best practices: selling to big box retailers · 2018. 4. 2. · common mistakes to avoid your...

BEST PRACTICES: SELLING TO BIG BOX

RETAILERSAugust 21, 2014

Vanessa Ting

Copyright © 2014 Buyerly LLC

Key takeaways

•Expectations of the retail buyer

•How to align your business with their financial goals and merchandising strategies

•What every retail pitch should contain

•Common pitching mistakes to avoid

•Resources & Tools


Who is Vanessa Ting?

3

GETTING INTO THE MIND OF A BUYER

Section 1

Retail Buyer’s mental checklist Retailer Expectations


PRODUCTDifferentiated productWell-communicated benefits and effective packagingPriced “correctly”

Given

But how can you really stand apart from your peers?

Retail Buyer’s mental checklist

SALESSales history and forecasts

MARKETINGMarketing programs

VENDOR EXECUTION & CREDIBILITY

Retailer Expectations


HOW IT BENEFITS THE RETAILERFinancial goalsMerchandising objectives

Demonstrate sales potential• Product Positioning, Packaging and Pricing helpful for buyers

• Sales history necessary for buyers

• Demonstrate your sales potential by showing:

Your Current Sales

1. Is it strong?1. Units Per Store Per

Week (UPSPW)2. Is it growing?

1. Last week2. Last 8 weeks3. YTD4. Versus YA

3. Forecasted sales

Your Current Distribution

1. Current retailers2. Full chain?3. Store count vs. YA

(growth)



Pitching to retailers is not just about the greatness of your product. It is also about how much money you are going to make for the retailer.

Marketing Programs

Retailers want assurances that your product will sell…

• Offer programs that build brand awareness

• And direct consumers to buy your product in their stores

• Programs range from advertising and PR to more retailer-specific programs:

• Coupons redeemable at those stores

• Online marketing (your website, Facebook)

• Marketing lists, social media lists

• Point of purchase displays and materials

• Instill a sense of urgency



Strong Vendor Execution

• Reliability• Supply chain management

• Inventory management

• Logistics - On time and accurate shipments

• Business Partnership• Category expertise

• Strong business acumen

• Good communication

• Problem-solution orientation

• Understanding of retailer’s goals and merchandising strategies

Scaling up slowly is smart for many reasons, including ironing out the kinks in your supply chain and logistics.



Scaling up slowly

•Selling to big box retailers doesn’t happen over night

•Building sales history, building brand awareness and demand and fine tuning vendor execution all takes time!

•Retail buyers are wary of vendors who haven’t been in market for very long.


Align your brand with the buyer’s goal of driving sales

Common ways to build a financial case:

• Will this product drive incremental sales? In other words, will it not cannibalize the sales of products already in the assortment?

• Purchase frequency – On average, how many times a year does someone purchase this item?

• Trip size – On average, how many units of this item does someone purchase in one given trip?

• Position your product as either a topline sales-driver or a margin-driver and align it with their financial strategy.

The financial case

Tip: Presenting a strong business case does

not just include sales numbers, but a well-defined rationale for why your product makes financial sense in that buyers’ assortment.

Retailer Expectations – Vendor Credibility


Align your brand with the buyer’s merchandising growth strategy

Common ways to build a business case:

• Is it aligned with growth strategy?

• New consumer, new store format, new product segment, new trend

• Is it aligned with the retailer’s brand strategy?

• Are they able to one-up their competitors?

• First to market

The strategic case

TIP: Use these arguments in your pitch deck, as talking points at a trade show, in your email cover letter to buyers, in your line sheets, to angel investors, to brief sales representatives and distributors.

Retailer Expectations – Vendor Credibility


YOUR RETAIL PITCH

Section 2

ChecklistPreparing Your Pitch

Pitch Deck Overview of how you meet their key

objectives (financial/business case) Sales History or Sales Forecasts Current Distribution Product benefits, differentiation Past marketing successes/ROI Marketing plan/Upcoming marketing Assortment Recommendations Recommended deletions SRP/Wholesale and Margin Ship date

Pitch Package Pitch Deck Letter of introduction

(summary of Pitch deck) Line sheet Product samples

What every pitch should contain…


Getting a meeting with the buyerYour Retail Pitch

You have a great product & are a good vendor - but why does a buyer need your line NOW?

• More art than science

• Email, phone, mail – buyers’ preferences vary

• KEEP IT SHORT and focused on “Pitch To Win” framework

• Buyers fear losing out on a sales opportunity

• Instill a sense of urgency

• After first contact, nurture the relationship.

TIP: It’s OK to send newsworthy updates to buyer’s you’ve already contacted once every 6-8 weeks. Use your BEST JUDGMENT!


Following up & nurturing the lead

• Follow-up with any outstanding questions the buyer had for you.

• After that reach out approx. once a quarter with…

• Newsworthy updates about your business

• New stores that have picked up your line

• Upcoming marketing activity that will drive sales

• Competitive retailer updates

• Industry news or market research they may not have seen

• Pay them a visit - “Hail Mary”

Your Retail Pitch

Be persistent, but not annoying. Be informative.

Good luck!Copyright © 2014 Buyerly LLC

Common Mistakes To Avoid

Your Retail Pitch

1. Not laying a foundation for trust and

building credibility

2. Trying to sell as many units as possible versus selling enough to meet demand

3. Not having incorporated the retailers’ perspective earlier in the game in packaging, pricing, markup, etc.

“run from these mistakes!”

RESOURCES FOR SUCCESS

Last Section!

Buyerly Confirms “I’m Retail-Ready!”

…Does my product have REAL sales potential in their stores?

…What selling points are most appealing retail buyers?

…What much inventory would this retailer order?

…Why do retail buyers keep telling me No?

A valuable service for Entrepreneurs!! Getting my Product Feedback™ gave me the confidence to know my product is a good idea and where to focus my improvements.” -SwaggerTag Founder

“

Submit your product on www.Buyerly.comCoupon code: JPMA

at the

2013 Urban Rebound Business Pitch Competition

Special Offer – Buyerly Product Feedback™

http://www.buyerly.com/

Upcoming events

Ask any question about retail and

more

Join our happy hour on Sept 8

RSVP for both events on www.retail-path.com or email Vanessa

http://www.retail-path.com/

any questions?

www.retail-path.com www.buyerly.com www.RetailTable.comTips for Retail SuccessConnecting Brands and BuyersInsights That Land More Stores

Contact info:Vanessa Ting

[email protected]

@retailpath@buyerly

Thank you.

best practices: selling to big box retailers · 2018. 4. 2. · common mistakes to avoid your...

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