small business bc-retail distribution-14dec2011
DESCRIPTION
presentation at Small Business BC to importers and suppliers interested in moving their product or service to retail marketTRANSCRIPT
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Retail Distribution
move your product line to market
Small Business BCGerry Spitzner – retailSOS.ca
Find me: www.retailsos.telBlog: www.retailsos.ca
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ThoughtstartersPurchasing methodsDistributionProductPreparationInsights
Gerry SpitznerretailSOS.ca 2
Roadmap
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How to approach retailersWhy and how they buyRetail distribution channelsWhat buyers look for in a supplierWhat buyers look for in a productYour sales & marketing plan
Gerry SpitznerretailSOS.ca 3
Objectives
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POS= point of salePOP= point of purchaseWMS= warehouse mgmt system
SKU= stock keeping unitMOM= minimum order multiple
CPG= consumer package good
Gerry SpitznerretailSOS.ca 4
Acronyms
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IND= independent retailerUPC= universal product codeQR= quick response codePO= purchase orderGMROI= gross margin return on investment
Gerry SpitznerretailSOS.ca 5
Acronyms
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The 4 P’s of marketing◦Product, price, place & position
7 P formula for marketing success◦Promotion, productivity and “Profit-unities” or…
How will this product generate incremental profit?
Gerry SpitznerretailSOS.ca 6
Thought starters
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What’s the difference between your customers
and your consumers ?
Gerry SpitznerretailSOS.ca 7
Thought starters
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How to sell or why retailers buy; which do you prefer to learn?
Who are your prospects more likely to believe; themselves or you?
Gerry SpitznerretailSOS.ca 8
Thought starters
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Ever had buyers remorse?
Gerry SpitznerretailSOS.ca 9
Thought starters
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Show me the value; or I’ll show you the door.
Gerry SpitznerretailSOS.ca 10
Important insight #1
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Top line sales and cash flow
Customer trafficCustomer profitabilityStaff productivityReturn on investment; ROI
Gerry SpitznerretailSOS.ca 11
What keeps retailers up at night
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Do we really need that?
Gerry SpitznerretailSOS.ca 12
What keeps retailers up at night
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Inventory is the retail gamble
Inventory management is the main focus of all retailers
Gerry SpitznerretailSOS.ca 13
What keeps retailers up at night
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Make yourself irresistible to crazy-busy customers
Gerry SpitznerretailSOS.ca 14
How to approach retailers
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Complexity brings them to a screeching halt
They subscribe to the ‘If it ain’t broke, don’t fix it’ philosophy
They think making risky decisions is career inhibiting
Gerry SpitznerretailSOS.ca 15
Crazy busy buyers
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Most of their options seem like near clones of one another
They suffer no fools gladly
Gerry SpitznerretailSOS.ca 16
Crazy busy buyers
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Keep things simpleDemonstrate strong biz case
Minimize the riskPrepare, prepare, prepare
Gerry SpitznerretailSOS.ca 17
Successful Selling to Crazy-Busy People
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Make your presentation in terms of the customer.
Gerry SpitznerretailSOS.ca 18
How to approach retailers
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How they benefit, how they profit, and how they
produce will provide value.
Gerry SpitznerretailSOS.ca 19
How to approach retailers
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Profit; make money or save time
Want to find something (new) that turns over at a price that will make them money
Gerry SpitznerretailSOS.ca 20
Why they buy
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How can I keep my customers in the store longer?
Increases the average sale per customer
Look at products through the eyes of consumers to meet leading trends
Increases impulse sales = increase average sale/customer
Gerry SpitznerretailSOS.ca 21
Why they buy
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What your biz background isYour Financial meansNumber of years in businessGeographical limitations
◦ What area can you physically cover and ship to?
Always remember while you are qualifying them; they are qualifying you.
Gerry SpitznerretailSOS.ca 22
What buyers look for in suppliers
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Trend watching; help me with what’s hot.
Tell me about something new or up and coming before telling anyone else.
Gerry SpitznerretailSOS.ca 23
What buyers look for in suppliers
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You need to know my customers.
I do. Ask me.
