Another frequent question we get is whether you can approach Wal-Mart or another major chain with only a prototype with the plan of getting an order to fund production.
We also get asked if Wal-Mart or other retailers will either buy your idea or product and finance the production for you.
The answer is no & no.
Wal-Mart, Target and other major chains are as concerned about prompt delivery as they are about your product’s saleability.
If all you have is a prototype and need financial help to get into production, that tells them you do not have the financial strength to do business with them.
But don’t despair. All hope is not lost. You can still use your prototype to:
1. Make a licensing or joint venture deal with a company already supplying the chain you want to get in. You will want to find a company already in your target account’s stores who is already selling into the department your product belongs in and who does not have any directly competitive products to yours.
2. Make a joint venture deal with another company to finance production. One good prospect for a JV is whoever will be making your product for you because they have a vested interest in it’s success.
3. Make a deal with a smaller retailer explaining your situation and offering them a head start over any of their competitors.