You have probably heard you need the lowest price to sell your product to a major retailer.
Major retailers don’t like to take risks and they want to buy a product that is already a proven seller. If you can prove your product sells well for other retailers, that removes much of this risk.
Then, as long as they believe they will make more profit from your product than whatever it replaces, and if you can convince them that you will be a reliable supplier, they’ll give you a test.
For all of my product lines, I always started with Target because I found them to be more receptive to new ideas. Once I had good sell-through numbers from Target, getting into Wal-Mart was a lot easier.
MY “SECRET FORMULA”
Here’s how I was able to have a 95% success rate with my new products…
I found a product category that was already selling well and then improved on it to make it sell better! This is a lot less risky than a completely new invention no one has ever seen before.
When I introduced my new school supply line, I was selling a category already known to sell well and I was the first company to make school supplies with a holographic “look”.
This allowed me to sell a 2 pocket folder to retail at $1.99 when my competition was retailing at $0.69! Because these products sold so well, I got a “Best New Vendor” award from Target’s stationery & school supply department.
Don’t let anybody tell you it’s necessary to have the lowest price.
If you have a higher priced product that can sell the same unit volume as the lower priced products, the retailer will make much more money with your product and you can get away from concerns about price. Be prepared to prove it though. . .