Retailers, You And Manufacturers
Posted by David Catt on: 2005-08-03 13:56:24
as long as it is unedited and the bylines at the end are included. If published on the web, the
url in the resource box must be hyperlinked. A courtesy copy of your publication would be
appreciated. Thanks!
The Litter Box by David Catt
Retailers, You and Manufacturers
©2004-05 - David B. Catt - all rights reserved
OK! This brief may go little off the mark of what business is trying to do to you. How nice
things would be if as a business we could rely strictly on "tell a friend" referrals and internet
sales. I have been asked many times why our company's product is not in stores [yet]. It is
not due to lack of trying. There are many things involved in dealing with retailers that most
people are unaware of.
First, the big "Catch 22". Stores want to see large volume of sales before they will consider
putting a product on the shelf. In other words, they want proof that a product move off their
shelf. The "Catch 22": how do show them large sales when the product is not in a store?
How large is large? In the good old days, a mom and pop store would put your product on
the shelf on consignment i.e you got paid only for product sold less a percentage. It was an
excellent starting point to build sales. Do you still have a mom and pop store where you live?
Here is an idea for you to pass along to your favorite retailer: Why not start a "new products"
display at the entrance of your store to help you and manufacturers (especially start-ups)
introduce products to your customers. Do not sell them just display along with the selling
price. This display could even be a bulletin board with pictures of products. Have a comment
box available so customers can give you feedback and even request you carry an item. The
small amount of space lost should pay off as a simple and effective way to test new items
while minimizing your investment.
Did you know that most retailers charge manufacturers a "slotting fee". This is basically rent
for shelf space. I have heard a manufacturer got charged $40,000 for one "slot" in a test region.
Imagine nationwide cost? I won't even touch a retailer's markup on an item other than to ask
you if you think the retailer loses money when they sell you something at 50 percent off? They
have overhead too.
There is one store that many point out would be a good place for our product. Maybe yes and
maybe no. Recently, an excellent article was brought to my attention. You can find this article
at http://www.fastcompany.com/magazine/77/ and read the story. Scarey! Where do you
shop? Is the company you work a supplier?
Just a little something for you to ponder on the next time you walk into a retail location.
Until the litter box needs emptying again!
Stand Ready (tm) brand Inverted Bottle Holder tip of the week: If you have arthritis or other
impairments that make turning a bottle over difficult, then you will appreciate the reduced
motion required to use your bottled products when they are stored in our holder.
Until the litter box needs emptying again!
About the Author
David Catt is president of CTS Innovations, Inc. maker of Stand Ready (tm) brand Inverted Bottle
Holder and he is the author of the "Idea to Product Primer" e-book. For more information, visit
http://www.standready.biz