1FrontWave

Want to sell your product in Big Retail? What you need to know!

2FrontWave

IntroductionSelling in through Retail partners is a challenge, difficult, expensive, time consuming and full of risk.

I’m trying to give a few tips over the most usual challenges involved dealing with the big retailers in the USA and Europe.

3FrontWave

A few facts on retail sales

Purchasing Decisions• Over 2/3 of the consumer-buying decisions are made at the store, with customers often switching brands.

• 90% of those decisions are influenced by the sales staff

• Price is only responsible for 40% of the final purchasing decision

• In-Store stock, pricing and easy to use are the most important deciding factors.

Retailer motivation• Marketing funds

• Training to sales staff

• Special promotions

• High product rotation

• Sufficient stock volume

• Easy return policy

• Working with preferred distributors

4FrontWave

Sales staff influence

• Recommendation of a knowledgeable salesperson is the #1 in-store purchase influencer and that salespeople “sell what they know” the best

• Effectively educating these key individuals on your products is essential

• Some retailers allow in-store training of the sales staff by the vendors or distributors, others prefer organized seminars on selected dates

• It is essential to convince the sales staff of the quality of your product, and to ensure the return ratio is low, otherwise they get frustrated

5FrontWave

Location, location, location

• What you pay in retail is for traffic, so you need to be found

• Product visibility is one of the most important factors

• If you sell a high volume small product it needs to stand out from the rest. You need to have more stock visible to the customer.

• For larger items you need at least one unit on display.

6FrontWave

What the retailer wants?

• Marketing funds, lots of them…..$$$$$$

• Participation in all special promotions, catalogs, sales, etc..

• Free stock and fast rotation

• Very long payment terms (2nd most important business is cash flow)

• Exclusive promotions with them

• Free advertisement from the vendor

• Lowest Price Guarantee (paid by the vendor)

• Fast return and credit

• Funded heads (sales people you pay to be there)

7FrontWave

What you need to provide

• Stock rotation

• Price Protection

• Sales people training

• Marketing material (Displays, interactive presentations, etc.)

• Fast access to stock (logistics)

• Local support

8FrontWave

The importance of the distributor

• A distributor can take up to 90% of the pain working with retailers

• The conditions for payment, credit, stock rotation, price protection, logistics, etc. can be negotiated with the distributor and they will transfer them to the retailer.

• Some distributors specialize in working with eTailers and act as their logistic arm.

• For specific marketing programs it is important to work directly with the retail partner

9FrontWave

A few Ideas• Invest in Store training and promotion, it will give

much more ROI than catalogs, email. Remember that most purchasing decisions are made at the store.

• Work with your distributors to standardize the payment, rotation and stock policies.

• Get a distributor preferred by the main retailers with strong financial situation

• Don’t overstock the retailer. They really hate that, but also you need to have product available to restock them as needed

• Work the sales people on the floor. They are your best chance to move your product fast.

10FrontWave

If you want to know more, let me help!

Email me at info@frontwave.euOr call +1-814-317-6155