely is looking for and needing your product, and why.
3. What EXACTLY does your product do?
The key word is exactly. Start with the initial users, (customers) and explain what the product did for them. Be specific by listing off exact features and why it solved a customer’s problem. Testimonials are vital to initial trial of a new product. If you have solid testimonials, (not from your mom), use them.
4. How is your product different from the competition?
Does your product absorb better, organic, fragrance free? If there are buying trends that back up why your product is superior, provide the information. NEVER say competition does not exist. If you cannot find anything like it, say the closest product to mine that I was able to locate is____. Make sure you can back up all statements and claims.
5. A Retailers’ Shelf Space Is Their Commodity- They want to know how your product will improve their profit margin for the category and ultimately their store. They want to know the turn of the product, (or demand) and the repeat purchase potential. They want to know what other products a customer may buy while purchasing yours.
6. A Retailer Is Looking to Drive Business TO and THROUGH Their Store- They want to know what marketing plans you have for your product. What are your advertising campaigns, Social Media plans, Co-Op Advertising, upcoming Media interviews, articles, blogs, TV/Cable promotions, and coupons. A great selling tool is to cross promote with an existing line or Brand.
7. Retailers Are Competitors: They want to know who else sells your products. Retailers like to see that you are selling your product successfully, even if it is through a Facebook Page.
8. Do Not Expect the Retail Buyer to Know Everything About the Product Category You need to come in with some facts and market research for the buyer- not too much or his eyes will glaze over; however, enough to show him that you the business and you can help him grow this category in dollars and market share.
9. Just Because You Are New, Does Not Mean You Are Not Worth The Chance: Some buyers will take a chance on a product even though it has no sales history, especially if they support local small business owners or local growers. AND, buyers need to offer new and innovative products, therefore, you are really helping him/her be successful at their job- but don’t say that!
10. Have a Manufacturer Suggested Retail Price, (MSRP), the Retailer’s Wholesale Cost, and the profit margin calculated prior to pitching.
Distribution is the first step for your product’s success. Following up on how the product sells is vital to your overall business success and growth in product distribution. Demos, samplings or trunk sales are an excellent tool for new product distribution. This allows the retailer to try a new product without giving long term space on a shelf. Offer demos immediately as a way to build trust. You can find demo companies in your local area. This is an additional expense and must be included in your wholesale price. .
OWN IT OMAHA FEB. 6, 2015 PITCH TO RETAILERS WWW.OWNITOMAHA.COM
Instantaneously, I had a flash from the past. My past life working as a Territory Manager for Kellogg’s, then M&M/MARS, and finally a medical supply company called Span America. All companies had products and my main objectives were product distribution, shelf space, category management and volume.
When I mentioned my background to one entrepreneur, she almost fell over and immediately asked me to help her. And my consulting work began helping entrepreneurs get their product pitches down for retail distribution, including their product pitch decks. The following ten (10) tips are proven suggestions, and I hope they help you as much as they helped other entrepreneurs.
1. ALWAYS CONSIDER YOUR AUDIENCE WITH ANY PITCH
2. What problem does your product solve?
This is the single most important question. You are grabbing the Retailer’s attention- be creative and have a sample. You want the buyer to feel a sense of urgency- that his/her customer absolutely is looking for and needing your product, and why.
3. What EXACTLY does your product do?
The key word is exactly. Start with the initial users, (customers) and explain what the product did for them. Be specific by listing off exact features and why it solved a customer’s problem. Testimonials are vital to initial trial of a new product. If you have solid testimonials, (not from your mom), use them.
4. How is your product different from the competition?
Does your product absorb better, organic, fragrance free? If there are buying trends that back up why your product is superior, provide the information. NEVER say competition does not exist. If you cannot find anything like it, say the closest product to mine that I was able to locate is____. Make sure you can back up all statements and claims.
5. A Retailers’ Shelf Space Is Their Commodity- They want to know how your product will improve their profit margin for the category and ultimately their store. They want to know the turn of the product, (or demand) and the repeat purchase potential. They want to know what other products a customer may buy while purchasing yours.
6. A Retailer Is Looking to Drive Business TO and THROUGH Their Store- They want to know what marketing plans you have for your product. What are your advertising campaigns, Social Media plans, Co-Op Advertising, upcoming Media interviews, articles, blogs, TV/Cable promotions, and coupons. A great selling tool is to cross promote with an existing line or Brand.
7. Retailers Are Competitors: They want to know who else sells your products. Retailers like to see that you are selling your product successfully, even if it is through a Facebook Page.
8. Do Not Expect the Retail Buyer to Know Everything About the Product Category You need to come in with some facts and market research for the buyer- not too much or his eyes will glaze over; however, enough to show him that you the business and you can help him grow this category in dollars and market share.
9. Just Because You Are New, Does Not Mean You Are Not Worth The Chance: Some buyers will take a chance on a product even though it has no sales history, especially if they support local small business owners or local growers. AND, buyers need to offer new and innovative products, therefore, you are really helping him/her be successful at their job- but don’t say that!
10. Have a Manufacturer Suggested Retail Price, (MSRP), the Retailer’s Wholesale Cost, and the profit margin calculated prior to pitching.
Distribution is the first step for your product’s success. Following up on how the product sells is vital to your overall business success and growth in product distribution. Demos, samplings or trunk sales are an excellent tool for new product distribution. This allows the retailer to try a new product without giving long term space on a shelf. Offer demos immediately as a way to build trust. You can find demo companies in your local area. This is an additional expense and must be included in your wholesale price. .
OWN IT OMAHA FEB. 6, 2015 PITCH TO RETAILERS WWW.OWNITOMAHA.COM