How do I convince an established distributor to distribute my newly launched product when he already has many successful products?

2017-10-18T09:19:32+00:00 By |Categories: Resellers|Tags: |

This is a Quora question I was asked and my answer is below. These are the major considerations when selling to distributors, resellers or retailers. History/Sales Results Demonstrate prior sales results of your product either direct to your consumer, or through other distributors, resellers or retailers. You want to prove that your product sells. Marketing [...]

What is a list of consumer product markets/industries and their average markups?

2017-07-05T10:59:55+00:00 By |Categories: Resellers|Tags: , , , , , , , , , , |

I see a lot of articles that highlight the industries/products with the highest markeups (e.g., glass frames, cosmetics, watches, etc.), but I’m not just looking for the highest, I’m interested in a more comprehensive list. Doesn’t seem to be transparent at all! Thanks for your help. This is a Quora question I was asked and [...]

How can a local retail store survive, or prosper, in the age of superstores and the Internet market?

2017-06-04T14:20:58+00:00 By |Categories: Resellers|Tags: , , , , , , |

This is a Quora question I was asked and here is my answer. I don't work in retail, but sell to retailers, so I can only talk from this perspective.   In addition, while I predominantly sell direct-to-consumer with my products, with one of my companies, I have location-based sales that while not pure retail, [...]

Do most mega supermarkets charge $10,000+ one-time fees for newly registered suppliers?

2017-05-30T18:19:56+00:00 By |Categories: Resellers|Tags: , |

This is a Quora question I was asked and here is my answer. Yes, that is normal. Most major retailers charge up front fees, called slotting fees, some which can easily be high in the 5 figures. You cannot look at slotting fees without considering the whole range of retailer tradespend requirements and terms, because [...]

The correct way and the specific equation to use to determine markups and margin for resellers and retailers

2017-05-23T12:33:16+00:00 By |Categories: Resellers|Tags: , , , , , , , , , , , , |

I got this question emailed to me by Marty: I'm looking to find out the typical pricing markups (margins) for plastic storage containers, from manufacturing through retail. I came across your post on Quora (dated 3/16) which was helpful, but I had trouble understanding some of it. Wondering if you could clarify through an example, [...]

Is obtaining distributor pricing from a manufacturer purely based on your order volume with said manufacturer?

2016-08-11T09:48:23+00:00 By |Categories: Resellers|Tags: , |

This is a Quora question I was asked. My answer is below. In food/consummables, manufacturers publish their price list, which in my experience does not normally include discounts for volume-based orders. If volumes are very low, then there may be a higher cost to cover the additional administrative and logistics costs associated with smaller orders, [...]

On average, how much does Target mark up its items?

2016-10-14T16:23:19+00:00 By |Categories: Resellers|Tags: , , , , , , |

This is Quora question I was asked. Not including produce, on average Target’s margins in my experience are 25–30%. I use margins and not markup because in the industry, margins is what is used and they are computed off of suggested retail price (SRP or MSRP). So, for example, using a $9.99 SRP, wholesale cost [...]

What is the best strategy for introducing a new product (spirits brand) to a distributor?

2017-05-06T20:00:12+00:00 By |Categories: Resellers|Tags: |

This is a Quora question and here is my answer. I have not sold spirits directly so do not know of the specific nuances for that industry. But below are more general approaches for a strategy for introducing a new product.  In my experience, this works across many CPG categories. I will assume you do [...]

What is Tradespend?

2017-08-20T19:58:17+00:00 By |Categories: Downloads, Resellers|Tags: , , , , , , , , , , , , , |

Tradespend is the amount that a manufacturer/vendor spends to promote a product in-store.  Typical in-store promotion vehicles include discounts/coupons and supporting ads in a retailer's circular. However, in the industry, tradespend is the term used to describe all the costs associated with selling to a retailer.  Here is a general list of [...]