Gerry SpitznerretailSOS.ca 24
What buyers look for in suppliers
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How you are going to educate the customer about your product and get them to try it in my store?
Gerry SpitznerretailSOS.ca 25
What buyers look for in suppliers
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Can you replenish quickly; do you have a solid supply chain?◦ Speed to market just as important (if not MORE
important) than the shelf price or cost of an item.
Gerry SpitznerretailSOS.ca 26
What buyers look for in suppliers
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Shop the store ahead of time
Understand the strategic positioning of the store
Keep things simple; make your presentation short and snappy Gerry SpitznerretailSOS.ca 27
What sellers ought to do
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Objections and roadblocks
Understand customers situation
Help me move product and make money; frame your sale this way.
Gerry SpitznerretailSOS.ca 28
What sellers ought to do
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The answer is no...
If they feel pressure from you, If they feel like you're trying too hard to be liked,
If they don't think you understand their business,
If they get overwhelmed by what you're saying.
Gerry SpitznerretailSOS.ca 29
Important Insight #2
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3 Main supply chain channels...
WholesalersDSD; (Direct Store Delivery)Chain; Self Distributors
◦ What is your cost to ship to your customer?
Gerry SpitznerretailSOS.ca 30
Retail logistics channels
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Department storesMass & Big BoxSpecialty & DiscountCatalogue & InternetGrocery & Drug StoresConvenience stores
Gerry SpitznerretailSOS.ca 31
Retail distribution channels
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Within each category; 3 types
Chain Banner storesIndependent stores
Gerry SpitznerretailSOS.ca 32
Retail distribution channels
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Is the product WMS friendly?
Case and product UPCDealing with concealed damages
Case packGerry SpitznerretailSOS.ca 33
In the Retail Logistics Channel
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Consider using a professional agent, broker or wholesaler
There is a cost; however they have connections and already established relationships
Gerry SpitznerretailSOS.ca 34
Retail reps
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Where else are you selling this product?◦What makes it sell?
I need to know why your product will be wanted by my customers.◦Is there a “market match”?
Gerry SpitznerretailSOS.ca 35
What buyers look for in a product
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Is there a need or a market?
Or both? A need alone does not = a market; desire does
Gerry SpitznerretailSOS.ca 36
What buyers look for in a product
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Push or pull product?Is your product future proof?
What is the life cycle of product?
Gerry SpitznerretailSOS.ca 37
What buyers look for in a product
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Taste, health, ingredients, appearance, sustainability, preparation, packaging, customer value...etc etc.
Gerry SpitznerretailSOS.ca 38
What buyers look for in a product
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Look for items that are different; not the same; uniqueness
Must be easily understood by store staff and consumers
Gerry SpitznerretailSOS.ca 39
What buyers look for in a product
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Add interest and excitement to their stores with new products
What retail price can I get for this product?
Gerry SpitznerretailSOS.ca 40
What buyers look for in a product
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Some look at product first; ◦then see if they can “carry “ the price
Others look at cost first; ◦they are judging the selling price and then a product to fit or match
Gerry SpitznerretailSOS.ca 41
What buyers look for in a product
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Do not compromise on your price
Know your competition Know your taxesWholesaler upcharges Brokers feesInclude all your costs
Gerry SpitznerretailSOS.ca 42
Cost Pricing for Retail
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Mark up and marginGross profit percent; GP%Gross profit dollars; GP$Gross margin percent; GM%
Gross margin dollars; GM$Gerry SpitznerretailSOS.ca 43
Setting Retail Shelf Prices
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Tamper proof packagingUPC code that stays on package
Display racks and traysDisplay packages with a window
Off shelf areas for new mixGerry SpitznerretailSOS.ca 44
How to deal with merchandising
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Plan-o-grams & compliance
Package size/dimensionsPhotosMust fit on a shelf in the section or category it is merchandised in Gerry SpitznerretailSOS.ca 45
How to deal with merchandising
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Endure long receivable cycle
Provide datingProvide prompt pay discount
Payment by credit cardEven risk not being paidGerry SpitznerretailSOS.ca 46
Be Prepared to:
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Provide a listing allowancePrepay freight; delivery to door
Clear up damages and returns
Have a plan for recallSign a vendor agreementGerry SpitznerretailSOS.ca 47
Be Prepared to:
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Use a wholesaler or broker that specializes in your product
Referrals are the way to go
Value in a short term incentive
Gerry SpitznerretailSOS.ca 48
Consider
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Becoming the retailer & go online
The use of online business media
Carefully consider consignment Gerry SpitznerretailSOS.ca 49
Consider
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National chain retailers have their own import department
Why do they need you?
