7 Secrets to Successfully Selling to Retailers

You’ve invented the next great device, and you’re sure it’s going to be a hit. In fact, he has boxes of inventory stored in every room of his house that he’s eager to sell. His friends and family said they “love it,” but how can you get retailers to “love” it enough to order from you?

Below are 7 secrets to successfully selling to retailers. While most of the secrets are common sense, I am amazed at how many entrepreneurs, inventors, and small manufacturers try everything except these 7 secrets.

1. Know the retailer where you want your products

Not all retailers will buy your product. Most retailers have a niche that they fill. Find out what type of customer will buy your product. Are you a bargain shopper or a luxury trendsetter? If you sell lower-end kitchen appliances, perhaps a mass merchandiser like Walmart or K-Mart would be a better choice for your products than Bed Bath and Beyond or Macys.

2. Know your product and why retail buyers should buy it

Why should a retail buyer buy your product? Is it the price, the features, or something else? Be prepared to discuss in depth the features and benefits of your product, how it is better or different than similar products on the market, and why a retailer would want to sell it. Without knowing what sets your product apart from the thousands of similar products out there, you’re simply wasting time capturing the attention of a retail buyer.

3. Know your program before you call a retail buyer

I mean things like minimum orders, “min/max costs”, suggested retail price, freight prepaid vs. collect, packaging specifications, terms of payment, returns to supplier, etc. Retail buyers will ask you some very difficult questions and you need to know the details of your program, inside and out.

4. Know what marketing or sales promotions you will offer to drive sales

If you think your job is done once the retailer gives you the first purchase order, you are sadly wrong. Don’t worry…lots of small vendors forget this too. Your post-sales job is to help retailers sell through the inventory they just bought from you. As the retailer sells through its inventory, what does it do next? They buy you MORE. Whether it’s funding in-store promotions or simply listing the retailer’s URL on your website, driving more customers to your retailers is a MUST DO action step.

5. Know what type of retail packaging will fit on the retailer’s shelf

Retailers will want to know what kind of packaging their product comes in because they almost always have very limited space to work with: is it a bag with a hanging hook or is it something they’ll have to put on a shelf?

Large retailers (like Target, Walmart, Sears, etc.) will definitely want to see the product AND the packaging. They are VERY specific about the image of their store, their customer, and their available “real estate.” They want their product in their hands for review before proceeding.

You don’t necessarily HAVE to provide samples, but be ready to do so if requested. Some retailers need to see, feel and smell a product before shipping it. It is acceptable to charge for samples, especially if they are expensive or difficult to ship items.

6. Know what press clips, awards or recognitions your product has received

You’ll want to show these things to retail buyers because these things will often SELL your product for you. Favorable press shows a retailer that their product is “worthy” of being on their shelves, that it has true salability. Retail shoppers hate buying a product that hasn’t been “real world” tested or received press, awards, or accolades.

7. Know if you want to handle the sales function yourself or outsource it to someone else

While most small business owners believe they are capable of selling to retailers, they really cannot. Taking care of a retail account once the sale is complete is just as difficult as the retail sale itself. If you are not comfortable with sales, consider outsourcing this function to an independent sales representative. Independent sales representatives generally work on commission, typically 10-15% of the sales they make for you. You can usually find sales representatives on industry trade websites, trade publication advertisements, or by word of mouth.