Small Business BC-retail distribution-24aug2012
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Small Business BC Gerry Spitzner | retailSOS.ca
Find me: www.retailSOS.tel
August 24, 2012
Thoughtstarters
Purchasing methods
Distribution
Product
Preparation
retailSOS.ca | Gerry Spitzner 2
Insights for creating, engaging and
keeping your customer
Your sales & marketing plan
Your questions
How can I be of service to you…
right now?
retailSOS.ca | Gerry Spitzner 3
How to approach retailers
Why and how they buy
Retail distribution channels
What buyers look for in a supplier
What buyers look for in a product
retailSOS.ca | Gerry Spitzner 4
AR = Accounts Receivable
POS = point of sale
POP = point of purchase
WMS = warehouse mgmt system
SKU = stock keeping unit
MOM = minimum order multiple
CPG = consumer package good
retailSOS.ca | Gerry Spitzner 5
IND = independent retailer
UPC = universal product code
QR = quick response code
PO = purchase order
GMROI = Gross Margin Return On Investment
CRM = Customer Relationship Management
retailSOS.ca | Gerry Spitzner 6
DSD = Direct Store Distribution
EDI = Electronic Data Interchange
EDLP = Everyday Low Pricing
OTB = Open-to-Buy
POG = Plan-o-gram
RDA = Retail Display Allowance
retailSOS.ca | Gerry Spitzner 7
This packet of thought starters is
just that; a starting point. Let your
mind wander and consider what you
can do to help retailers minimize
risks and maximize profitability.
retailSOS.ca | Gerry Spitzner 8
The 4 P’s of marketing ◦ Product, price, place & position
7 P formula for marketing success ◦ Promotion, productivity and “Profit-unities”
How will this product generate incremental profit?
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What’s the difference between
your customers and your
consumers ?
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How to sell or why retailers buy;
which do you prefer to learn?
Who are people more likely to
believe; themselves or you?
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Ever had buyers remorse?
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Show me the value; or I’ll show
you the door.
◦ Definition of Value: is a function of the bundle of
perceived benefits offered at a given price.
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Do you sometimes wish you could
just read your buyer’s mind?
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Top line sales and cash flow
Customer traffic
Customer profitability
Staff productivity
Return on investment; ROI
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Do we really need that?
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Inventory is the retail gamble
Help me move it; and promote it.
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Make yourself irresistible to
crazy-busy customers
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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
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They think making risky decisions is
career inhibiting
Most of their options seem like near
clones of one another
Not tolerant of stupidity or
incompetence in other people.
retailSOS.ca | Gerry Spitzner 20
Keep things simple
Demonstrate strong biz case
Minimize the risk
Prepare, prepare, prepare
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Make your presentation in terms of the customer.
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How they benefit, how they profit,
and how they produce will
provide value.
retailSOS.ca | Gerry Spitzner 23
Taking a look at the initial
purchasing process from the buyer’s
perspective offers invaluable
insight to consider in your own
selling process.
retailSOS.ca | Gerry Spitzner 24
Profit; make money or save time
Want to find something (new)
that turns over at a price that will
make them money
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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
Increased impulse sales = increase average sale/customer
retailSOS.ca | Gerry Spitzner 26
What your biz background is
Your Financial means
Number of years in business
Geographical limitations ◦ What area can you physically cover and ship to?
Always remember while you are qualifying
them; they are qualifying you.
retailSOS.ca | Gerry Spitzner 27
Trend watching; help me with
what’s hot.
Tell me about something new or
up and coming.
retailSOS.ca | Gerry Spitzner 28
You need to know my customers.
I do.
Ask me.
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I need to know your Advertising
and promotions plan.
How you are going to educate my
customers about your product
and get them to try it in my store?
retailSOS.ca | Gerry Spitzner 30
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.
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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
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Objections and roadblocks
Understand customers situation
Help me move product and make
money; frame your sale this way.
retailSOS.ca | Gerry Spitzner 33
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.
retailSOS.ca | Gerry Spitzner 34
Retail distribution channels consist
of some combination of producers
or manufacturers, agents or brokers,
wholesalers or distributors,
importers, and retailers.
retailSOS.ca | Gerry Spitzner 35
3 Main supply chain channels... ◦ What is your cost to ship to your customer?
Wholesalers
DSD; ( Direct Store Delivery )
Chain; Self Distributors
retailSOS.ca | Gerry Spitzner 36
Department stores
Mass & Big Box
Specialty & Discount
Catalogue & Internet
Grocery & Drug Stores
Convenience stores
retailSOS.ca | Gerry Spitzner 37
Within each category; 3 types
Chain
Banner stores
Independent stores
retailSOS.ca | Gerry Spitzner 38
Is the product WMS friendly?
Case and product UPC
Dealing with concealed damages
Case pack; smaller MOM’s?
retailSOS.ca | Gerry Spitzner 39
Consider using a professional
agent, broker or wholesaler
◦ When you don’t have your own sales team
◦ There is a cost; however they have connections
and already established relationships
retailSOS.ca | Gerry Spitzner 40
What you say and how you deliver
your “pitch” will make all the
difference...
retailSOS.ca | Gerry Spitzner 41
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”?
retailSOS.ca | Gerry Spitzner 42
Is there a need or a market?
Or both?
A need alone does not = a market; desire does
retailSOS.ca | Gerry Spitzner 43
Push or pull product?
Is your product future proof?
What is the life cycle of product?
retailSOS.ca | Gerry Spitzner 44
Taste, health, ingredients,
appearance, sustainability,
preparation, packaging,
customer value...etc etc.