Gerry SpitznerretailSOS.ca 50
Consider
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Retailers need new mix to create, engage and keep customers.
Increase impulse sales and profit
Gerry SpitznerretailSOS.ca 51
Stepping Stones
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Chain retailers like to act like small retailers
IND retailers look for unique products not in chains
Gerry SpitznerretailSOS.ca 52
Stepping Stones
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Hunters and gatherers; find the hunters!
◦Where and how do I find them?
Gerry SpitznerretailSOS.ca 53
Stepping Stones
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How can you?...Help them make moneySave them timeMake them feel safeMake them feel special
Gerry SpitznerretailSOS.ca 54
Stepping Stones
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Confidence is the #1 factor ◦in determining what, from who and where retailers buy...
quality is #2, service is #3selection is #4 and price is #5
Gerry SpitznerretailSOS.ca 55
Important insight #3
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Retailers are looking for new products to differentiate their stores...
They don’t have time to find them; this is your opportunity!
Gerry SpitznerretailSOS.ca 56
The Opportunity
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Decide first if you want to approach IND’s or chain retailers.
Then determine your exact retail target and method of distribution.
Gerry SpitznerretailSOS.ca 57
What Now?
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Start a sales & marketing plan.
Understand your target market and it’s buying motivators. ◦Retailer (your customer) and consumers
Who, what, where and why?
Gerry SpitznerretailSOS.ca 58
What Now?
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Define your unique value proposition and keep it current.
Focus on benefits not just features.◦Value is the bundle of perceived benefits offered at a given price
Gerry SpitznerretailSOS.ca 59
What Now?
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Your evaluation is appreciated
Want a copy of this presentation with my speakers notes?
E-mail me; [email protected]
Gerry SpitznerretailSOS.ca 60
Thanks!
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Twitter: @passion4retailLinkedIn: Gerry SpitznerBlog: retailsos.caEmail: [email protected]: gerryspitzner.telInfo: retailsos.tel
Gerry SpitznerretailSOS.ca 61
Find me
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For bar code info; www.gs1ca.org
For mfr agents info: http://www.cylex.ca/vancouver/manufacturers%20agents%20representatives.html
For list of mfr agents; Google key words; *manufacturers agents vancouver bc*; or *{food brokers} vancouver bc* Gerry SpitznerretailSOS.ca 62
Resource Links
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For QR codes: www.qrstuff.com
For wholesalers; use Google key words; *wholesale (your product category i.e. clothing) vancouver bc*
Retail association: www.shelfspace.ca
Gerry SpitznerretailSOS.ca 63
Resource Links
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Sales questions: www.gitomer.com
Sales and personal development: www.briantracy.com
Retail, sales & marketing and small business: www.donaldcooper.com
Retail, sales & marketing and small business: www.retailwire.com
Gerry SpitznerretailSOS.ca 64
Learning Links
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Sales & Marketing: www.raintoday.com
Trends: www.trendhunter.com
Trends: www.springwise.com
Trends: www.trendwatching.com
Pricing and margin definition: http://en.wikipedia.org/wiki/Gross_margin
Gerry SpitznerretailSOS.ca 65
Learning Links
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Little Red Book of Selling; by Jeffrey Gitomer
The Sales Bible; by Jeffrey Gitomer www.gitomer.com Be Different or Be Dead; by Roy Osing www.bedifferentorbedead.com Unmarketing: by Scott Stratten www.unmarketing.com Enchantment: by Guy Kawasaki www.guykawasaki.com/enchantment
Gerry SpitznerretailSOS.ca 66
Books