Approaching a large buying department

bromster

bromster

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Hi everyone. I need advice please.

I have imported some new novelty items which I would like to market to big retailers like checkers, pick n pay etc. However, I have not had dealings with any large retail companies until now. The items' packaging and barcoding is all ready to go.

I would like some advice on how to approach or meet with these buyers, what information I would have to have on hand to avoid looking like an idiot, and what challenges to expect during negotiations.

Any input or tips would be highly appreciated.
 
From what ive heard you will have to give them a very good reason why they should stock it. Like market research indicating good possibility of sales with realistic forecasts, etc. Be prepared to ask them how high you have to jump when youre making a deal because unless its a life changing product that they need you wont have much negotiating power. To give you an idea theyre usually pretty ruthless.
 
You imported the stuff without a buyer ready? Ouch

Anyway. They'll negotiate your profit margin down to near zero and then make you carry the working capital cost. So I hope for your sake you didn't buy the stuff on credit.

I've also seen some rather funky rebate structures...

That being said - fortune favours the bold. ;)
 
You will struggle with making decent profits. I would rather look at getting your products sold on a market place or through your own e-commerce outlet.
 
Figured as much. I would be keen to know how many hundreds of percent markup they intend to make off this stuff.

Luckily I had capital for my first consignment and I have seen high demand so far. I just need to figure out how to get rid of them in decent volumes.

I will definitely be looking into Web based sales as a start. Thanks for that suggestion. However, with the current state of the SA Post Office, I may need another means of distribution. Sigh.
 
bromster said:
Figured as much. I would be keen to know how many hundreds of percent markup they intend to make off this stuff.

Luckily I had capital for my first consignment and I have seen high demand so far. I just need to figure out how to get rid of them in decent volumes.

I will definitely be looking into Web based sales as a start. Thanks for that suggestion. However, with the current state of the SA Post Office, I may need another means of distribution. Sigh.
Click to expand...

Why use the post office when we have decent couriers for the most part?
 
Whatever I see a market for. The current item is an automotive accessory (without giving the game away, let's call it a novelty key ring), so I was hoping to approach the likes of Midas, Autoquip, car dealers as well as major retailers.
 
If your item is unique, the weight/size does not really matter (it will probably cost more to package for courier in a suitable container than the product cost), but some people will purchase. The danger you face with going chain-stores or sites such as Groupon is that you either get roped into an exclusivity deal or they will source themselves as most of them have big buying departments. So I would certainly attempt to secure distribution rights if you can with the manufacturer.
 
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