◦ all buyers do things for their own reasons, figure out
what the buyer wants and then provide it for them
retailSOS.ca | Gerry Spitzner 45
Look for items that are different;
not the same; uniqueness
Must be easily understood by
store staff and consumers
retailSOS.ca | Gerry Spitzner 46
Add interest and excitement to
their stores with new products
What retail price can I get for this
product?
retailSOS.ca | Gerry Spitzner 47
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
retailSOS.ca | Gerry Spitzner 48
Setting the right price for your products and services requires balancing merchandising, pricing, placement, packaging, and promotion.
retailSOS.ca | Gerry Spitzner 49
Do not compromise on your price
Know your competition
Know your taxes
Wholesaler upcharges
Brokers fees
Include all your costs
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Mark up and margin
Gross profit percent; GP%
Gross profit dollars; GP$
Gross margin percent; GM%
Gross margin dollars; GM$
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Tamper proof packaging
UPC code that stays on package
Display racks and trays
Display packages with a window
Off shelf areas for new mix
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Plan-o-grams & compliance
Package size/dimensions
Photos
Must fit on a shelf in the section
or category it is merchandised in
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A successful marketing plan doesn't
have to be complex or lengthy, but
should contain enough information
to help you establish, direct and
coordinate your marketing efforts.
retailSOS.ca | Gerry Spitzner 54
Endure long receivable cycle
Provide dating
Provide prompt pay discount
Payment by credit card
Even risk not being paid
retailSOS.ca | Gerry Spitzner 55
Provide a listing allowance
Prepay freight; delivery to door
Clear up damages and returns
Have a plan for recall
Sign a vendor agreement
retailSOS.ca | Gerry Spitzner 56
Use a wholesaler or broker that
specializes in your product
Referrals are the way to go
Value in a short term incentive
retailSOS.ca | Gerry Spitzner 57
Becoming the retailer & go online
The use of online business media
Carefully consider consignment
retailSOS.ca | Gerry Spitzner 58
National chain retailers have
their own import department
Why do they need you?
retailSOS.ca | Gerry Spitzner 59
Now what or what now? …
Your outlook is a matter of your
positive attitude and willingness
to help.
retailSOS.ca | Gerry Spitzner 60
Retailers need new mix to create,
engage and keep customers.
Increase impulse sales and profit
retailSOS.ca | Gerry Spitzner 61
Chain retailers like to act like
small retailers
IND retailers look for unique
products not in chains
retailSOS.ca | Gerry Spitzner 62
How can you?...
Help them make money
Save them time
Make them feel safe
Make them feel special
retailSOS.ca | Gerry Spitzner 63
Confidence is the #1 factor ◦ in determining what, from who and where retailers buy...
quality is #2, service is #3
selection is #4
and price is #5
retailSOS.ca | Gerry Spitzner 64
Retailers are looking for new
products to differentiate their
stores...
They don’t have time to find them;
this is your opportunity!
retailSOS.ca | Gerry Spitzner 65
Decide first if you want to
approach IND’s or chain retailers.
Then determine your exact ideal
retail customer and method of
distribution.
retailSOS.ca | Gerry Spitzner 66
Start a sales & marketing plan.
Understand your target market
and it’s buying motivators. ◦ Retailer (your customer) and end consumers
Who, what, where and why?
retailSOS.ca | Gerry Spitzner 67
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
retailSOS.ca | Gerry Spitzner 68
Your evaluation is appreciated
Want a copy of this presentation
with my speakers notes?
E-mail me; [email protected]
retailSOS.ca | Gerry Spitzner 69
Follow Twitter: @passion4retail
Connect LinkedIn: Gerry Spitzner
Web: retailSOS.ca
Blog: gerryspitzner.com
Email: [email protected]
Online Biz Card: gerryspitzner.tel
Online Biz Card: retailSOS.tel
retailSOS.ca | Gerry Spitzner 70
retailSOS.ca is a Vancouver-based retail consultancy guiding
small business owners to create, engage and retain great
customers by doing the right thing extraordinarily well.
Gerry Spitzner works as a management consultant supporting
retail and small business owners to achieve results by aligning
their vision and implementing marketing strategy with
operational execution.
Drawing on 35+ years experience in multi-site retail operations,
independent store ownership and wholesale supply-chain;
Gerry brings the leadership, knowledge and market awareness
of ownership and business development to retail and small
business owners to achieve growth objectives.
retailSOS.ca | Gerry Spitzner 71
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*
For wholesalers; use Google key words; *wholesale (your product category i.e. clothing) vancouver bc*
retailSOS.ca | Gerry Spitzner 72
WalMart Vendor agreement:
http://www.walmartstores.com/Suppliers/248.aspx
Canadian Tire vendor agreement:
http://corp.canadiantire.ca/EN/JoinOurTeam/Suppliers/Pages/Suppli
erRequirements.aspx
Target vendor agreement:
http://img1.targetimg1.com/wcsstore/marketing/ca/company/image
s/canada/pdf/Vendor_Online_Agreement.pdf
Home Depot vendor agreement:
https://homedepotlink.homedepot.com/en-
us/Related%20Documents/Canada%20Supplier%20Terms%20and%2
0Conditions02-04.pdf
retailSOS.ca | Gerry Spitzner 73
For QR codes: www.qrstuff.com
For bar code info; www.gs1ca.org
Retail associations:
Shelfspace: www.shelfspace.ca
Retail Council of Canada:
www.retailcouncil.org
retailSOS.ca | Gerry Spitzner 74
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
retailSOS.ca | Gerry Spitzner 75
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
retailSOS.ca | Gerry Spitzner 76
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
retailSOS.ca | Gerry Spitzner 77