Most inventors and small businesses I talk to about their products have goals of selling through Walmart, Target, Walgreens, Home Depot, and the other major retailers out there. "If I could just get my product into Walmart, then…" Maybe. It can be a tough road onto the shelves of these stores and I rarely find information out on the web that offer some explanation or tips.
Alas, during one of the many Google searches I did throughout yesterday, I stumbled upon an errant result (or perhaps the blogging gods knew this article needed to have a blog post on it). Startupnation, a resource website for entrepreneurs and small businesses posted: Savvy Sell-Through Tips to Keep Customers Coming Back for More—Part’s One and Two. This is an informational article for those small businesses, start-ups, and inventors looking to take their retail channel to the next level and get their products some shelf space in a major retailer. Those new to this game often believe the key to their problems is having the best product in the world. If only…
There is a lot more that goes into getting a product on the shelf in these big box gatekeepers to America’s wallets, let alone successfully selling through them. See my last post on Thomas Edison–prolific inventor AND marketer.
The article’s main points in bullets, with my comments beneath:
- Repeat after Us: Positioning, positioning, positioning…
Indeed. Where is your product going to be in the store? Endcap? Aisle? What category? What product’s will it be next to? Does your packaging pop in comparison to your competitor’s products? These are things you can start considering early on if sell-through in major retailers is a key business move.
- Give retailers a sell-through tool kit
Last time I went shopping at Best Buy, I counted 39 "I don’t know’s" and 17 blank stares with head scratching in response to my questions about products. Ok, not really. But, it feels that way almost every time I go into stores like that, unless I stumble upon the superstar, diamond in the Western Region of stores, employee. Give these folks the ammo to sell your product and explain why it’s cool and the benefits of buying it.
- Show why your product is better than the other guys
Packaging and pricing are two ways the article points out to accomplish this. I very much like the first one because you have so much control over it and you can see what your competitor’s product packaging is like beforehand and design your packaging to triumph. The second strategy, price, is ok. But, be careful with this one. It should be wielded only with good data analysis to support it and it’s important to remember that once you go low, it is very hard to climb back up. Limited time promotions can be a way to achieve this, but you’ll pay a premium for this.
Their bottom line:
You
have to do a lot more than just fulfill your retailers’ orders – you
have to help them sell your products through to consumers. If you come
up with good ideas to place and support them, retailers can be
persuaded to go along.
Part Two:
- Get all exclusive with your major retailers
Yup. Exclusivity is a negotiation point, right along with almost everything else. Sometimes this works.
- Mix it up–extend your product line
Another good strategy. Don’t do it blindly. Brainstorm all the different products you could develop. Draw a roadmap according to which ones makes sense to develop when, targeted to who, etc. Think strategically about which products to develop when and how, in order to maximize the entire product line. The key is to maximize the return of your portfolio of products, not have each one developed in silos.
- Spread your product’s backstory
Packaging. With about half or more of purchasing decisions made right there in the aisle, you want to give all you’ve got to help people make the right decision.
- No ad budget–go to grass roots
I like this one. It forces people to think and act creatively rather than just try and throw money at problems. It certainly helps and can be a negotiating point if you are rolling out a nationwide marketing and PR campaign to sell your product. But not everyone has this option, and these days, creativity, buzz, viral ideas, and word-of-mouth, are more potent and easy to create than ever.
Part Two’s Bottom Line:
Landing
those first retail deals is only the start. From then on, it takes
innovation, imagination and work to get the sell-through that keeps
your retail partners coming back for more – while you watch your
company grow.
Check out the article.