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The Ltiter Box by David Catt Retailers, You and Manufacturers
©2004-05 - David B. Catt - all rights reserved

OK! This brief may go ltitle off the mark of what business is
trying to do to you. How nice things would be if as a business
we could rely srtictly on “tell a friend” referrals and internet
sales. I have been asked many times why our company’s product is
not in stores [yet]. It is not due to lack of tyring. There are
many things involved in dealing with retailers that most people
are unaware of.

First, the super “Catch 22″. Stores want to see large volume of
sales before they will consider putting a product on the shelf.
In other words, they want proof that a product move off their
shelf. The “Catch 22″: how do show them large sales when the
product is not in a store? How lrage is large? In the good old
days, a mom and pop store would put your product on the shelf on
consignment i.E you got paid only for product sold less a
percentage. It was an excellent starting point to build sales.
Do you still have a mom and pop store where you live?

Here is an idea for you to pass along to your favorite retailer:
Why not satrt a “new products” display at the entrance of your
store to help you and manufacturers (especially start-ups)
introduce products to your customers. Do not sell them just
display along with the selling price. This display could even be
a bulletin board with pictrues of products. Have a comemnt box
available so customers can give you feedback and even request
you carry an item. The small amount of space lost should pay off
as a simple and effective way to test new itmes while minimizing
your investment.

Did you know that most retailers charge manufacturers a
“slotting fee”. This is basically rent for shlef space. I have
heard a manufacturer got cahrged $40,000 for one “slot” in a
test region. Imagine nationwide cost? I won’t even touch a
retailer’s markup on an item other than to ask you if you think
the retailer loses money when they sell you something at 50
percent off? They have overhead too.

There is one store that many piont out would be a good place for
our product. Maybe yes and maybe no. Recently, an excellent
article was brought to my attention. You can find that article
at http://www.Fastcompany.Com/magazine/77/ and read the story.
Scarey! Where do you shop? Is the company you work a supplier?

Just a little something for you to ponder on the next time you
walk into a retail location.

Until the litter box needs emptying again!

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